The Mayr-Melnhof (MM) Group’s consolidated sales of Euro 2,181.4 million were slightly below the previous year's figure (H1 2022: Euro 2,218.5 million). A primarily volume-related decline in the division MM Board & Paper was offset by an acquisition- and price-related increase in the division MM Packaging.
Operating profit decreased by Euro 181.0 million from Euro 285.0 million to Euro 104.0 million. This decline primarily results from extensive market- and capex-related downtime at MM Board & Paper. The Group’s operating margin was therefore at 4.8 %.
Financial income amounted to Euro 3.7 million, compared to Euro 2.3 million in H1 2022. The increase in financial expenses from Euro -15.6 million to Euro -24.7 million is mainly due to higher interest expenses for Schuldscheindarlehen and financing of accomplished acquisitions and organic growth projects. “Other financial result - net” changed from Euro -1.6 million to Euro -5.9 million, in particular owing to currency translation.
At Euro 77.2 million, profit before tax was also lower than the previous year's figure (H1 2022: Euro 270.2 million). Income tax expense amounted to Euro 13.9 million after Euro 64.4 million in the 1st half of the previous year, resulting in an effective Group tax rate of 17.9 %.
Profit for the period decreased from Euro 205.8 million to Euro 63.3 million.
Peter Oswald, MM CEO, comments: “The development of the MM Group in the 1st half-year reflects the continuing weak demand in the cartonboard and paper sector after the record year 2022. As already communicated in mid-June, the significant decline in results is mainly attributable to the weak volume development in the division MM Board & Paper. In contrast, the division MM Packaging was able to record an overall positive performance with the successful integration of last year's acquisitions in the resilient pharmaceutical packaging sector and factoring in one-off restructuring costs.”
MM is a leading producer of cartonboard and folding cartons with an attractive offer in kraft papers and uncoated fine papers.
