Huhtamäki Oyj - Half Year financial report

Huhtamäki Oyj's Interim Report January 1 - June 30, 2012: Solid net sales and earnings growth

HUHTAMÄKI OYJ STOCK EXCHANGE RELEASE 20.7.2012 AT 08:30

- Net sales growth continued
- Solid profitability improvement
- Strong net sales and earnings development in the Foodservice Europe-Asia-
Oceania segment; recent acquisition in Asia contributed positively
- Outlook for full year 2012 has been adjusted and earnings per share (EPS) are
expected to increase significantly compared to the EUR 0.87 (excluding non-
recurring items) achieved in 2011



Key figures

 EUR million     H1 2012 H1 2011 Q2 2012 Q2 2011    2011
--------------------------------------------------------
 Net sales       1,168.2 1,006.0   618.1   528.0 2,043.6

 EBIT*              83.2    67.4    49.3    40.0   127.6

 EBIT margin*, %     7.1     6.7     8.0     7.6     6.2

 EPS*, EUR          0.64    0.45    0.39    0.28    0.87

 ROI, %             11.0    11.2                     9.8

 ROE, %             12.9    13.2                    11.0

 Free cash flow     23.8   -19.2    34.7    12.4    64.9

 Net debt          476.9   330.5                   393.4

 Gearing            0.57    0.40                    0.49


* Excluding EUR -7.0 million (net amount) non-recurring items in 2011.

Overview
The Group's trading conditions remained stable throughout the reporting period
despite increased general economic uncertainty during the second quarter. Demand
for consumer packaging was healthy during the reporting period but there were
some signs of increased cautiousness towards the end of the second quarter, as
customers avoided building inventories. Foreign currency movements had a
favorable impact on the Group's net sales and earnings.

The Group achieved 16% net sales growth during the reporting period, half of
which was attributable to the businesses acquired during the previous 12 months.
Organic growth was 6% and the strongest contributors were the Flexible Packaging
and Molded Fiber segments. The Group's net sales were EUR 1,168 million (EUR
1,006 million) and EUR 618 million (EUR 528 million) in the second quarter.

As a result of healthy net sales growth the Group's earnings before interest and
taxes (EBIT) grew to EUR 83 million (EUR 67 million) and EUR 49 million (EUR 40
million) in the second quarter. Earnings growth was strongest in the Foodservice
Europe-Asia-Oceania segment. The acquired businesses had a positive contribution
to the Group's earnings.

Earnings per share (EPS) were EUR 0.64 (EUR 0.45). Outlook for full year 2012
has been adjusted and earnings per share (EPS) are expected to increase
significantly compared to the EUR 0.87 (excluding non-recurring items) achieved
in 2011. Earlier full year 2012 earnings per share (EPS) were expected to
increase compared to the EUR 0.87 (excluding non-recurring items) achieved in
2011.

The Group's free cash flow improved and was EUR 24 million (EUR -19 million) and
for the second quarter EUR 35 million (EUR 12 million). Return on investment
(ROI) was 11.0% (11.2%) and return on equity (ROE) was 12.9% (13.2%). The
quarter-on-quarter improvement of ROI and ROE continued.

The acquisition of Josco (Holdings) Limited, a major Asian foodservice packaging
supplier, was completed. The acquired business is consolidated into the
Foodservice Europe-Asia-Oceania segment as of April 1, 2012.

Outlook for 2012
The Group's trading conditions are expected to remain relatively stable during
the rest of 2012. The good financial position and ability to generate a positive
cash flow will enable the Group to further address profitable growth
opportunities. Growth in net sales is expected to continue and earnings per
share (EPS) are expected to increase significantly compared to the EUR 0.87
(excluding non-recurring items) achieved in 2011. Capital expenditure is
expected to be below EUR 100 million.

Financial reporting schedule in 2012
Huhtamaki will publish the interim report for January 1 - September 30, 2012 on
October 19.

This is a summary of Huhtamaki's Interim Report January 1 - June 30, 2012. The
complete report is attached to this release and is also available at the company
website at www.huhtamaki.com.

Unless otherwise stated, all statements and comments presented in this release
relate to the reporting period and all comparisons are compared to the
corresponding reporting period in 2011.

For further information, please contact:
Jukka Moisio, CEO, tel. +358 10 686 7801
Timo Salonen, CFO, tel. +358 10 686 7880

HUHTAMÄKI OYJ
Group Communications

Huhtamaki Group is a leading manufacturer of consumer and specialty packaging
with 2011 net sales totaling EUR 2 billion. Foodservice and consumer goods
markets are served by approximately 14,000 people in 61 manufacturing units and
several sales offices in 31 countries. The parent company, Huhtamäki Oyj, has
its head office in Espoo, Finland and its share is quoted on the NASDAQ OMX
Helsinki Ltd. Additional information is available at www.huhtamaki.com.


[HUG#1626363]

Attachments:

Huhtamäki Oyj Interim Report January 1-June 30, 2012.pdf