Huhtamäki Oyj's Interim Report January 1 - June 30, 2011: Net sales growth accelerated


- Healthy 5% net sales growth in constant currencies driven by emerging markets 

- Strong performance continued in the Flexible Packaging segment 

- Raw material price pressure, certain short term operational issues and adverse currency translations affected EBIT 

- Earnings per share (EPS) were EUR 0.45 


Key figures

EUR million H1 2011 H1 2010 Q2 2011 Q2 2010 2010  
Continuing operations            
Net sales 1,006.0 970.2 528.0 522.3 1,951.8  
EBIT 67.4 73.2 40.0 44.3 134.3  
EBIT margin % 6.7 7.5 7.6 8.5 6.9  
EPS (EUR) 0.45 0.47 0.28 0.30 0.92  
Including discontinued operations divested in 2010    
EPS (EUR) 0.45 0.51 0.28 0.32 1.02  
ROI % 11.2 10.0     12.0  
Free cash flow -19.2 44.3 12.4 37.2 112.9  
Net debt 330.5 378.0     269.9  
Gearing % 0.40 0.46     0.32



The Group's trading conditions were stable during the first half of the year. Demand for consumer packaging remained robust within emerging markets and the Group's net sales growth accelerated towards the end of the reporting period. Raw material price levels remained high throughout the reporting period and currencies moved adversely in the second quarter. The Group's trading conditions have been specified in the outlook for 2011.

As a result of favorable volume development, especially within the Flexible Packaging segment, Group net sales grew within the reporting period compared to the corresponding period in 2010. In constant currencies the Group's net sales grew by a healthy 5% in the reporting period. Emerging markets' net sales growth was 14%. Adverse currency translations, especially in North America, had a significant negative impact in reported net sales development in the second quarter.

Group earnings before interest and taxes (EBIT) for the reporting period were EUR 6 million lower compared to the corresponding period in 2010. Cost pressure from high raw material costs continued during the first half of the year. Net sales growth and continued cost containment were not sufficient to entirely offset the high costs caused by raw material prices and certain short term operational issues in the second quarter. Currency translations also had a negative impact on earnings during the second quarter.

The Group's free cash flow turned positive during the second quarter, but was EUR -19 million in the reporting period (EUR 44 million). Return on investment (ROI) was 11.2% (10.0%).

Outlook for 2011

The Group's trading conditions are expected to remain similar to the trading conditions experienced earlier in 2011. Raw material prices are not expected to increase further. Financial charges and tax expenses are expected to increase from the exceptionally low level in 2010.

The good financial position and ability to generate a positive cash flow will enable the Group to address profitable growth opportunities. Capital expenditure is expected to be around EUR 100 million.

Financial reporting schedule in 2011

Huhtamaki will publish the interim report for January 1 - September 30, 2011 on October 20.

This is a summary of Huhtamaki's interim report for January 1 - June 30, 2011. The complete report is attached to this release and is also available at the company website at


For further information, please contact:

Jukka Moisio, CEO, tel. +358 10 686 7801

Timo Salonen, CFO, tel. +358 10 686 7880



Group Communications


Huhtamaki Group is a leading manufacturer of consumer and specialty packaging with 2010 net sales totaling EUR 2 billion. Foodservice and consumer goods markets are served by approximately 12,000 people in 53 manufacturing units and several sales offices in 31 countries. The parent company, Huhtamäki Oyj, has its head office in Espoo, Finland and its share is quoted on the NASDAQ OMX Helsinki Ltd. Additional information is available at

get_app Huhtamäki Oyj Interim Report January 1-June 30, 2011