EQS-News: Mayr-Melnhof Karton AG: MM reports Annual Results 2022

EQS-News: Mayr-Melnhof Karton AG / Key word(s): Annual Results
   Mayr-Melnhof Karton AG: MM reports Annual Results 2022

   14.03.2023 / 08:00 CET/CEST
   The issuer is solely responsible for the content of this announcement.

   ══════════════════════════════════════════════════════════════════════════

   MM Group grows strongly – strategic moves show success

     • Sales EUR 4.7 billion (+53 %)
     • Operating profit EUR 510 million (+89 %)
     • Profit for the year EUR 345 million (+81 %)
     • Solid financing: Net debt/EBITDA 2.0
     • Dividend proposal: EUR 4.20/share (+20 %)
     • Weak order situation in 1Q 2023

   Group Key indicators - IFRS

   Consolidated, in millions of EUR    2022    2021     +/-
   Sales                            4,682.1 3,069.7 +52.5 %
   EBITDA                             729.9   421.0 +73.4 %
   Operating Profit                   510.3   269.6 +89.3 %
   Operating margin (in %)           10.9 %   8.8 % +212 bp
   Profit before tax                  466.9   244.5 +90.9 %
   Profit for the year                345.2   190.7 +81.0 %
   Earnings per share (in EUR)        17.19    9.46        

   Peter Oswald, MM CEO, comments: “The MM Group grew significantly in terms
   of profit and sales, both organically and through acquisitions, in a
   macroeconomically and geopolitically challenging environment in the
   financial year 2022. Demand for our natural, recyclable packaging products
   made of renewable raw materials was dynamic for most of the year and
   customers appreciate our investments in competitive sites, innovation and
   sustainability. The energy and raw material crisis confronted MM with
   particular challenges, which were overall successfully managed. Sales
   price adjustments compensated for the severe rise in energy and raw
   material costs. In addition, we succeeded in ensuring continuous supply to
   our customers despite unstable supply chains. 

   The acquisitions of Essentra Packaging and Eson Pac, completed in 2022,
   position MM as a global player in secondary pharma packaging and
   contribute to more resilience and growth throughout our business. Together
   with the two acquisitions of the previous year in the Board & Paper
   division, MM Kwidzyn and MM Kotkamills, they are part of the
   transformation of MM to increase value and growth abilities of the MM
   Group through acquisitions and operational optimization.

   Despite an increasing market weakness in cartonboard and paper from the
   end of the 3^rd quarter onwards, due to the well-stocked supply chain and
   thus considerable market-related machine downtime in this area, the MM
   Group recorded a strong overall increase in profit in 2022. The growth in
   operating profit from EUR 269.6 million to EUR 510.3 million mainly
   results from the division MM Board & Paper due to improved operations as
   well as the full-year inclusion of the previous year’s acquisitions. In
   contrast, the operating profit of MM Packaging decreased due to one-off
   expenses despite a favorable organic growth of approximately 5 %.

   In line with the good profit development and long-term dividend policy, a
   dividend increase to EUR 4.20 per share (2021: EUR 3.50) for the financial
   year 2022 will be proposed to the 29^th Annual Shareholders’ Meeting on
   April 26, 2023.”

   INCOME STATEMENT

   The Group’s consolidated sales reached EUR 4,682.1 million, which is 52.5
   % or EUR 1,612.4 million above the previous year’s figure (2021: EUR
   3,069.7 million). On the one hand, this rise resulted from the previous
   year's acquisitions in the MM Board & Paper division as well as the
   company purchases of MM Packaging in the reporting year and, on the other
   hand from passing on costs through higher prices.

   At EUR 510.3 million, an operating profit of EUR 240.7 million above the
   previous year (2021: EUR 269.6 million) was achieved. The significant rise
   is attributable to the division MM Board & Paper. One-off expenses in this
   division resulted in particular from the reorganization of production at
   the Slovenian cartonboard mill MM Kolicevo, which had to be recognized at
   an amount of EUR 24.6 million in the 4^th quarter. In the division MM
   Packaging, one-off effects mainly related to the incidental transaction
   costs for Essentra Packaging and Eson Pac and the sale of the Russian
   sites in the amount of EUR 15.0 million as well as expenses connected to
   the exit from the Russian market totaling EUR 32.5 million contrasted with
   income from the sale of the packaging sites in Russia in the amount of EUR
   20.1 million. In the previous year, one-off expenses from the initial
   consolidation of MM Kwidzyn and MM Kotkamills in the amount of EUR 26.3
   million as well as from adjustment and restructuring measures in the
   Packaging division in the amount of EUR 20.1 million had to be recognized.
   This was offset by one-off income from the sale of the Eerbeek and
   Baiersbronn virgin fiber-based cartonboard mills in the amount of EUR 46.1
   million (after incidental transaction costs). The Group's operating margin
   therefore increased to 10.9 % (2021: 8.8 %), the return on capital
   employed to 16.3 % (2021: 12.8 %). EBITDA rose by EUR 308.9 million to EUR
   729.9 million (2021: EUR 421.0 million), the EBITDA margin reaching 15.6 %
   (2021: 13.7 %).

   Financial income amounted to EUR 4.3 million (2021: EUR 3.3 million). The
   increase in financial expenses from EUR -24.4 million to EUR -32.1 million
   primarily results from the issuance of Schuldschein loans and
   Namensschuldverschreibungen in the previous year to finance the
   acquisitions and organic growth projects. "Other financial result - net"
   changed to EUR -15.5 million (2021: EUR -4.0 million), in particular owing
   to foreign exchange effects.

