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% comparable growth and our profitability ambition of 10-12% Adjusted EBIT margin. In addition, our ambition is to have Net debt/Adjusted EBITDA of 2–3 and pay 40–50% of our profit as dividend to our shareholders and adjusted return on investment (ROI) of 13-15%.
Huhtamaki’s economic responsibility in 2022
In 2022, the economic value generated by the Group was EUR 1,511 million (EUR 1,270 million) of which EUR 1,038 million (EUR 899 million) was distributed to stakeholders and EUR 473 million (EUR 371 million) retained in the Group for operational development and further growth. The Group achieved 15% organic and 5% acquisitive growth. Adjusted EBIT margin, excluding items affecting comparability (IAC) of EUR 10.2 million, was 8.8%. Dividends paid to shareholders correspond to a 45% payout ratio (of 2021 profit).
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 tax deductions enabled by local tax regulations. The Group’s tax expenses in 2022 increased to 67 EUR million (EUR 60 million) and paid taxes amounted to EUR 71 million (EUR 83 million). The corresponding tax rate was 19% (23%).
In intercompany business transactions, we comply with the OECD guidelines on transfer pricing. Intersegment net sales were EUR 21 million (EUR 27 million), corresponding to 0,5% of the Group’s net sales. Our business decisions are made keeping our strategy, financial ambitions, sustainability and commercial environment in mind whilst at the same time aiming to serve our customers better. While taxation is one factor to be considered, it is not a dominant factor.