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2014-04-24

Huhtamäki Oyj's Interim Report January 1 - March 31, 2014: Comparable net sales growth across the business segments

HUHTAMÄKI OYJ INTERIM REPORT 24.4.2014 AT 08:30

Huhtamäki Oyj's Interim Report January 1 - March 31, 2014: Comparable net
sales growth across the business segments

Q1 2014 in brief

* Net sales was EUR 564 million (EUR 568 million)
* EBIT was EUR 41 million (EUR 37 million)
* EPS was EUR 0.27 (EUR 0.24)
* Comparable net sales growth was 5% in total and 13% in the emerging markets
* Currency movements had a significant negative impact of EUR 30 million on
the Group's net sales

Key figures

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|EUR million Q1 2014 Q1 2013 Change FY 2013 |
| |
|Net sales 563.7 568.4 -1% 2,342.2 |
|EBITDA* 63.6 59.7 7% 256.4 |
|EBITDA margin* 11.3% 10.5% 10.9% |
|EBIT* 41.4 37.2 11% 166.7 |
|EBIT margin* 7.3% 6.5% 7.1% |
|EPS*, EUR 0.27 0.24 13% 1.21 |
|ROI* 12.1% 12.9% 12.1% |
|ROE* 16.1% 15.4% 15.8% |
|Capital expenditure 22.0 26.8 -18% 121.0 |
|Free cash flow -11.3 -21.4 47% 56.0 |
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* Excluding EUR -30.6 million non-recurring items (NRI) in FY 2013.

CEO Jukka Moisio:
"Despite increasing political unrest in Eastern Europe and slow growth in
Europe and in North America, the trading conditions for Huhtamaki were
relatively stable and good during the first quarter of 2014. Demand for
consumer packaging was good in Eastern European markets as well as in
emerging markets. The Group's comparable growth was 5% mainly driven by
positive volume development; emerging markets' comparable growth was 13%.
Currency fluctuations had a significant negative impact on the Group's
reported net sales, as almost all of the non-euro currencies of Huhtamaki's
operating countries weakened against the euro.

The situation in Crimea has until now had very little if any impact on
Huhtamaki's business. Our foodservice and molded fiber businesses in Russia
serve primarily local customers with products manufactured locally, and
unless things change dramatically we expect the growth in Russia to continue.

Despite general economic uncertainty the prices of Huhtamaki's main raw
materials have been relatively stable during the first quarter of the year.
Demand and supply for recycled fiber have been quite well balanced globally.
The decision of major foodservice operator in the United States to
discontinue foam cups and move to paperboard based cups in their operations
is hiking up the price of cupstock as demand increases. Prices of plastic
resins are increasing in Asia and in North America creating pressure on
margins.

Huhtamaki's financial performance during the first quarter was good. Volume
growth and good operational efficiency helped improve the Group's earnings.
This is a good start for the year and we see no reason to change the 2014
outlook given in February."

Financial review Q1 2014
The Group's comparable net sales growth was 5% during the quarter with all
business segments reporting organic growth. In the emerging markets,
comparable growth was 13%, with Eastern European markets showing fastest
growth. The Group's reported net sales were EUR 564 million (EUR 568
million). The negative foreign currency translation impact on Group's net
sales was significant, being EUR 30 million compared to the 2013 exchange
rates, as most currencies weakened towards euro. The largest negative impact
on the Group's net sales came from the fluctuations of US dollar, Indian
rupee and Russian ruble.

NET SALES BY BUSINESS SEGMENT

-----------------------------------------------------------------------------
|EUR million Q1 2014 Q1 2013 Change Of Group in Q1 2014 |
| |
|Foodservice Europe-Asia-Oceania 142.0 149.6 -5.1% 25% |
|North America 164.2 164.6 -0.2% 29% |
|Flexible Packaging 150.8 149.1 1.1% 26% |
|Molded Fiber 61.5 60.6 1.5% 11% |
|Films 51.7 48.6 6.4% 9% |
-----------------------------------------------------------------------------
Excluding internal sales eliminations of EUR -6.5 million in Q1 2014 and EUR
-4.1 million in Q1
2013.
COMPARABLE GROWTH BY BUSINESS SEGMENT

