- 3rd quarter affected by annual maintenance downtime at Board & Paper
- Packaging divisions with continued solid performance
- Board & Paper despite significant volume increase affected by lower prices and higher costs
- Effects of targeted cartonboard price increases and consistent cost savings expected by 2025
Peter Oswald, MM CEO, comments: “Despite persistent consumer restraint in the European core markets the MM Group succeeded in maintaining sales in the 3rd quarter at the level of the two previous quarters. The MM Board & Paper division recorded a significant increase in volumes of around 18 % so far this year after the reduction of inventories in the supply chain and machine rebuilds in the previous year. As expected, 3rd quarter results were below both the previous quarter and the previous year’s 3rd quarter due to planned annual maintenance downtime at Board & Paper, which mainly affected the pulp mills in Poland and Finland. The costs of the annual shutdowns of MM Kwidzyn and MM Kotkamills were roughly EUR 25 million.
MM Food & Premium Packaging showed again a strong performance due to productivity increases and cost reductions, even though profitability was somewhat below last year.
MM Pharma & Healthcare Packaging could slightly improve profits, which were however held back by weak demand and extra costs from starting up new machines.
In the Board & Paper division, the earnings situation stayed weak despite the significant increase in volumes and cost reductions. This is primarily due to a substantial drop in average prices, along with rising costs in some areas like paper for recycling, wood and personnel. A comprehensive profit & cash protection programme has been in place for several quarters, with the majority of savings expected to materialise in 2025. Additionally, targeted price increases are being implemented, with their impact mainly anticipated next year.
For the 4th quarter, we expect from today’s perspective a stable development in both packaging divisions as well as Board & Paper returning to a slightly positive result.“
“Due to the ongoing weak consumption of daily consumer goods, subdued development in the end markets and continued underutilisation in the cartonboard industry are also anticipated in 2025. Against this background, we will continue to focus on strengthening our competitiveness by reducing costs and improving our quality, sustainability, and innovation. Particular attention will remain directed towards enhancing margins and ongoing cash generation. With the significantly optimised asset base over recent years and a solid financial position, MM is very well equipped to successfully meet the continuing challenges of the market with more sustainable and innovative packaging solutions.“, underlines Oswald.
Source: MM Group
