Value creation

Last updated: March 1, 2024

Huhtamaki’s ambition is to be the first choice in sustainable packaging solutions. With our strategy focused on four pillars we aim to deliver sustainable profitable growth. As a publicly listed company, Huhtamaki is committed to earning profit for its shareholders. Huhtamaki has several financial long-term ambitions. The most important of these are our growth ambition of 5-6% annual comparable growth, 10-12% adjusted EBIT margin and adjusted return on investment (ROI) of 13-15%. In addition, our ambition is to have net debt/adjusted EBITDA of 2–3 and pay 40–50% of our profit as dividend.

Huhtamaki’s economic responsibility in 2023

In 2023, the economic value generated by the Group was EUR 1,539 million (EUR 1,511 million) of which EUR 1,107 million (EUR 1,038 million) was distributed to stakeholders and EUR 432 million (EUR 473 million) was retained in the Group for operational development and further growth. The Group achieved -2% organic and no acquisitive growth. Adjusted EBIT margin, excluding items affecting comparability (IAC) of EUR -11.7 million, was 9.4%. Dividends paid to shareholders correspond to a 40% payout ratio (of 2022 profits).

Huhtamaki as a tax payer

Huhtamaki wants to make a positive contribution to the world and is committed to paying all taxes and complying with other related obligations according to local laws and regulations. Moreover, the Huhtamaki values, the requirements of our Code of Conduct and the Code of Conduct for Huhtamaki Suppliers transcend national boundaries and complement the framework for our business operations. Huhtamaki’s Public Tax Strategy is available on our website.

One of our operating principles is to ensure the predictability and optimization of taxation. In addition to ensuring that taxes are paid correctly in all locations, we also seek to ensure that we do not pay excess taxes and that we capitalize on the tax deductions enabled by local tax regulations. The Group’s tax expenses in 2023 increased to 87 EUR million (EUR 67 million) and paid taxes amounted to EUR 84 million (EUR 71 million). The corresponding tax rate was 28% (19%).

In intercompany business transactions, we comply with OECD guidelines on transfer pricing. Intersegment net sales were EUR 10 million (EUR 21 million), corresponding to 0.2% of the Group’s net sales. Our business decisions are made with our strategy, financial ambitions, sustainability and commercial environment in mind, all while striving to better serve our customers. While taxation is one factor to be considered, it is not a dominant factor.

 

 Direct economic value generated and distributed

EUR million		2023	2022	2021
Customers	Net sales	4,169	4,479	3,575
Suppliers	Purchases	2,630	2,968	2,305
	Economic value generated	1,539	1,511	1,270
Personnel	Personnel expenses	846	820	719
Shareholders	Dividends	105	98	96
Debt investors	Net financial expenses	69	53	33
Public sector	Taxes	87	67	60
	Economic value distributed	1,107	1,038	899
	Economic value retained in the Group	432	473	371