The Mayr-Melnhof Group was able to continue the ongoing improvement over the course of the year with the good third quarter and, as expected, after three quarters draw close to the high level of the previous year’s results. Both divisions contributed to maintaining the Group’s profitability with overall good utilization of the plant capacities and consistent price and cost management. Moreover, the cartonboard division succeeded in gradually compensating the sharp price increase for the strategic raw material of recovered paper.
With the acquisition of a packaging site for cosmetic and personal care products in Bydgoszcz, Poland, MM Packaging continued to expand its portfolio in the high-grade product segment. The folding carton company most recently generated annual sales of around EUR 16 million. The seller was ASG Poland. The company, MMP Premium Polska, will be integrated into the Group from the 4th quarter of 2017. The aim is to generate new growth and value creation potential through integration and productivity increase with now four packaging sites in Poland.
Furthermore, as a result of ongoing investment activity organic growth opportunities have been enhanced in and outside of Europe.
Our goal for 2017, to reach the result of the previous year as best as possible, remains unchanged.
The Group’s consolidated sales totaled EUR 1,749.1 million and were thus 2.1 %, or EUR 35.3 million above the previous year’s value (1-3Q 2016: EUR 1,713.8 million). Both divisions contributed to the slight increase.
With EUR 158.9 million, operating profit reached the previous year’s level (1-3Q 2016: EUR 160.2 million). The Group’s operating margin thus remained stable at 9.1 % (1-3Q 2016: 9.3 %).
Financial income of EUR 1.6 million (1-3Q 2016: EUR 2.3 million) contrasted with financial expenses of EUR -4.5 million (1-3Q 2016: EUR -4.7 million). As a result of the deconsolidation of the Tunisian packaging companies in the second quarter, a one-off expense of EUR 2.3 million was incurred due to accumulated foreign currency translation, which is reported under “Other financial result – net”.
Accordingly, profit before tax totaled EUR 151.9 million and was 2.6 % below the comparative figure of the previous year (1-3Q 2016: EUR 155.9 million). Income tax expense amounted to EUR 38.6 million (1-3Q 2016: EUR 40.4 million), resulting in an effective Group tax rate of 25.4 % (1-3Q 2016: 25.9 %).
At EUR 113.3 million, the profit for the period almost reached the previous year’s figure (1-3Q 2016: EUR 115.5 million).
more detail at: https://www.mayr-melnhof.com/en/press/press-releases/press-details/article/ergebnisse-zum-3-quartal-2017-1/