Stable performance in a volatile environment
Q1 2025 in brief
- Net sales remained at the previous year's level at EUR 1,002 million (EUR 1,004 million)
- Comparable net sales growth was -2% at Group level
- Reported EBIT was EUR 94 million (EUR 78 million), adjusted EBIT was EUR 98 million (EUR 99 million)
- Reported EPS was EUR 0.54 (EUR 0.35); adjusted EPS was EUR 0.59 (EUR 0.55)
- The impact of currency movements was EUR 11 million on the Group's net sales and EUR 1 million on EBIT
President and CEO’s review
Despite the increased uncertainty in the market, our financial performance in the first quarter of 2025 was in line with the previous year’s level. Customers and consumers turned more cautious during the quarter due to geopolitical events.
During the quarter, net sales and adjusted EBIT remained at the previous year’s level. We continued to make progress on our efficiency program, compensating for the negative impact from a decrease in sales volumes. By the end of Q1, we have achieved a total of EUR 87 million in cost savings and these have been essential to compensate for cost inflation.
Fiber Packaging delivered strong growth with continued margin improvement. Our focus on margin improvement in Flexible Packaging yielded improved results, although the uncertainty in the market impacted net sales. In Foodservice Packaging, the softened demand had a negative impact on performance. In North America, performance was impacted by timing of sales in retail tableware, with sales partially pulled from January to December, and a seasonally late Easter.
During the year, we have taken action in our three focus areas; growth through all levers, disciplined capital allocation as well as accountability and speed of execution. To reach our financial ambitions, we need to accelerate growth using all these levers. We will build on our strong relationships with our customers, focusing even more on global accounts, as well as regional and local accounts. Capital will be prioritized and allocated to the highest yielding and fastest growing segments. We made good progress on implementing clearer accountability throughout the organization, to remove complexity and increase speed of execution.
The segments will have full responsibility for delivering financial results. We have taken a number of steps to increase accountability, including the establishment of a standalone Fiber Packaging segment. Furthermore, the segments are planned to own sustainability related to products and operations, business development, human resources operations as well as local IT support. To drive competitiveness, we established a global procurement organization.
Uncertainty in the market increased again during the first quarter, due to the tariff situation. Our US business mostly operates on a local-for-local basis, with a minor share of imports of both raw materials and finished goods. We will actively monitor and adapt according to the development in the market, working closely with our customers and suppliers.
We remain focused on driving actions to improve our performance, both to create growth, manage our costs and improve our profitability. I have confidence in our team’s ability to deliver value to all our stakeholders.
Ralf K. Wunderlich
President and CEO
Source: Huhtamäki
