Mayr-Melnhof Karton AG / AT0000938204

Mayr-Melnhof Karton AG: MM reports first quarter 2024 results

Mayr-Melnhof Karton AG / Key word(s): Quarter Results


23.04.2024 / 08:00 CET/CEST
The issuer is solely responsible for the content of this announcement.

---

Result below previous year as expected Significant volume growth at MM Board & Paper Continuity at a good level at MM Packaging Weak consumption continues to weigh on end markets Pressure on margins carries on Successful profit & cash protection programme will be continued Sales price development decisive for earnings situation in 2024 Group Key indicators - IFRS

Consolidated, in millions of EUR	1Q/2024	1Q /2023	+/-
Sales	1,025.0	1,122.1	-8.7 %
Adjusted EBITDA	94.5	133.6	-29.3 %
Adjusted operating profit	39.6	78.7	-49.6 %
Adjusted operating margin (in %)	3.9 %	7.0 %	-314 bp
Profit before tax	18.0	49.0	-63.2 %
Profit for the period	10.9	34.9	-68.8 %
Earnings per share (in EUR)	0.52	1.71

Peter Oswald, MM CEO, comments: “The MM Group recorded a decline in both Group sales and adjusted operating profit in the 1st quarter of 2024 compared to the previous year’s value, due to the earnings performance in the Board & Paper division. The destocking in the supply chain has been largely completed, leading to a significant recovery of volumes sold in Board & Paper. However, pressure on margins continued as expected, as price increases will only compensate for the recent rise in production costs from the 2nd quarter onwards. In contrast, the Packaging division recorded a slight increase in results compared to the previous year, even though the margin was below the strong level of the 3rd and 4th quarter of 2023. Against this background, the profit & cash protection programme, which has already been successfully implemented, and the measures to intensify market penetration will be systematically continued in 2024. As consumer spending on everyday goods remains subdued, the end markets continue to record hardly any growth. In particular, the development of sales prices will remain decisive for the earnings situation in 2024.”, underlines Oswald. INCOME STATEMENT
At EUR 1,025.0 million, the Group’s consolidated sales were below the previous year's figure (1Q 2023: EUR 1,122.1 million), primarily due to price-related declines in both divisions. Adjusted operating profit decreased by EUR 39.1 million from EUR 78.7 million to EUR 39.6 million. This decrease is primarily due to the recent increase in production costs in the Board & Paper division, which are to be offset by higher sales prices from the 2nd quarter onwards. The Group’s adjusted operating margin was therefore 3.9 % (1Q 2023: 7.0 %). Financial income amounted to EUR 6.6 million (1Q 2023: EUR 1.3 million). The increase in financial expenses from EUR -10.8 million to EUR -21.4 million resulted in particular from higher interest rates for variable-interest loans. “Other financial result - net” changed from EUR -3.1 million to EUR -6.8 million, mainly owing to currency translations. Profit before tax thus totalled EUR 18.0 million after EUR 49.0 million in the previous year. Income tax expense amounted to EUR 7.1 million (1Q 2023: EUR 14.1 million), resulting in an effective Group tax rate of 39.6 % (1Q 2023: 28.7 %). Thus, profit for the period decreased from EUR 34.9 million to EUR 10.9 million. OUTLOOK
Despite significant volume increases compared to the previous year in the Board & Paper division, there are still hardly any signs of growth on the consumer goods end markets. Under these conditions, MM is focusing on margin-conscious market share gains and a consistent continuation of the profit & cash protection programme, which has been successfully implemented to date. The upward trend in production costs is to be compensated by an ongoing improvement in sales prices. This development in particular will remain decisive for the profit situation in 2024. ----------------------------- Please find the detailed Press Release and the Report for the first quarter of 2024 as well as the CEO Audio-Q&A-Webcast on our website: https://www.mm.group.
Forthcoming results:
August 22, 2024   Half-Year Results 2024 For further information, please contact:
Stephan Sweerts-Sporck, Investor Relations, Mayr-Melnhof Karton AG
Brahmsplatz 6, A-1040 Vienna
Tel.: [phone]
E-Mail: [e-mail], Website: https://www.mm.group

---

23.04.2024 CET/CEST This Corporate News was distributed by EQS Group AG. www.eqs.com

---

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:	[e-mail]
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:	1886225

End of News	EQS News Service

---

1886225  23.04.2024 CET/CEST