   Accordingly, profit before tax rose by EUR 222.4 million to EUR 466.9
   million, after EUR 244.5 million in the previous year. Income tax expenses
   totaled EUR 121.7 million (2021: EUR 53.8 million), resulting in an
   effective Group tax rate of 26.1 % (2021: 22.0 %).

   Profit for the year thus increased by EUR 154.5 million to EUR 345.2
   million (2021: EUR 190.7 million).

   DEVELOPMENT IN THE 4^TH QUARTER

   The development of the 4^th quarter was characterized by a strong decline
   in demand in the MM Board & Paper division due to high customer
   inventories as well as by a stable demand in the MM Packaging division.
   Consolidated sales of EUR 1,231.7 million were mainly price- and
   acquisition-related above last year's period (4^th quarter 2021: EUR 962.6
   million).

   The Group's operating profit decreased to EUR 58.1 million (4^th quarter
   2021: EUR 92.4 million) due to market conditions and one-off effects. The
   operating margin totaled 4.7 % (4^th quarter 2021: 9.6 %). Profit before
   tax amounted to EUR 50.1 million (4^th quarter 2021: EUR 82.1 million),
   net profit for the period to EUR 30.0 million (4^th quarter 2021: EUR 62.3
   million).

   MM Board & Paper recorded a capacity utilization of 75 % after 97 % in the
   4^th quarter of the previous year owing to necessary market-related
   downtimes. Due to acquisitions, the operating profit of the division
   reached EUR 62.8 million after EUR 33.4 million, whereas one-off expenses
   resulting from the concentration of production on the larger machine at
   the Kolicevo mill had to be recognized. The operating margin reached 10.1
   % (4^th quarter 2021: 5.9 %).

   With a solid volume development, the operating profit of MM Packaging
   amounted to EUR -4.7 million (4^th quarter 2021: EUR 59.0 million) due to
   one-off effects. In particular, expenses in connection with the exit from
   the Russian market as well as structural adjustment measures led to a
   negative effect on results. The operating margin was -0.7 % (4^th quarter
   2021: 13.7 %).

   OUTLOOK

   Geopolitical and macroeconomic uncertainties continue to determine our
   operating environment. While some input prices are still declining, the
   destocking process has also progressed since the beginning of the year as
   in the last months of the previous year. In the MM Board & Paper division,
   market-related machine downtimes are necessary in the 1^st quarter. As
   announced, in the first three quarters there will also be longer machine
   downtimes because of major investments at the Frohnleiten, Neuss and
   Kolicevo cartonboard mills. Prices are predominantly decreasing.
   Therefore, as expected, a significant decline in volume and results is
   foreseeable in the Board & Paper division in the current year.

   In the division MM Packaging, demand has weakened slightly in the first
   two months, but shows resilience. Structural adjustment and cost
   optimization measures will be further pursued.

   Irrespective of the transition year in the MM Board & Paper division, our
   business model with a focus on sustainable packaging for everyday consumer
   goods remains resilient and attractive in the long term.

   The balance sheet of MM and ongoing cash generation are solid. Our
   investment activity will remain evelated in 2023 in order to further
   strengthen the competitiveness and growth capacity of the MM Group.
   Especially in the course of the modernization of three cartonboard
   machines as well as value-enhancing, technological innovations in the area
   of pharmaceutical and beauty packaging, we expect a capex volume of more
   than EUR 400 million this year. The objective remains to continue our
   growth with sustainable and innovative consumer goods packaging in the
   long term with an attractive return on capital employed.

   -----------------------------

   The press release and a video statement by the Management Board are
   available on the internet under //www.mm.group.

   The Annual Report 2022 will be available as of April 5, 2023.

    

   Forthcoming Results:

   April 25, 2023  Results for the 1^st quarter of 2023

    

   For further information, please contact:
   Stephan Sweerts-Sporck, Investor Relations, Mayr-Melnhof Karton AG,
   Brahmsplatz 6, A-1040 Vienna, Tel.: +43 1 501 36-91180,
   E-Mail: [email protected], Website: https://www.mm.group

   ══════════════════════════════════════════════════════════════════════════

   14.03.2023 CET/CEST This Corporate News was distributed by EQS Group AG.
   www.eqs.com

   ══════════════════════════════════════════════════════════════════════════

   Language:    English
   Company:     Mayr-Melnhof Karton AG
                Brahmsplatz 6
                1040 Wien
                Austria
   Phone:       0043 1 501 36 91180
   Fax:         0043 1 501 36 91391
   E-mail:      [email protected]
   Internet:    www.mm.group
   ISIN:        AT0000938204
   WKN:         93820
   Indices:     ATX
   Listed:      Regulated Unofficial Market in Berlin, Frankfurt (Basic
                Board), Munich, Stuttgart; Vienna Stock Exchange (Official
                Market)
   EQS News ID: 1581345


    
   End of News EQS News Service


   1581345  14.03.2023 CET/CEST

OTS-ORIGINALTEXT PRESSEAUSSENDUNG UNTER AUSSCHLIESSLICHER INHALTLICHER VERANTWORTUNG DES AUSSENDERS - WWW.OTS.AT |

print