EANS-News: Mayr-Melnhof Karton AG Results for the first quarter of 2021
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Quarterly Report
Vienna -
* Ongoing good demand and capacity utilization
* Sales and result slightly below previous year
* Significant increase in input prices weighs on profit of MM Karton
* Price increases in both divisions in implementation
* Result of the 2nd quarter expected below 1st quarter
The Mayr-Melnhof Group recorded overall high capacity utilization with robust
demand for cartonboard packaging in the 1st quarter of 2021. Sales and operating
profit were slightly below the previous year's level. An increase in result in
the packaging division was offset by a significant decline in the cartonboard
division.
In the cartonboard division, the drastically rising prices of recovered paper
over the last few months, but also higher prices for energy, pulp, chemicals and
logistics, led to a significant cost inflation after last year's cost deflation.
For this reason, MM Karton has already increased the prices for recycled fiber-
based cartonboard in two steps, effective in the 2nd quarter and again in the
middle of the year. In the case of virgin fiber-based cartonboard, prices are
also to be increased in the middle of the year where there is no longer-term
validity. The cost increases for cartonboard, paper, inks and varnishes, which
are clearly noticeable by MM Packaging in the 2nd quarter, will mainly be passed
on from the middle of the year onwards.
The objective is to return in the second half of the year 2021 to the earnings
level of the 1st quarter in the Group's current business after an expected
decline in result in the 2nd quarter.
Group Key indicators - IFRS
Consolidated, in millions of EUR 1Q/2021 1Q/2020 +/-
Sales 641.3 646.6 -0.8 %
EBITDA 92.7 98.9 -6.3 %
Operating profit 61.2 64.6 -5.2 %
Operating margin (in %) 9.6 % 10.0 % -44 bp
Profit before tax 58.6 62.8 -6.7 %
Profit for the period 43.9 45.1 -2.8 %
Earnings per share (in EUR) 2.18 2.25
Consolidated sales of the Group amounted to EUR 641.3 million in the first three
months of 2021, almost reaching the previous year's level (1Q 2020: EUR 646.6
million).
At EUR 61.2 million, the operating profit was 5.2 % or EUR 3.4 million below the
comparative value of the previous year (1Q 2020: EUR 64.6 million). An increase
in the packaging division was contrasted by a decline in the cartonboard
division. In the previous year, one-off expenses in the amount of EUR -8.6
million were included, which were divided equally between the two divisions. The
Group's operating margin was at 9.6 % (1Q 2020: 10.0 %).
Financial income of EUR 0.5 million (1Q 2020: EUR 0.4 million) contrasted with
financial expenses of EUR -3.6 million (1Q 2020: EUR -2.1 million). "Other
financial result - net" amounted to EUR 0.5 million (1Q 2020: EUR -0.1 million).
Accordingly, profit before tax at EUR 58.6 million was 6.7 % below the previous
year's value (1Q 2020: EUR 62.8 million). Income tax expense amounted to EUR
14.7 million (1Q 2020: EUR 17.7 million), resulting in an effective Group tax
rate of 25.2 % (1Q 2020: 28.2 %).
Profit for the period decreased slightly from EUR 45.1 million to EUR 43.9
million.
OUTLOOK
With well-filled order books, we see growing demand for cartonboard and
packaging also in 2021. In view of the continuing increase in input prices for
fibers, energy, chemicals and logistics, the focus is currently on passing them
on. The objective is to return in the second half of the year 2021 to the
earnings level of the 1st quarter in the Group's current business after an
expected decline in result in the 2nd quarter.
In addition to the necessary price increases, our intensified investments in the
future and growth projects in several mills of MM Karton and MM Packaging got
off to a good start. As reported, the main emphasis is on improving cost
structures and increasing market penetration with sustainable, innovative fiber-
based packaging solutions. However, this is also accompanied by selective
adjustment and restructuring measures in the portfolio, as currently planned at
MM Graphia Bielefeld in the 2nd quarter. By relocating the production volume to
other MM Packaging sites in Germany, but also in Russia, Ukraine and Asia,
competitiveness is to be increased. This measure is expected to result in one-
off expenses of EUR 25 - 30 million in the 2nd quarter.
The closing of the Kotkamills acquisition in Finland continues to be expected in
the middle of the year and that of Kwidzyn in Poland in the 3rd quarter of 2021.
Please find the detailed Press Release and the Report for the first quarter of
2021 as well as the CEO Audio-Q&A-Webcast on our website: www.mayr-melnhof.com.
Forthcoming results:
August 19, 2021 Half-Year Results 2021
Further inquiry note:
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, Fax: +43 1 501 36-191195
E-Mail: investor.relations@mm-karton.com
Website: http://www.mayr-melnhof.com
end of announcement euro adhoc
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issuer: Mayr-Melnhof Karton AG
Brahmsplatz 6
A-1040 Wien
phone: +43 1 50 136
FAX:
mail: investor.relations@mm-karton.at
WWW: www.mayr-melnhof.com
ISIN: AT0000938204
indexes: ATX PRIME, ATX
stockmarkets: Wien
language: English