Mayr-Melnhof Karton AG / AT0000938204
07.11.2023 - 08:00:24Mayr-Melnhof Karton AG: MM reports results for the first three quarters of 2023
Mayr-Melnhof Karton AG / Key word(s): Quarter Results 07.11.2023 / 08:00 CET/CEST The issuer is solely responsible for the content of this announcement. 3Q operating profit above previous quarter but well below previous year Solid performance at MM Packaging Market- and capex-related volume decline continued to weigh on results of MM Board & Paper General conditions remain tight as a result of inflation-related consumption restraint and the macroeconomic slowdown No immediate recovery in sight Initiated profit and cash protection program begins to take effect Group Key indicators - IFRS
At EUR 3,196.5 million, the Group's consolidated sales were below the previous year’s figure (1-3Q 2022: EUR 3,450.4 million). A primarily volume-related decline in the division MM Board & Paper contrasted with an acquisition- and price-related increase in the division MM Packaging. Operating profit decreased by EUR 292.4 million from EUR 452.2 million to EUR 159.8 million. This decline mainly results from extensive market- and capex-related downtime at MM Board & Paper. The Group’s operating margin was therefore at 5.0 % (1-3Q 2022: 13.1 %). Financial income amounted to EUR 5.4 million (1-3Q 2022: EUR 3.1 million). The increase in financial expenses from EUR -23.3 million to EUR -40.0 million is primarily due to higher interest expenses for Schuldscheindarlehen and financing of the accomplished acquisitions and organic growth projects. “Other financial result - net” changed from EUR -15.2 million to EUR -6.3 million, in particular owing to currency translation. Profit before tax was EUR 118.9 million after EUR 416.8 million in the previous year. Income tax expense amounted to EUR 27.7 million (1-3Q 2022: EUR 101.6 million), resulting in an effective Group tax rate of 23.3 % (1-3Q 2022: 24.4 %). Thus, profit for the period decreased from EUR 315.2 million to EUR 91.2 million. DEVELOPMENT IN THE 3RD QUARTER As expected, business development in the 3rd quarter continued at a similar level as in the previous quarter. Due to further market and capex-related downtime in the division MM Board & Paper as well as heterogeneous demand in the sales markets of MM Packaging and increasing price pressure, consolidated sales amounted to EUR 1,015.1 million after EUR 1,059.3 million in the 2nd quarter of 2023 and EUR 1,231.9 million in the 3rd quarter of the previous year. The Group's operating profit of EUR 55.8 million was above the previous quarter (2Q 2023: EUR 42.4 million) due to a strong profit contribution from MM Packaging, but well below the previous year's level (3Q 2022: EUR 167.2 million). The operating margin came in at 5.5 % (2Q 2023: 4.0 %; 3Q 2022: 13.6 %). Profit for the period amounted to EUR 27.9 million (2Q 2023: EUR 28.4 million; 3Q 2022: EUR 109.4 million). The operating margin of the division MM Board & Paper was -3.0 % (2Q 2023: -2.0 %; 3Q 2022: 15.6 %) mainly due to market-related reduced capacity utilization as well as capex downtime at the Slovenian Kolicevo board mill. MM Packaging's operating margin reached 11.4 % particularly as a result of declining cartonboard prices (2Q 2023: 8.6 %; 3Q 2022: 9.2 %). OUTLOOK Weak demand in the cartonboard and paper sector continues in almost all areas, as higher costs of living reduce general demand for consumer goods and the overall economic market environment remains uncertain. There is currently no sign of a market recovery, but the bottom seems to have been reached and destocking in the supply chain largely completed. Against this background and in view of sufficient capacities in the industry, significant machine downtime will continue to be necessary – at least also in the 4th quarter – in order to adjust production to market demand. This will primarily impact the division MM Board & Paper. Under these tightened general conditions, MM is focusing on safeguarding and gaining volume with reasonable margins. Our profit and cash protection program, which in addition to cost reductions in all areas aims at a significant reduction of working capital and capex cash-outs, will be consistently pursued and implemented as well as supplemented by targeted structural adjustment measures. Overall, the pressure to enhance competitiveness is steadily increasing. Our primary focus remains on recovering margins as quickly as possible and reducing net debt. With sustainable and innovative packaging solutions, MM is very well positioned to successfully manage the current difficult market situation. ----------------------------- Please find the detailed Press Release and the Report for the first three quarters of 2023 as well as the CEO Audio-Q&A-Webcast on our website: https://www.mm.group. Forthcoming results: March 12, 2024 Financial Results for 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: investor.relations@mm.group, Website: https://www.mm.group 07.11.2023 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: | 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: | 1766079 |
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