EQS-News: Mayr-Melnhof Karton AG: MM reports Annual Results 2025

EQS-News: Mayr-Melnhof Karton AG / Key word(s): Annual Results
   Mayr-Melnhof Karton AG: MM reports Annual Results 2025

   17.03.2026 / 07:45 CET/CEST
   The issuer is solely responsible for the content of this announcement.

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

   Successfully prevailed in a challenging environment

     • Successful ramp-up of the Group-wide Fit-For-Future programme for
       sustainable earnings improvement

          • Adjusted operating profit up 3 % (pro forma excl. TANN up 15 %)
          • Around EUR 70 million earnings contribution already in 2025
          • Sustainable earnings improvement of more than EUR 250 million
            expected in 2027

     • Balance sheet strengthened: higher equity ratio, lower net debt
     • Dividend increase of 11 % to EUR 2.00/share in line with new dividend
       policy
     • Further reduction of absolute CO[2] emissions by 11 %
     • Weak market conditions and structural overcapacity persist

   Group Key indicators - IFRS

   Consolidated, in millions of EUR       2025    2024      +/-
   Sales                               3,885.3 4,079.6   -4.8 %
   Adjusted EBITDA                       418.2   418.5   -0.1 %
   Adjusted operating profit             195.4   190.0   +2.8 %
   Adjusted operating margin (in %)      5.0 %   4.7 %   +37 bp
   Profit before tax                     145.7   114.3  +27.4 %
   Profit for the year                    77.0   110.5  -30.3 %
   Earnings per share (in EUR)            3.86    5.41 -28.7 % 
   Cash flow from operating activities   231.1   516.3  -55.2 %

   Peter Oswald, MM CEO, comments: “In 2025 the MM Group demonstrated a solid
   performance in a challenging market environment characterised by ongoing
   soft consumer demand and overcapacity in the European industry and
   succeeded in increasing its adjusted operating profit compared to the
   previous year.

   In the packaging sector, the Food & Premium Packaging division managed to
   keep its adjusted operating margin at a solid level, while the Pharma &
   Healthcare Packaging division recorded an encouraging increase. The Board
   & Paper division showed an improvement over the previous year, primarily
   driven by cost savings, even though the profit level remained
   unsatisfactory.

   Due to the imperative to structurally and sustainably strengthen
   profitability and competitiveness under ongoing challenging conditions, MM
   ramped up and accelerated its Group-wide Fit-For-Future transformation
   programme. By 2025, the programme had already contributed remarkable EUR
   70 million to adjusted operating profit. Management is confident that it
   will achieve an earnings uplift of over EUR 250 million in 2027 compared
   to 2024, excl. TANN and market-related effects, subsequent to expecting an
   increase of over EUR 150 million at programme launch.

   One-off effects at the operating profit level amounted to a total of EUR
   25.6 million in 2025 (2024: EUR 0 million). These include income from the
   sale of TANN Group of EUR 125.1 million, offset by an impairment
   requirement for assets at Board & Paper of EUR 70.5 million and expenses
   from Fit-For-Future restructurings of EUR 29.0 million.

   At EUR 77.0 million, the profit for the year was below the previous year's
   figure (EUR 110.5 million) as a result of significantly higher tax
   expense. In line with the revised dividend policy, which aims at a payout
   ratio of 40 % – 60 % of the profit for the year depending on net debt (net
   debt/equity 35 % – 55 %; net debt/adjusted EBITDA 1.5 – 2.5x), major
   planned investments, future prospects and the principle of dividend
   continuity, an 11 % increase in the dividend to EUR 2.00 per share (2024:
   EUR 1.80) will be proposed to the 32^nd Annual Shareholders' Meeting on
   April 29, 2026 for the financial year 2025.

   The Group's net debt could be reduced to EUR 913.7 million by the end of
   2025 (December 31, 2024: EUR 1,078.7 million). Net debt to equity was 43 %
   and the net debt to adjusted EBITDA ratio was 2.2 (December 31, 2024: 51
   %; 2.6).

   Regarding the non-financial performance, we are pleased to report an 11 %
   reduction in absolute CO[2] emissions. The main reasons for this are the
   continued switch to renewable energy sources for electricity procurement
   and energy efficiency measures. The number of occupational accidents has
   been reduced once again.

