Underlying profit improvements offset by adverse currency impact
Q3 2025 in brief
- Net sales decreased 5% to EUR 970.6 million (EUR 1,026.2 million)
- Comparable net sales growth at Group level was -1%
- Reported EBIT was EUR 91.6 million (EUR 95.1 million); adjusted EBIT was EUR 100.3 million including an adverse currency impact of EUR 4 million (EUR 102.4 million)
- Reported EPS was EUR 0.56 (EUR 0.57); adjusted EPS was EUR 0.62 (EUR 0.63)
- The impact of currency movements on the Group’s net sales was EUR -44 million and EUR -4 million on EBIT
Q1-Q3 2025 in brief
- Net sales decreased 3% to EUR 2,979.6 million (EUR 3,067.6 million)
- Comparable net sales growth at Group level was -1%
- Reported EBIT was EUR 231.5 million (EUR 277.3 million); adjusted EBIT was EUR 301.8 million including an adverse currency impact of EUR 5 million (EUR 306.7 million)
- Reported EPS was EUR 1.30 (EUR 1.53); adjusted EPS was EUR 1.83 (EUR 1.80)
- The impact of currency movements on the Group’s net sales was EUR -66 million and EUR -5 million on EBIT
- Capital expenditure was EUR 109.7 million (EUR 134.1 million)
- Free cash flow was EUR 136.9 million (EUR 160.2 million)
Ralf K. Wunderlich, President and CEO
Market conditions in the third quarter remained similar to what we saw during the first half of the year. Demand continued to be impacted by consumers’ cautiousness, geopolitical tensions and the US tariffs situation, with variations between markets and businesses. In addition, significant currency movements, particularly the weakened US dollar, had an adverse translational impact on our financial performance.
Third quarter net sales decreased mainly due to the negative impact from currency movements, and comparable net sales decreased by 1%. Sales prices and improved mix had a positive effect. While sales volumes decreased, we saw positive volume development in two of our segments. Our adjusted EBIT margin improved to 10.3% from 10.0% in the comparison period. Despite improving our underlying EBIT delivery, due to a 4% negative impact from currency movements, adjusted EBIT decreased by 2%.
During the third quarter three out of our four segments improved their performance. The strong performance in Flexible Packaging was supported by our continued turnaround activities of underperforming units and strong delivery of cost-out initiatives. The segment continued to improve its profitability. In Foodservice Packaging, our cost savings actions contributed to a higher adjusted EBIT, while comparable net sales remained at the previous year’s level. In North America, we continued to deliver volume growth, while unfavorable sales prices and mix, increased operational costs and a weaker dollar had a negative impact. The strong performance in Fiber Packaging continued supported by strong demand, and both net sales and adjusted EBIT increased.
While market conditions remained challenging, we continue to drive our strategic focus areas. During the quarter, our cash flow increased, supported by our strong focus on capital discipline. Our new organizational structure increases accountability and speed of execution. This, in combination with our clear growth strategy and disciplined capital allocation, positions us well to deliver value to our stakeholders.
