2014-04-24 07:30:00 CEST
2014-04-24 07:30:50 CEST
REGULATED INFORMATION
Huhtamäki Oyj - Interim report (Q1 and Q3)
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
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
* 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%
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.
[HUG#1779138]
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