   Looking ahead, Food & Premium Packaging continues to pursue focused
   development at a high level, despite persistently cautious consumer
   behaviour. Pharma & Healthcare Packaging is expected to continue growing,
   particularly in the United States, while individual markets in Europe stay
   more subdued. In the Board & Paper division, market-related margin
   pressure remains challenging, but at the same time provides a strong
   incentive for further efficiency and quality improvements.“

   “MM's objective remains to uphold its cost, technology and innovation
   leadership in its core business cartonboard packaging, even under ongoing
   challenging market conditions, through an attractive, sustainable offering
   and a determined transformation.“, underlines Oswald.

   INCOME STATEMENT
   At EUR 3,885.3 million, the Group's consolidated sales were below the
   previous year's figure (2024: EUR 4,079.6 million) by 4.8 % or EUR 194.3
   million. The decline is mainly attributable to the sale of TANN Group at
   the beginning of June.

   The rise in adjusted operating profit by 2.8 % to EUR 195.4 million - pro
   forma excl. TANN +15.0 % - (2024: EUR 190.0 million) was primarily
   attributable to the MM Board & Paper division. The Group's adjusted
   operating margin increased to 5.0 % (2024: 4.7 %) and the adjusted return
   on capital employed amounted to 5.8 % (2024: 5.6 %). Adjusted EBITDA
   totalled EUR 418.2 million (2024: EUR 418.5 million), resulting in an
   adjusted EBITDA margin of 10.8 % (2024: 10.3 %).

   Financial income decreased to EUR 16.5 million (2024: EUR 27.1 million),
   mainly due to lower cash and interest rates. The decline in financial
   expenses from EUR -82.9 million to EUR -53.4 million is largely
   attributable to lower interest levels for variable-interest financing and
   further repayments. “Other financial result - net” changed to EUR -38.5
   million (2024: EUR -19.9 million), mainly owing to currency translations.

   Profit before tax rose to EUR 145.7 million (2024: EUR 114.3 million),
   this increase primarily reflecting the TANN divestment. Income tax expense
   was up to EUR 68.7 million (2024: EUR 3.8 million), driven mainly by the
   reversal of loss carryforwards in the Board & Paper division, after loss
   carryforwards capitalised in the previous year - including those from
   former Essentra Packaging - had reduced the expense. This results in an
   effective Group tax rate of 47.2 % (2024: 3.4 %), with the Group's
   standard tax rate amounting to approximately 22.0 % (2024: 19.0 %).

   Profit for the year therefore reached EUR 77.0 million (2024: EUR 110.5
   million).

   Cash flow from operating activities amounted to EUR 231.1 million (2024:
   EUR 516.3 million), primarily due to an increase in working capital.

   DEVELOPMENT IN THE 4^TH QUARTER
   The 4^th quarter was generally characterised by a continued subdued market
   demand. Consolidated sales of EUR 905.8 million were below the previous
   year's level, primarily as a result of the TANN divestment (4^th quarter
   2024: EUR 1,010.8 million). At EUR 43.5 million, adjusted operating profit
   was also below the previous year's level (4^th quarter 2024: EUR 63.7
   million), mainly due to this divestment and planned maintenance
   standstills at MM Board & Paper. The adjusted operating margin was 4.8 %
   (4^th quarter 2024: 6.3 %). Profit before taxes amounted to EUR -57.2
   million (4^th quarter 2024: EUR 43.4 million), chiefly resulting from an
   impairment loss of EUR 70.5 million at MM Board & Paper, and profit for
   the period was at EUR -89.5 million (4^th quarter 2024: EUR 58.2 million).
   Due to a reversal of loss carryforwards in the Board & Paper division,
   income tax expense amounted to EUR -32.3 million, compared to a positive
   level of EUR 14.8 million in the same quarter of the previous year
   following capitalisation of loss carryforwards, mainly from former
   Essentra Packaging. Cash flow from operating activities totalled EUR 251.8
   million (4^th quarter 2024: EUR 348.7 million).

   At EUR 38.4 million, adjusted operating profit of MM Food & Premium
   Packaging was below the previous year’s period (4^th quarter 2024: EUR
   48.8 million), mainly as a result of the TANN sale. The adjusted operating
   margin remained stable at 10.9 % (4^th quarter 2024: 11.2 %).

   MM Pharma & Healthcare Packaging recorded an increase in adjusted
   operating profit to EUR 8.0 million (4^th quarter 2024: EUR 3.0 million),
   primarily driven by efficiency improvements. The adjusted operating margin
   improved to 5.4 % (4^th quarter 2024: 2.2 %).

