Huhtamäki Oyj's Interim Report January 1 - March 31, 2013: Net sales and EBIT increased
HUHTAMÄKI OYJ STOCK EXCHANGE RELEASE 25.4.2013 AT 08:30
- Net sales growth of 4% led by the foodservice acquisition in Asia completed in 2012
- Continued strong earnings improvement in the Foodservice Europe-Asia-Oceania segment
- Solid net sales growth and earnings development in the Molded Fiber business segment
- Unfavorable product mix and soft demand for films and flexible packaging products in Europe impacted the Group's earnings
- Further investments in North America to strengthen the Group's global foodservice position
|EUR million||Q1 2013||Q1 2012||FY 2012|
|EBIT margin, %||6.5||6.3||7.0|
|Free cash flow||-21.4||-10.9||102.6|
The Group's trading conditions remained relatively stable despite prevailing general economic uncertainty. Continued customer cautiousness had a negative impact on demand for consumer packaging. Order sizes remained small and customers focused on keeping inventory levels low. In addition, the prolonged winter period in Europe and in North America had a negative effect on the demand of seasonal products. Raw material prices remained stable.
The Group's net sales grew by 4%, driven by the impact of acquisitions completed in 2012. The Group's net sales were EUR 568 million (EUR 547 million). Reported net sales growth was EUR 22 million. Organic growth continued strong in the Molded Fiber business segment.
The Group's earnings before interest and taxes (EBIT) grew. EBIT was EUR 37 million (EUR 34 million). Earnings development was strongest in the Foodservice Europe-Asia-Oceania business segment, mainly resulting from continued good progress in the UK and Russia, as well as contribution of the acquired units in Asia.
The Group's free cash flow was EUR -21 million (EUR -11 million). Return on investment (ROI) was 12.9% (10.5%) and return on equity (ROE) was 15.4% (11.8%).
The purchase of a manufacturing facility in Batavia, Ohio, in the United States was completed on January 31, 2013, in order to begin setting up a new state of the art manufacturing and distribution unit. The initiation of efficiency improving measures within the Foodservice Europe-Asia-Oceania business segment and a cost savings program within the Films business segment were announced on March 4, 2013. As detailed action plans were not finalized by the end of the first quarter, the measures had no effect on the Group's financial figures.
Outlook for 2013
The Group's trading conditions are expected to remain relatively stable during 2013. The good financial position and ability to generate a positive cash flow will enable the Group to further address profitable growth opportunities. Capital expenditure is expected to be above EUR 100 million. A significant part of the investments is due to the increases in foodservice disposables capabilities within the North America segment.
Financial Reporting Schedule in 2013
Huhtamaki will publish the interim report for January 1 - June 30, 2013 on July 19 and January 1 - September 30, 2013 on October 25.
This is a summary of Huhtamaki's Interim Report January 1 - March 31, 2013. 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
Huhtamaki Group is a leading manufacturer of consumer and specialty packaging with 2012 net sales totaling EUR 2.3 billion. Foodservice and consumer goods markets are served by approximately 14,400 people in 64 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 NASDAQ OMX Helsinki Ltd. Additional information is available at www.huhtamaki.com.get_app Huhtamaki Oyj Interim Report January 1 - March 31, 2013