2023-04-25 06:01:48
EQS-News: Mayr-Melnhof Karton AG / Key word(s): Quarterly Results Mayr-Melnhof Karton AG: MM publishes results for the 1st quarter of 2023 04/25/2023 / 08:00 CET/CEST The issuer is responsible for the content of the announcement responsible. ══════════════════════════════════════════════ ═══ ════════════════════════ • Earnings as expected below prior-year period • Sales growth due to acquisitions in the prior-year pharmaceutical packaging segment • Significantly lower volume at MM Board & due to investment and market conditions Paper • High inventories at customers and weaker purchasing power depress demand Key figures of the MM Group ‑ IFRS Consolidated in EUR million Q1/2023 Q1/2022 +/- 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% Net income for the period 34.9 79.5 -56.1% Earnings per share (in EUR) 1.71 3.95 Peter Oswald, MM CEO: “As expected, the MM Group reported in the 1st quarter of 2023 in the MM Board & Paper had a cautious start to the year once morest the background of the slow reduction in high inventories at customers and dampened demand due to inflation. In addition to the planned investment-related downtimes in the Frohnleiten and Neuss cardboard plants, considerable market-related downtimes were necessary. In the MM Packaging division, demand tended to be weaker in the first few months, but was still resilient overall. The significant growth of MM Packaging compared to the 1st quarter of the previous year results primarily from the inclusion of last year’s acquisitions in the area of pharmaceutical packaging, Essentra Packaging and Eson Pac. Structural adjustments were continued and affected a packaging site in Germany. As a result of the persistently weaker demand and the implementation of major investments in our cardboard plants Frohnleiten, Neuss and Kolicevo in the first three quarters, a decline in volume and earnings is foreseeable in the Board & Paper Division, as already indicated for 2023. 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 year of transition for MM Board & Paper on the one hand and a year of integration for MM Packaging on the other. If profitability was above the trend line in 2022, it is expected to be below it in 2023.” INCOME STATEMENT The consolidated sales of the Group increased by EUR 61.7 million or 5.8% to EUR 1,122.1 million (Q1 2022: 1,060, EUR 4 million). This growth is mainly due to the acquisition of the MM Packaging division. At EUR 61.6 million, the operating result was EUR 49.5 million below the comparative figure for the previous year (Q1 2022: EUR 111.1 million). This decline is mainly due to downtimes in the MM Board & Paper division due to market and remodeling and restructuring expenses of EUR 15.5 million in the packaging division. The Group’s operating margin was therefore 5.5% (Q1 2022: 10.5%). Financial income amounted to EUR 1.3 million (Q1 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 promissory note loans and financing for the acquisitions made and organic growth projects. The “Other financial result – net” changed from EUR -1.6 million to EUR -3.1 million, primarily due to foreign currency effects. At EUR 49.0 million, earnings before taxes were EUR 54.6 million lower than in the previous year (Q1 2022: EUR 103.6 million). Income taxes amounted to EUR 14.1 million (Q1 2022: EUR 24.1 million), resulting in an effective group tax rate of 28.7% (Q1 2022: 23.3%). The profit for the period fell by EUR 44.6 million to EUR 34.9 million (Q1 2022: EUR 79.5 million). OUTLOOK Demand for our cardboard and paper products is clearly subdued due to persistently high customer inventories and the increasingly dampening effect of inflation on private consumption. Therefore, in addition to the planned investment-related machine downtimes, there will also be market-related downtimes in the MM Board & Paper Division in the second quarter. The development of price levels continues to be heterogeneous by product area. In addition, the slowdown in private consumption is also reflected in several of MM Packaging’s sales markets. The increased investment activity to strengthen MM’s competitiveness and ability to grow is being implemented according to plan, as is the integration of last year’s acquisitions in the area of pharmaceutical packaging. Under the aggravated market conditions, structural adjustment measures and cost optimization measures are being pursued with both a short and medium-term perspective in order to ensure good long-term development. As already indicated, 2023 will present itself as a transition year for MM Board & Paper and an integration year for MM Packaging with profitability below the trend line following being above it in 2022. —————————– Please find the detailed press release and report on Q1 2023 as well as the CEO Audio Q&A webcast on our website at: Next date: August 10, 2023 Results for the first half of 2023 For further information please contact: Mag. Stephan Sweerts-Sporck, Investor Relations, Mayr-Melnhof Karton AG, Brahmsplatz 6, A-1040 Vienna Phone: +43 1 501 36-91180, email: [1]investor.relations@mm.group, Website: [2]
══════════════════════════════════════════════ ═══ ════════════════════════ 04/25/2023 CET/CEST Release of a Corporate News/Financial News, transmitted by EQS Group AG. www.eqs.com ═════════════════════════════════════════════ ═════════════════════════════ Language: German Company: Mayr-Melnhof Karton AG Brahmsplatz 6 1040 Vienna Austria Phone: 0043 1 501 91180 Fax: 0043 1 501 36 91391 Email: investor.relations@mm.group Internet: www.mm.group ISIN: AT0000938204 WKN: 93820 Indices: ATX Stock exchanges: Freiverkehr in Berlin, Frankfurt (Basic Board), Munich, Stuttgart, Tradegate Exchange; Vienna Stock Exchange (Official Market) EQS News ID: 1615605 End of message EQS News-Service 1615605 04/25/2023 CET/CEST References Visible links 1. investor.relations@mm.group
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