Huhtamäki Oyj’s Interim Report January 1-September 30, 2015: Continued profitability improvement

Q3 2015 in brief
• Net sales grew to EUR 692 million (EUR 563 million)
• EBIT improved to EUR 62 million (EUR 40 million)
• EPS improved to EUR 0.43 (EUR 0.26)
• Comparable net sales growth was 6% in total and 7% in emerging markets
• Currency movements had a positive impact of EUR 40 million on the Group’s net sales, and EUR 3 million on EBIT
• Free cash flow improved to EUR 27 million (EUR 15 million) despite the negative impact from the fine of EUR 15.6 million paid to the European Commission
Q1-Q3 2015 in brief
• Net sales were EUR 2,036 million (EUR 1,655 million)
• EBIT excluding NRI was EUR 182 million (EUR 130 million)
• EPS excluding NRI was EUR 1.27 (EUR 0.85)
• Comparable net sales growth was 4% in total and 6% in emerging markets
• Currency movements had a positive impact of EUR 160 million on the Group’s net sales, and EUR 13 million on EBIT
• Acquisition of Positive Packaging, a flexible packaging company operating in India, United Arab Emirates and Africa, was closed at the end of January and the business was consolidated into the Flexible Packaging business segment as of February 1, 2015
• The European Commission imposed a fine of EUR 15.6 million on Huhtamaki based on infringements of EU’s competition regulation in 2002-2006. Huhtamaki has launched an appeal on the decision.

Jukka Moisio, CEO:
“We’re pleased to report good comparable growth for the third quarter with emerging markets at 7% and the Group at 6%. Although growth has been uneven across geographies during the course of the year reflecting economic uncertainty, all our business segments did well during the third quarter. Demand development in India was subdued, whereas China appears to have arrested the deepest demand decline. In Western Europe we saw some early signs of recovery. In the current market environment our global food packaging position proved its strength by allowing us to achieve good growth despite geographic variations.

Our profitability improvement continued. The North America segment achieved an excellent result and all our business segments excluding Foodservice Europe-Asia-Oceania were able to improve their profitability. I’m delighted to see that the actions our teams have taken are bearing fruit. We’ll continue our prudent housekeeping across business segments with an aim to achieve continued improvement.

Despite the volatility in raw material markets during the year, the impact of raw material prices on the Group level has been neutral. On the segment level, volatile plastic resin prices have had an impact on the profitability of the Foodservice Europe-Asia-Oceania and Flexible Packaging segments.

We continued to invest in growth in all segments according to our plans. Even with the increased investments and payment of the EUR 15.6 million fine to the European Commission, our cash flow developed well. There was also a good improvement in our return on equity and return on invested capital. Despite of the recent market uncertainty, we remain relatively optimistic on the longer term growth opportunities in food packaging and we remain focused on developing our business to capture our share of quality growth.”
http://www.huhtamaki.com/-/huhtamaki-oyj-s-interim-report-january-1-september-30-2015-continued-profitability-improvement

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