Huhtamäki Oyj's Interim Report January 1 - March 31, 2011: Continued net sales growth supports EPS stability
HUHTAMÄKI OYJ STOCK EXCHANGE RELEASE 20.4.2011 AT 08:30
- Growth driven by the Flexible Packaging and Films segments
- Effective management of escalating raw material costs
- Continued tight cost control
- Earnings per share (EPS) maintained at the same level as in 2010 from continuing operations
| Key figures | ||||
| EUR million | Q1 2011 | Q1 2010 | 2010 | |
| Continuing operations | ||||
| Net sales | 478.0 | 447.9 | 1,951.8 | |
| EBIT | 27.4 | 28.9 | 134.3 | |
| EBIT margin % | 5.7 | 6.4 | 6.9 | |
| EPS (EUR) | 0.17 | 0.17 | 0.92 | |
| Including discontinued operations divested in 2010 | ||||
| EPS (EUR) | 0.17 | 0.19 | 1.02 | |
| ROI % | 12.0 | 9.5 | 12.0 | |
| Free cash flow | -31.6 | 7.1 | 112.9 | |
| Net debt | 295.0 | 371.0 | 269.9 | |
| Gearing % | 0.35 | 0.49 | 0.32 | |
Overview
Demand for consumer packaging remained robust during the reporting period and the Group's trading conditions were favorable except in North America. Raw material price levels remained high. Group net sales grew within the reporting period compared to the corresponding period in 2010 as a result of favorable volume development, especially within the Flexible Packaging and Films segments.
Group earnings before interest and taxes (EBIT) decreased slightly during the reporting period compared to the corresponding period in 2010. Raw material cost pressure continued. Although margins were managed successfully in all segments, this was not sufficient to offset the earnings decline in North America. Earnings per share (EPS) remained stable compared to the EPS from continuing operations in the corresponding period in 2010.
The Group's free cash flow in the reporting period was EUR -32 million (EUR 7 million). Cash flow generation in the reporting period was adversely impacted by high raw material costs and inventory build-up in preparation for the approaching peak season. Return on investment (ROI) was 12.0% (9.5%) remaining at the same level as in the end of 2010.
Outlook for 2011
The improvement in the Group's trading conditions, which was visible in the second half of 2010, is expected to continue during 2011. However, market conditions in North America remain uncertain. Pressure on profit margins is likely to continue due to increasing raw material costs, especially the price of plastics. 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 - June 30, 2011 on July 21 and January 1 - September 30, 2011 on October 20.
This is a summary of Huhtamaki's interim report for January 1 - March 31, 2011. The complete report is attached to this release and is also available at the company website at www.huhtamaki.com.
For further information, please contact:
Jukka Moisio, CEO, tel. +358 10 686 7801
Timo Salonen, CFO, tel. +358 10 686 7880
HUHTAMÄKI OYJ
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 www.huhtamaki.com.
get_app Huhtamäki Oyj Interim Report January 1 - March 31, 2011