HUHTAMÄKI OYJ INTERIM REPORT
Q1 2024 in brief
- Net sales decreased 4% to
EUR 1,004 million (EUR 1,047 million ) - Comparable net sales growth was -2% at Group level
- Reported EBIT was
EUR 78 million (EUR 87 million ); adjusted EBIT wasEUR 99 million (EUR 92 million ) - Reported EPS was
EUR 0.35 (EUR 0.47 ); adjusted EPS wasEUR 0.55 (EUR 0.51 ) - The impact of currency movements was
EUR -17 million on the Group's net sales andEUR -2 million on EBIT
Key figures
EUR million | Q1 2024 | Q1 2023 | Change | 2023 |
Net sales | 1,003.9 | 1,047.1 | -4% | 4,168.9 |
Comparable net sales growth | -2% | 2% | -2% | |
Adjusted EBITDA1 | 149.0 | 140.5 | 6% | 590.1 |
Margin1 | 14.8% | 13.4% | 14.2% | |
EBITDA | 137.7 | 138.1 | -0% | 621.2 |
Adjusted EBIT2 | 98.8 | 92.1 | 7% | 392.6 |
Margin2 | 9.8% | 8.8% | 9.4% | |
EBIT | 77.6 | 87.4 | -11% | 380.9 |
Adjusted EPS, EUR3 | 0.55 | 0.51 | 7% | 2.32 |
EPS, EUR | 0.35 | 0.47 | -27% | 1.97 |
Adjusted ROI2 | 11.5% | 10.7% | 11.2% | |
Adjusted ROE3 | 13.3% | 13.7% | 13.2% | |
ROI | 10.7% | 11.0% | 10.9% | |
ROE | 11.0% | 14.3% | 11.8% | |
Capital expenditure | 36.6 | 65.2 | -44% | 318.7 |
Free Cash Flow | 38.2 | 42.6 | -10% | 321.4 |
1 Excluding IAC of | -11.3 | -2.4 | 31.1 | |
2 Excluding IAC of | -21.2 | -4.7 | -11.7 | |
3 Excluding IAC of | -20.9 | -3.9 | -35.9 |
Unless otherwise stated, all comparisons in this report are compared to the corresponding period in 2023. Figures of return on investment (ROI), return on equity (ROE) and return on net assets (RONA) as well as net debt to EBITDA presented in this report are calculated on a 12 month rolling basis.
IAC includes, but is not limited to, material restructuring costs and acquisition related costs (gains and losses on business combinations, professional and legal fees, material purchase price accounting adjustments for inventory, material purchase price amortization of intangible assets and changes in contingent considerations) as well as material impairment losses and reversals, gains and losses relating to sale of intangible and tangible assets, implementation costs concerning large projects with SaaS cloud computing technology, fines and penalties imposed by authorities and extraordinary taxes.
The figures in the tables are exact figures and consequently the sum of individual figures may deviate from the sum presented. Key figures have been calculated using exact figures.
President and CEO’s review
During the first quarter of 2024, consumption remained sensitive to unchanged interest rates and slow easing of inflation. While we saw signs of increasing demand, with differences between geographies and categories, the pricing pressure in the value chain increased. Raw materials and energy costs remained favorable while labor costs continued to increase.
First quarter sales volumes remained at the previous year's level, and improved from the second half of 2023. Though consumption is still sensitive to inflation, the demand trend is encouraging, further reflecting the benefits of our continued investments in new innovative products and capacity. Volumes were affected by the Israel-Hamas war and
We have made progress on the efficiency program launched in 2023. The announced 100 MEUR cost savings over three years will accelerate reaching our profitability ambition. We are completing the closure of our flexible packaging site in
We are encouraged by the improving operational profitability in Q1 and signs of increasing demand. Trading conditions are expected to improve compared to 2023, despite continued volatility. Our deployment of innovation and capacity, our competitiveness improvement and our solid financial position support the execution of our growth strategy.
