• Q2 ahead of Q2 2023
• Half-year financial results below previous year due to pricing
• Cash flow significantly improved
• Strong volume increase in Board & Paper
• For more transparency Packaging from now on reported as two divisions:
MM Food & Premium Packaging and MM Pharma & Healthcare Packaging
• Solid performance in Packaging divisions
• Considerable reduction of carbon footprint vs. 1st HY 2023
• Persisting consumer restraint on end markets in line with overall weak economy
• Q3 impacted by annual maintenance downtime at Board & Paper
Peter Oswald, MM CEO, comments: “The MM Group succeeded in improving its adjusted EBITDA and adjusted operating profit in the 2 nd quarter compared to both the previous two quarters as well as last year’s 2 nd quarter. The consistent execution of the profit & cash protection programme led to a significant increase in cash flow from operating activities and free cash flow. At the same time, the Group’s financial leverage remained largely constant.
In the Board & Paper division, we saw an improvement in market demand following the reduction of high inventories in the supply chain. Also, our improved products after the machine rebuilts were well received by our customers. This led to a significant increase in sales volumes of around 18 %. Despite selective price increases in the 2 nd quarter, average prices were still substantially below last year, resulting in lower sales. At the same time, some costs like paper for recycling and personnel costs rose again in the 2 nd quarter. Due to the comprehensive cost protection programme, Board & Paper managed to turn the adjusted operating profit again back into positive territory in the 2nd quarter after four quarters of operational losses.
Packaging, which has shown a consistently solid performance overall, will from now on be reported as two divisions to increase transparency: MM Food & Premium Packaging and MM Pharma & Healthcare Packaging, since pharma packaging pursues a different business model and is perceived as highly specialised within the packaging industry. Also, it comprises leaflets and labels on top of folding cartons.”
“Due to the ongoing weak economy in the main market of Europe and persistent restrained consumer spending on daily consumer goods, we expect only a slow development in the end markets and continued underutilisation in the cartonboard industry. In the 3rd quarter, annual maintenance downtime at our pulp mills in Kwidzyn and Kotkamills will affect Board & Paper results while we assume continuity for both of the packaging divisions.”, underlines Oswald.
Source: MM