   The adjusted operating profit of MM Board & Paper at EUR -0.4 million was
   below the comparable value (4^th quarter 2024: EUR 11.9 million), chiefly
   as a result of planned maintenance stillstands as well as higher CO[2]
   compensation in the previous year. The adjusted operating margin therefore
   amounted to -0.1 % (4^th quarter 2024: 2.5 %).

   OUTLOOK
   The overall macroeconomic and industry-specific conditions remain highly
   challenging also in 2026. Subdued private consumption in Europe,
   geopolitical uncertainties, and persisting overcapacity in the cartonboard
   and paper sector will continue to shape the market environment.

   Against this backdrop, MM consistently pursues the objective of
   strengthening and further expanding competitiveness and profitability in
   the three divisions by focusing on cost, technology, and innovation
   leadership.

   At the core is the Group-wide Fit-For-Future transformation programme.
   Following a significant contribution to 2025, Management is confident that
   it will achieve an increase in earnings of over EUR 250 million in 2027
   compared to 2024 (excl. TANN and market-related effects). This clearly
   exceeds the initial expectation of over EUR 150 million at programme
   launch. In addition, selective structural adjustments to increase
   competitiveness will be continued.

   Our 2026 investments will again concentrate on strengthening our
   competitive position and further expanding the share of renewable
   energies, with the volume expected at around EUR 250 million. The annual
   maintenance standstills in the Board & Paper division are scheduled for
   the 3^rd and 4^th quarters and will again mainly affect the two
   cartonboard and paper mills in Poland and Finland. The associated expenses
   are currently estimated at around EUR 40 million (2025: approx. EUR 36
   million).

   In the environmental area, decarbonisation, water efficiency,
   biodiversity, and waste prevention continue to be our main priorities. In
   the social area, we are focusing on continuously improving occupational
   safety and accident prevention. At the same time, we intend to further
   intensify our close cooperation with customers and suppliers to develop
   innovative and sustainable solutions.

   Despite the ongoing challenging market environment, the MM Group is
   confident about the future. Our balanced positioning across three
   divisions, an attractive product portfolio, a well-invested asset base,
   and solid financing form a strong foundation for operating successfully
   and creating long-term value even under difficult conditions.

   MM is closely monitoring current developments in the Middle East and their
   possible impact on the Group. MM operates two packaging plants of the MM
   Food & Premium Packaging division in that region, which contributed around
   2 % to Group sales and around 6 % to the Group's adjusted EBITDA in 2025.
   Business interruptions are to be expected.

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

   The press release and a video statement of the Management Board are
   available on the internet under [1]www.mm.group.
   The Annual Report 2025 will be available as of April 8, 2026.

   Forthcoming results:
   April 28, 2026   Results for the 1^st quarter of 2026
    

   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: www.mm.group

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

   17.03.2026 CET/CEST This Corporate News was distributed by [2]EQS Group

   View original content: [3]EQS News

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

   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 Frankfurt (Basic Board),
                Munich, Stuttgart, Tradegate BSX; Vienna Stock Exchange
                (Official Market)
   EQS News ID: 2292164


    
   End of News EQS News Service


   2292164  17.03.2026 CET/CEST

   https://eqs-cockpit.com/cgi-bin/fncls.ssp?fn=show_t_gif&application_id=2292164&application_name=news&site_id=apa_ots_austria~~~18b544d0-9c71-4160-bd95-cc8b9aff9fbf

References

   Visible links
   1. https://eqs-cockpit.com/cgi-bin/fncls.ssp?fn=redirect&url=1ac0a3f9f83cbd8f6649959c1ca48dc2&application_id=2292164&site_id=apa_ots_austria~~~18b544d0-9c71-4160-bd95-cc8b9aff9fbf&application_name=news
   2. https://eqs-cockpit.com/cgi-bin/fncls.ssp?fn=redirect&url=f5d50dc7e8798b6eb177f7955e598e60&application_id=2292164&site_id=apa_ots_austria~~~18b544d0-9c71-4160-bd95-cc8b9aff9fbf&application_name=news
   3. https://eqs-cockpit.com/cgi-bin/fncls.ssp?fn=redirect&url=5e9ab2e6db96c997f5a25d252be4bf0c&application_id=2292164&site_id=apa_ots_austria~~~18b544d0-9c71-4160-bd95-cc8b9aff9fbf&application_name=news

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

print