EQS-News: Mayr-Melnhof Karton AG: MM reports results for the first quarter of 2023

EQS-News: Mayr-Melnhof Karton AG / Key word(s): Quarter Results
   Mayr-Melnhof Karton AG: MM reports results for the first quarter of 2023

   25.04.2023 / 08:00 CET/CEST
   The issuer is solely responsible for the content of this announcement.

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     • 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

   Group Key indicators - IFRS

   Consolidated, in millions of EUR 1Q/2023 1Q /2022     +/-
   Sales                            1,122.1  1,060.4  +5.8 %
   EBITDA                             116.6    155.0 -24.8 %
   Operating Profit                    61.6    111.1 -44.6 %
   Operating margin (in %)            5.5 %   10.5 % -499 bp
   Profit before tax                   49.0    103.6 -52.8 %
   Profit for the period               34.9     79.5 -56.1 %
   Earnings per share (in EUR)         1.71     3.95        

   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
   1^st 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 1^st 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.”

   INCOME STATEMENT

   The Group’s consolidated sales increased by EUR 61.7 million or 5.8 % to
   EUR 1,122.1 million (1Q 2022: EUR 1,060.4 million). This increase results
   mainly acquisition-related from the division MM Packaging.

   At EUR 61.6 million, operating profit was EUR 49.5 million below the
   comparable figure of the previous year (1Q 2022: EUR 111.1 million). This
   decline is primarily due to market- and rebuild-related downtimes in the
   MM Board & Paper division and restructuring expenses in the amount of EUR
   15.5 million in the Packaging division. The Group’s operating margin was
   at 5.5 % (1Q 2022: 10.5 %).

   Financial income amounted to EUR 1.3 million (1Q 2022: EUR 1.6 million).
   The increase in financial expenses from EUR -7.5 million to EUR -10.8
   million is mainly due to higher interest expenses for Schuldscheindarlehen
   and financing of the accomplished acquisitions and organic growth
   projects. “Other financial result - net” changed from EUR -1.6 million to
   EUR -3.1 million, in particular owing to currency translation.

   Profit before tax of EUR 49.0 million was EUR 54.6 million lower than the
   previous year’s value (1Q 2022: EUR 103.6 million). Income tax expense
   amounted to EUR 14.1 million (1Q 2022: EUR 24.1 million), resulting in an
   effective Group tax rate of 28.7 % (1Q 2022: 23.3 %).

   Profit for the period decreased by EUR 44.6 million to EUR 34.9 million
   (1Q 2022: EUR 79.5 million). 

   OUTLOOK
   Demand for our cartonboard and paper products is noticeable restrained due
   to continued high customer inventory levels and the increasingly
   restraining effect of inflation on private consumption. Therefore, in
   addition to the planned capex-related machine downtimes, there will also
   be market-related downtimes in the MM Board & Paper division in the 2^nd
   quarter. The development of price levels continues to be heterogeneous by
   product area. In addition, the weakening in private consumption is also
   reflected in several sales markets of MM Packaging. The increased
   investment activity to strengthen the competitiveness and growth ability
   of MM is being implemented according to plan, as well as the integration
   of last year’s acquisitions in the pharma packaging sector. Under the
   tightened market conditions, structural adjustment measures and cost
   optimizations will be pushed forward with both a short- and medium-term
   perspective in order to ensure a good long-term development. As already
   indicated, 2023 will be a transition year for MM Board & Paper and an
   integration year for MM Packaging with profitability below the trend line
   after being above in 2022.

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   Please find the detailed Press Release and the Report for the 1^st quarter
   of 2023 as well as the CEO Audio-Q&A-Webcast on our website:
   https://www.mm.group.

   Forthcoming results:
   August 10, 2023   Half-Year Results 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: [1][email protected], Website: [2]https://www.mm.group

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   25.04.2023 CET/CEST This Corporate News was distributed by EQS Group AG.
   www.eqs.com

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   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, Tradegate Exchange; Vienna Stock
                Exchange (Official Market)
   EQS News ID: 1615605


    
   End of News EQS News Service


   1615605  25.04.2023 CET/CEST

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