Huhtamaki will set up a greenfield paper cup manufacturing unit in Kiev, Ukraine. With local manufacturing Huhtamaki will be able to better serve both its local and global customers, and help them grow. Huhtamaki has been present in Ukraine since 2002 and is currently serving the market by importing products mainly from its manufacturing units in Poland. The new unit will manufacture a full range of paper cups for cold and hot drinks. Manufacturing operations are expected to begin during 2018 and the unit is expected to employ app. 50 employees. The unit will become part of the Foodservice Europe-Asia-Oceania business segment. click Read More below for additional detail
Financial statements bulletin for 1 January–31 December 2019 12 February 2020 at 12:00 noon EET
January–December 2019 (1–12/2018)
• Sales were EUR 1,931.8 million (1,944.1).
• Comparable operating result was EUR 184.4 million (251.9), or 9.5% (13.0%) of sales. Operating result was EUR 180.8 million (246.3).
• Comparable earnings per share were EUR 0.41 (0.58), and earnings per share were EUR 0.41 (0.57).
• Comparable return on capital employed was 10.4% (14.4%).
October–December 2019 (7–9/2019)
• Sales were EUR 478.4 million (489.2).
• Comparable operating result was EUR 39.1 million (42.5), or 8.2% (8.7%) of sales. Operating result was EUR 20.0 million (42.5).
• Comparable earnings per share were EUR 0.09 (0.09), and earnings per share were EUR 0.05 (0.09).
• Comparable return on capital employed was 8.9% (9.7%).
Metsä Board’s CEO Mika Joukio: “October–December developed according to our expectations, and our comparable operating result was EUR 31.9 million. In addition to lower paperboard delivery volumes, our profitability was burdened by market pulp prices, which weakened compared to the previous quarter, particularly in Europe. Our sales prices of folding boxboard and white kraftliner remained stable and lower maintenance costs together with the sales of emission allowances improved the result.
The planned renewal of the Husum pulp mill is progressing. The equipment suppliers for the new recovery boiler and turbine have been selected, and we made the first investments related to the project at the end of the year. We expect to make the final investment decision, which awaits the amendment to the environmental permit issued by the Swedish authorities, during the second quarter of 2020. The renewal will enable the long-term development of our paperboard business at the Husum integrated mill. It will also improve our energy efficiency and is a remarkable step toward our goal of fossil-free mills.
Our comparable operating result in 2019 was EUR 184.4 million. The higher average prices of paper-boards, especially in folding boxboard, improved our profitability. In white kraftliners, we defended our prices successfully, particularly in Europe’s muted demand. The total paperboard delivery volumes were lower than in the previous year. Our market pulp position is large through our holding in Metsä Fibre, due to which the decline in the pulp market prices had a significant negative impact on our results. The cash flow from our operations, EUR 200.5 million, was clearly better than in the previous year, and our balance sheet remained strong.
In 2019, we focused on product development: In the spring, we renewed our folding boxboard portfolio, and in the autumn, we introduced a new, plastic-free eco-barrier paperboard. Both have generated a lot of interest among our customers, and I believe strongly in their commercial success.
more detail at: https://www.metsaboard.com/Media/Stock-Exchange-and-Press-Releases/Pages/Release.aspx?EncryptedId=8DC746831A29A560&Title=MetsaBoardscomparableoperatingresultin2019wasEUR184million