EQS-News: Mayr-Melnhof Karton AG: MM reports results for the first quarter of 2023
EQS-News: Mayr-Melnhof Karton AG / Key word(s): Quarter Results
Mayr-Melnhof Karton AG: MM reports results for the first quarter of 2023
25.04.2023 / 08:00 CET/CEST
The issuer is solely responsible for the content of this announcement.
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• Results below previous year’s period as expected
• Sales growth due to acquisitions of the previous year in the pharma
packaging sector
• Capex- and market-related significantly lower volume at MM Board &
Paper
• High customer inventory levels and weaker purchasing power weigh on
demand
Group Key indicators – IFRS
Consolidated, in millions of EUR 1Q/2023 1Q /2022 +/-
Sales 1,122.1 1,060.4 +5.8 %
EBITDA 116.6 155.0 -24.8 %
Operating Profit 61.6 111.1 -44.6 %
Operating margin (in %) 5.5 % 10.5 % -499 bp
Profit before tax 49.0 103.6 -52.8 %
Profit for the period 34.9 79.5 -56.1 %
Earnings per share (in EUR) 1.71 3.95
Peter Oswald, MM CEO, comments: “As expected, the MM Group recorded a
restrained start into the year in the MM Board & Paper division in the
1^st quarter of 2023 against the background of a slow destocking of high
customer inventory levels as well as inflation-related restrained demand.
In addition to the planned capex-related shutdowns in the cartonboard
mills Frohnleiten and Neuss, considerable market-related downtimes were
necessary. In the division MM Packaging, demand tended to be weaker in the
first months, but was overall still resilient. The significant growth of
MM Packaging compared to the 1^st quarter of the previous year results
mainly from the inclusion of last year’s acquisitions in the pharma
packaging sector, Essentra Packaging and Eson Pac. Structural adjustments
were continued and affected one packaging site in Germany.
As a result of ongoing weaker demand and the implementation of major
investments in our cartonboard mills Frohnleiten, Neuss and Kolicevo in
the first three quarters, a decline in volume and result is foreseeable in
the Board & Paper division for 2023, as already indicated. At MM
Packaging, the focus is primarily on the integration of the Ex-Essentra
Packaging business with cost optimization and structural adjustments.
Accordingly, 2023 will be a transition year for MM Board & Paper on the
one hand and an integration year for MM Packaging on the other hand. While
profitability was above the trend line in 2022, it is expected to be below
in 2023.”
INCOME STATEMENT
The Group’s consolidated sales increased by EUR 61.7 million or 5.8 % to
EUR 1,122.1 million (1Q 2022: EUR 1,060.4 million). This increase results
mainly acquisition-related from the division MM Packaging.
At EUR 61.6 million, operating profit was EUR 49.5 million below the
comparable figure of the previous year (1Q 2022: EUR 111.1 million). This
decline is primarily due to market- and rebuild-related downtimes in the
MM Board & Paper division and restructuring expenses in the amount of EUR
15.5 million in the Packaging division. The Group’s operating margin was
at 5.5 % (1Q 2022: 10.5 %).
Financial income amounted to EUR 1.3 million (1Q 2022: EUR 1.6 million).
The increase in financial expenses from EUR -7.5 million to EUR -10.8
million is mainly due to higher interest expenses for Schuldscheindarlehen
and financing of the accomplished acquisitions and organic growth
projects. “Other financial result – net” changed from EUR -1.6 million to
EUR -3.1 million, in particular owing to currency translation.
Profit before tax of EUR 49.0 million was EUR 54.6 million lower than the
previous year’s value (1Q 2022: EUR 103.6 million). Income tax expense
amounted to EUR 14.1 million (1Q 2022: EUR 24.1 million), resulting in an
effective Group tax rate of 28.7 % (1Q 2022: 23.3 %).
Profit for the period decreased by EUR 44.6 million to EUR 34.9 million
(1Q 2022: EUR 79.5 million).
OUTLOOK
Demand for our cartonboard and paper products is noticeable restrained due
to continued high customer inventory levels and the increasingly
restraining effect of inflation on private consumption. Therefore, in
addition to the planned capex-related machine downtimes, there will also
be market-related downtimes in the MM Board & Paper division in the 2^nd
quarter. The development of price levels continues to be heterogeneous by
product area. In addition, the weakening in private consumption is also
reflected in several sales markets of MM Packaging. The increased
investment activity to strengthen the competitiveness and growth ability
of MM is being implemented according to plan, as well as the integration
of last year’s acquisitions in the pharma packaging sector. Under the
tightened market conditions, structural adjustment measures and cost
optimizations will be pushed forward with both a short- and medium-term
perspective in order to ensure a good long-term development. As already
indicated, 2023 will be a transition year for MM Board & Paper and an
integration year for MM Packaging with profitability below the trend line
after being above in 2022.
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Please find the detailed Press Release and the Report for the 1^st quarter
of 2023 as well as the CEO Audio-Q&A-Webcast on our website:
https://www.mm.group.
Forthcoming results:
August 10, 2023 Half-Year Results 2023
For further information, please contact:
Stephan Sweerts-Sporck, Investor Relations, Mayr-Melnhof Karton AG,
Brahmsplatz 6, A-1040 Vienna
Tel.: +43 1 501 36-91180,
E-Mail: [1]investor.relations@mm.group, Website: [2] https://www.mm.group
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25.04.2023 CET/CEST This Corporate News was distributed by EQS Group AG.
www.eqs.com
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Language: English
Company: Mayr-Melnhof Karton AG
Brahmsplatz 6
1040 Wien
Austria
Phone: 0043 1 501 36 91180
Fax: 0043 1 501 36 91391
E-mail: investor.relations@mm.group
Internet: www.mm.group
ISIN: AT0000938204
WKN: 93820
Indices: ATX
Listed: Regulated Unofficial Market in Berlin, Frankfurt (Basic
Board), Munich, Stuttgart, Tradegate Exchange; Vienna Stock
Exchange (Official Market)
EQS News ID: 1615605
End of News EQS News Service
1615605 25.04.2023 CET/CEST
References
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1. investor.relations@mm.group
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