March, 28, 2017
Closer look at Huhtamaki net sales
Huhtamaki’s net sales in 2016 were € 2.9 billion. Comparable growth, which includes volume growth plus changes in prices and product mix was 4% in total and 7% in emerging markets. Approx. 70% of our net sales is generated in markets we define as growth markets. In our business, growth markets include both the U.S. and emerging markets. Sales split between these two is relatively even.
What are the largest countries in terms of net sales for Huhtamaki? Huhtamaki’s top 10 countries by net sales include 5 developing and 5 developed countries (see picture below). The U.S. is clearly the largest, with 2016 net sales at approx. € 1 billion, a bit more than one third of the Group. Other developed countries among the top 10 are Germany, UK, Australia and the Netherlands, and developing countries include India, China, Thailand, Russia and United Arab Emirates. Developing countries in the list falling behind top 10 include e.g. Vietnam, Poland, Czech Republic, Brazil, Egypt and South Africa.
In 2016, our capital expenditure was approx. € 200 million, majority being investments in growth. We’re expecting the same investment level to continue in 2017, and are currently building new capacity in the U.S., India, China and Egypt – most of them countries you already recognize from the previous chapter. We announced our most recent greenfield project, paper cup manufacturing unit to Kiev, Ukraine, early March. We have been present in Ukraine for 15 years with a sales office, and are now looking forward to the additional growth opportunities local manufacturing provides. In this case, as in many others, the request for local manufacturing originated from a key customer, who will also be the anchor customer for the unit to start with. With population of 36 million, Ukraine provides a growing market for foodservice packaging, a solid operating environment, and a good location to service the neighboring countries.
We’ll finalize our Q1 17 IR program with a two-day roadshow in Paris this week. Next time, we’ll be in touch with investors on April 27th, when we’ll publish our Q1 17 interim results and have our Annual General Meeting. Looking forward to see many of you at the AGM!