Huhtamäki’s net sales decreased 12% to Euro 1,037 million during the Q3 2023 and comparable net sales growth was -4%. Demand continued to be muted by the impact of inflation, but started to show signs of improvement in certain categories and geographies. Net sales were weighed on by a decrease in sales volumes and changes in currencies, whereas pricing had a positive impact. The divestment of the operations in Russia had a negative impact. Comparable sales growth in emerging markets was -7%. Foreign currency translation impact on the Group’s net sales was Euro -70 million compared to 2022 exchange rates.
Adjusted EBIT decreased to Euro 100 million and reported EBIT was Euro 93 million in the Q3 2023. Adjusted EBIT decreased mainly due to lower sales volumes and the divestment of operations in Russia, whereas pricing had a positive impact. The Group’s adjusted EBIT margin increased and was 9.7%. Foreign currency translation impact on the Group’s earnings was Euro -7 million.
Adjusted EBIT excludes Euro -7.5 million of items affecting comparability (IAC).
Charles Héaulmé, President and CEO, said: “The market environment improved slightly during the Q3 2023, compared to the first half of the year. The significant destocking that impacted the previous two quarters faded during the third quarter. Overall, inflation continued to affect consumption negatively across categories and geographies.
Our profitability and cash generation in the Q3 improved significantly compared to the first half of the year, despite continued soft volumes and lower support from pricing. Comparable net sales decreased by 4% compared to the Q3 2022. For the first nine months of the year, comparable net sales decreased by 1%. Currency translation continued to have a negative impact, further accelerating in the Q3. Adjusted EBIT decreased by 1% in the Q3 and by 6% during the first nine months of the year, including the negative impact from the divestment of our Russian operations. Throughout the year, we have taken actions to address productivity, and the results are starting to materialize. Free cash flow was strong, reaching Euro 122 million during the Q3 and Euro 193 million during the first nine months of the year, supported by reduced working capital.”
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