The Mayr-Melnhof (MM) Group’s consolidated sales increased by Euro 61.7 million or 5.8% to Euro 1,122.1 million (1Q 2022: Euro 1,060.4 million). This increase results mainly acquisition-related from the division MM Packaging.
At Euro 61.6 million, operating profit was Euro 49.5 million below the comparable figure of the previous year (1Q 2022: Euro 111.1 million). This decline is primarily due to market- and rebuild-related downtimes in the MM Board & Paper division and restructuring expenses in the amount of Euro 15.5 million in the Packaging division. The Group’s operating margin was at 5.5 %.
Financial income amounted to Euro 1.3 million. The increase in financial expenses from Euro -7.5 million to Euro -10.8 million is mainly due to higher interest expenses for Schuldscheindarlehen and financing of the accomplished acquisitions and organic growth projects.
Profit before tax of Euro 49.0 million was Euro 54.6 million lower than the previous year’s value (1Q 2022: Euro 103.6 million). Income tax expense amounted to Euro 14.1 million, resulting in an effective Group tax rate of 28.7 %.
Profit for the period decreased by Euro 44.6 million to Euro 34.9 million.
Peter Oswald, MM CEO, comments: “As expected, the MM Group recorded a restrained start into the year in the MM Board & Paper division in the 1st quarter of 2023 against the background of a slow destocking of high customer inventory levels as well as inflation-related restrained demand. In addition to the planned capex-related shutdowns in the cartonboard mills Frohnleiten and Neuss, considerable market-related downtimes were necessary. In the division MM Packaging, demand tended to be weaker in the first months, but was overall still resilient. The significant growth of MM Packaging compared to the 1st quarter of the previous year results mainly from the inclusion of last year’s acquisitions in the pharma packaging sector, Essentra Packaging and Eson Pac. Structural adjustments were continued and affected one packaging site in Germany.”
MM is a leading producer of cartonboard and folding cartons with an attractive offer in kraft papers and uncoated fine papers.