Charles Héaulmé,
President and CEO
Financial review Q1 2024
Net sales by business segment
EUR million | Q1 2024 | Q1 2023 | Change | |
Foodservice | 241.1 | 256.2 | -6% | |
344.1 | 358.1 | -4% | ||
335.2 | 349.1 | -4% | ||
85.0 | 86.9 | -2% | ||
Elimination of internal sales | -1.6 | -3.1 | ||
Group | 1,003.9 | 1,047.1 | -4% |
Comparable net sales growth by business segment
Q1 2024 | Q4 2023 | Q3 2023 | Q2 2023 | Q1 2023 | |
Foodservice | -5% | -5% | -3% | 5% | 11% |
-3% | 4% | 1% | 1% | 2% | |
-1% | -9% | -11% | -11% | -5% | |
1% | 2% | 4% | 7% | 17% | |
Group | -2% | -3% | -4% | -2% | 2% |
The Group’s net sales decreased 4% to
Adjusted EBIT by business segment
Items affecting comparability | |||||
EUR million | Q1 2024 | Q1 2023 | Change | Q1 2024 | Q1 2023 |
Foodservice | 22.0 | 21.2 | 4% | -16.3 | -1.5 |
47.9 | 42.5 | 13% | -1.0 | - | |
21.6 | 21.4 | 1% | -2.4 | -2.8 | |
8.6 | 10.5 | -18% | -1.2 | -0.3 | |
Other activities | -1.3 | -3.5 | -0.3 | -0.1 | |
Group | 98.8 | 92.1 | 7% | -21.2 | -4.7 |
Adjusted EBIT margin by business segment
Q1 2024 | Q4 2023 | Q3 2023 | Q2 2023 | Q1 2023 | |
Foodservice | 9.1% | 10.0% | 10.3% | 9.2% | 8.3% |
13.9% | 14.3% | 13.2% | 12.2% | 11.9% | |
6.4% | 8.1% | 7.2% | 4.9% | 6.1% | |
10.1% | 10.9% | 12.5% | 10.8% | 12.1% | |
Group | 9.8% | 10.4% | 9.7% | 8.8% | 8.8% |
The Group’s adjusted EBIT increased to
Adjusted EBIT excludes
Adjusted EBIT and IAC
EUR million | Q1 2024 | Q1 2023 |
Adjusted EBIT | 98.8 | 92.1 |
Acquisition related costs | -0.0 | -0.1 |
Restructuring gains and losses, including writedowns of related assets | -17.2 | -2.3 |
PPA amortization | -2.2 | -2.2 |
Settlement and legal fees of disputes | -0.1 | -0.1 |
Property damage incidents | -0.5 | - |
Implementation costs concerning large projects with SaaS cloud computing technology | -1.2 | - |
EBIT | 77.6 | 87.4 |
Net financial expenses were
Adjusted profit and IAC
EUR million | Q1 2024 | Q1 2023 |
Adjusted profit for the period attributable to equity holders of the parent company | 57.2 | 53.4 |
IAC in EBIT | -21.2 | -4.7 |
IAC in Financial items | -0.5 | -0.4 |
IAC Tax | 0.8 | 1.2 |
IAC attributable to non-controlling interest | 0.1 | - |
Profit for the period attributable to equity holders of the parent company | 36.3 | 49.5 |
Three-year program to accelerate strategy implementation and to bring MEUR 100 cost savings
On
Savings initiatives have been launched in all four areas of focus; sourcing, waste reduction, labor productivity and manufacturing footprint. The savings are expected to accumulate gradually over 3 years. All activities executed thus far have generated a positive impact on the company’s profit in Q1 2024, above the linear savings trajectory of the program. The savings contributed to the Group’s adjusted EBIT expansion of
Outlook for 2024 (unchanged)
The Group’s trading conditions are expected to improve compared to 2023. Volatility in the operating environment is expected to continue, while Huhtamaki's diversified product portfolio provides resilience. The company’s initiatives, which include the ongoing savings and efficiency program are expected to support the company’s performance. The Group’s good financial position enables addressing profitable growth opportunities.
Annual General Meeting 2024
The Annual General Meeting of Shareholders (AGM) will be held on
Teleconference
Huhtamaki will arrange a combined audiocast and teleconference on
A link to the audiocast is available at: https://huhtamaki.videosync.fi/q1-2024
A link to the teleconference is available at: https://palvelu.flik.fi/teleconference/?id=50048357. Registration is required for the teleconference. After the registration you will be provided with phone numbers and a conference ID to access the conference.
An on-demand replay of the audiocast will be available shortly after the end of the call at www.huhtamaki.com/investors.
Financial reporting in 2024
In 2024, Huhtamaki will publish financial information as follows:
Half-yearly Report,
Interim Report, January 1 - September 30, 2024
This is a summary of Huhtamäki Oyj's Interim Report
For further information, please contact:
HUHTAMÄKI OYJ
About Huhtamaki
Huhtamaki is a leading global provider of sustainable packaging solutions for consumers around the world. Our innovative products protect on-the-go and on-the-shelf food and beverages, and personal care products, ensuring hygiene and safety, driving accessibility and affordability, and helping prevent food waste. We embed sustainability in everything we do. We are committed to achieving carbon neutral production and designing all our products to be recyclable, compostable or reusable by 2030. Our blueloopTM sustainable packaging solutions are world-leading and designed for circularity.
We are a participant in the
With 100 years of history and a strong Nordic heritage we operate in 37 countries and 107 operating locations around the world. Our values Care Dare Deliver guide our decisions and help our team of around 18 000 employees make a difference where it matters. Our 2023 net sales totalled
Attachment
- Q1 2024 Interim Report
© OMX, source