------------------------------------------------------------------
| Q1 2014 Q4 2013 Q3 2013 Q2 2013 |
| |
|Foodservice Europe-Asia-Oceania 3% 3% 3% 1% |
|North America 3% 6% 7% 3% |
|Flexible Packaging 7% 9% 6% 3% |
|Molded Fiber 10% 10% 6% 5% |
|Films 9% 2% 3% -7% |
|Group 5% 6% 5% 2% |
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The Group's earnings development in constant currencies was strong, with all
business segments contributing to the positive development. Main reason for
the positive development was volume growth and continued good cost
containment. In constant currencies the earnings before interest and taxes
(EBIT) grew by 14%. The Group's reported EBIT were EUR 41 million (EUR 37
million). Negative foreign currency translation impact on Group's EBIT was
EUR 2 million.
EBIT BY BUSINESS SEGMENT

-----------------------------------------------------------------------------
|EUR million Q1 2014 Q1 2013 Change Of Group in Q1 2014 |
| |
|Foodservice Europe-Asia-Oceania 11.0 8.4 31.0% 27% |
|North America 8.8 7.8 12.8% 21% |
|Flexible Packaging 11.0 11.2 -1.8% 27% |
|Molded Fiber 7.6 7.1 7.0% 18% |
|Films 3.0 1.8 66.7% 7% |
-----------------------------------------------------------------------------
Excluding Other activities EBIT EUR 0.0 million in Q1 2014 and EUR 0.9 million
in Q1 2013.

Net financial expenses increased and were EUR 8 million (EUR 7 million). The
increase was due to a higher amount of external debt compared to the previous
year as a result of the fixed rate unsecured bond issued in the second
quarter of 2013. Tax expense was EUR 5 million (EUR 5 million). The
corresponding tax rate was 16% (16%).

Reported profit for the period was EUR 28 million (EUR 26 million). Earnings
per share (EPS) were EUR 0.27 (EUR 0.24).

Changes after the reporting period
Shashank Sinha was appointed Executive Vice President, Flexible Packaging and
a member of the Group Executive Team as of April 14, 2014. Simultaneously
Suresh Gupta stepped aside from the role of Executive Vice President and a
member of the Group Executive Team and continues as a Senior Advisor for the
Group reporting to CEO Jukka Moisio.

Outlook for 2014

The Group's trading conditions are expected to remain relatively stable during
2014. The good financial position and ability to generate a positive cash
flow will enable the Group to continue to address profitable growth
opportunities. Capital expenditure is expected to be at the same level as in
2013. A significant part of the investments are expected to be directed to
enhance growth in the emerging markets.

-------------------------------------------------------------------
|Financial Reporting in 2014 |
| |
|The following interim reports will be published during the year: |
|- Interim Report January 1 - June 30, 2014 July 18, 2014 |
|- Interim Report January 1 - September 30, 2014 October 23, 2014 |
| |
-------------------------------------------------------------------
This is a summary of Huhtamaki's Interim Report January 1 - March 31, 2014.
The complete report is attached to this release and is also available at the
company website at www.huhtamaki.com.

For further information, please contact:
Jukka Moisio, CEO, tel. +358 10 686 7801
Thomas Geust, Director, Finance, tel. +358 686 7880

HUHTAMÄKI OYJ
Group Communications

Huhtamaki Group is a leading manufacturer of consumer and specialty packaging
with 2013 net sales totaling EUR 2.3 billion. Foodservice and consumer goods
markets are served by approximately 14,400 people in 61 manufacturing units
and several sales offices in 30 countries. The parent company, Huhtamäki Oyj,
has its head office in Espoo, Finland and its share is quoted on NASDAQ OMX
Helsinki Ltd. Additional information is available at www.huhtamaki.com.

Huhtamaki Oyj Interim Report January 1 - March 31, 2014
http://hugin.info/3006/R/1779138/608120.pdf

---------------------------------------

This announcement is distributed by NASDAQ OMX Corporate Solutions on behalf of NASDAQ OMX Corporate Solutions clients.
The issuer of this announcement warrants that they are solely responsible for the content, accuracy and originality of the information contained therein.
Source: Huhtamäki Oyj via Globenewswire

HUG#1779138

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