- Results below previous year’s period as expected
- Sales growth due to acquisitions of the previous year in the pharma packaging sector
- Capex- and market-related significantly lower volume at MM Board & Paper
- High customer inventory levels and weaker purchasing power weigh on demand
Peter Oswald, MM CEO, comments: “As expected, the MM Group recorded a restrained start into the year in the MM Board & Paper division in the 1st quarter of 2023 against the background of a slow destocking of high customer inventory levels as well as inflation-related restrained demand. In addition to the planned capex-related shutdowns in the cartonboard mills Frohnleiten and Neuss, considerable market-related downtimes were necessary. In the division MM Packaging, demand tended to be weaker in the first months, but was overall still resilient. The significant growth of MM Packaging compared to the 1st quarter of the previous year results mainly from the inclusion of last year’s acquisitions in the pharma packaging sector, Essentra Packaging and Eson Pac. Structural adjustments were continued and affected one packaging site in Germany.
As a result of ongoing weaker demand and the implementation of major investments in our cartonboard mills Frohnleiten, Neuss and Kolicevo in the first three quarters, a decline in volume and result is foreseeable in the Board & Paper division for 2023, as already indicated. At MM Packaging, the focus is primarily on the integration of the Ex-Essentra Packaging business with cost optimization and structural adjustments.
Accordingly, 2023 will be a transition year for MM Board & Paper on the one hand and an integration year for MM Packaging on the other hand. While profitability was above the trend line in 2022, it is expected to be below in 2023.”
Source: MM Group
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