The Mayr-Melnhof Group was able to close the 1Q 2020 with a positive development of results, despite increasingly challenging conditions due to the Covid-19 pandemic. As a manufacturer of system-relevant products, cartonboard and cartonboard packaging for consumer staples, we recorded an overall good utilization and have been able to maintain production to a large extent. The Group’s consolidated sales amounted to Euro 646.6 million, slightly above the comparable figure for the previous year (1Q 2019: Euro 642.9 million).
EBITDA increased by 8.8% to Euro 98.9 million. The operating profit rose by 12.9% or Euro 7.4 million to Euro 64.6 million and includes a liability recognized as expenses for the termination agreement with the former CEO in the amount of Euro -8.6 million, which was booked in equal shares in the divisions. In the first quarter of the previous year, one-off acquisition effects from the initial consolidation of the Tann-Group due to the recognition of the order backlog and inventory valuation were recorded in the amount of around Euro -7 million. The Group's operating margin increased to 10% after 8.9% in the comparable period.
Profit before tax rose by 8.1% to Euro 62.8 million. Income tax expense amounted to Euro 17.7 million. This results in an increase of the effective Group tax rate to 28.2% (1Q 2019: 24.8%), which is mainly due to the tax effect of the liability for the termination agreement.
Profit for the period thus went up by 3.2% to Euro 45.1 million (1Q 2019: Euro 43.7 million).
The Mayr-Melnhof Group is the world-leader in coated recycled cartonboard with a growing position in virgin fiber based board and Europe’s leading manufacturer of folding cartons with a growing presence outside of Europe.
