2017-04-27 07:00:30 CEST
2017-04-27 07:00:30 CEST
REGULATED INFORMATION
Huhtamäki Oyj - Interim report (Q1 and Q3)
Huhtamäki Oyj's Interim Report January 1 - March 31, 2017: Net sales grew and earnings improved
HUHTAMÄKI OYJ INTERIM REPORT 27.4.2017 at 8:00
Huhtamäki Oyj's Interim Report January 1 - March 31, 2017: Net sales grew and
earnings improved
Q1 2017 in brief
* Net sales grew to EUR 739 million (EUR 672 million)
* EBIT improved to EUR 63 million (EUR 58 million)
* EPS improved to EUR 0.43 (EUR 0.40)
* Comparable net sales growth was 3% in total and 2% in emerging markets
* Currency movements had a positive impact of EUR 20 million on the Group's
net sales and EUR 2 million on EBIT
Key figures
EUR million Q1 2017 Q1 2016 Change FY 2016
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Net sales 739.4 672.3 10% 2,865.0
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EBITDA(1) 94.0 84.6 11% 381.8
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Margin(1) 12.7% 12.6% 13.3%
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EBIT(1) 62.8 57.8 9% 267.9
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Margin(1) 8.5% 8.6% 9.4%
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EPS(1), EUR 0.43 0.40 8% 1.83
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ROI(1) 14.6% 14.8% 14.7%
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ROE(1) 17.4% 18.3% 17.7%
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Capital expenditure 47.0 24.3 93% 199.1
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Free cash flow -8.8 25.6 -134% 100.3
(1) FY 2016 excluding IAC of EUR -1.7 million; Reported EBITDA for FY 2016 EUR
380.1 million, EBIT EUR 266.2 million and EPS EUR 1.81.
Unless otherwise stated, all comparisons in this report are compared to the
corresponding period in 2016. Figures of return on investment (ROI), return on
equity (ROE) and return on net assets (RONA) presented in this report are
calculated on a 12-month rolling basis.
As announced on April 24, 2017, Huhtamaki has changed the name of its Molded
Fiber business segment to Fiber Packaging. The new name is taken into use as of
April 27, 2017 and is used in this report.
In this report, Huhtamaki uses alternative performance measures in accordance
with the guidelines issued by the European Securities and Markets Authority
(ESMA). Alternative performance measures are derived from performance measures
reported in accordance to International Financial Reporting Standards (IFRS) by
adding or deducting the Items affecting comparability (IAC) and they are called
Adjusted. Alternative performance measures are used to better reflect the
operational business performance and to enhance comparability between financial
periods. They are reported in addition to, but not substituting, the performance
measures reported in accordance with IFRS.
Jukka Moisio, CEO:
"Our year started well and we achieved 3% comparable net sales growth with all
business segments growing organically. Growth was driven by Foodservice Europe-
Asia-Oceania segment, where organic growth was boosted by acquisitions completed
in 2016. In addition, the Flexible Packaging segment returned to positive
growth. The Group's comparable growth in emerging markets was reduced to 2% as
consumer demand in India was impacted by the demonetization action executed by
the government in Q4 2016. Without the Indian impact emerging market growth
would have been approx. 6-7%.
Our EBITDA, EBIT and EPS improved with margins at the previous year's levels.
Foodservice Europe-Asia-Oceania segment accounted for the strongest
profitability improvement with good volume growth, high-yielding acquisitions,
and successful restructuring actions in China and New Zealand. Free cash flow
was negative due to high capital expenditure and seasonal inventory buildup. Our
ROI and ROE remained at good levels.
2017 is a year of major investments for Huhtamaki. Our ongoing investments in
new manufacturing units in the U.S., Egypt, and Ukraine are progressing. During
the quarter we already started manufacturing in two new flexible packaging units
in Northeast India and are currently ramping up the plant extension in
Guangzhou, China. These significant growth investments help us address
attractive opportunities in food and drink packaging and serve our customers
better."
Financial review Q1 2017
The Group's comparable net sales growth was 3% during the quarter with all
business segments having a positive contribution to growth. The Group's
comparable growth in emerging markets was 2%. Growth was strong in Eastern
Europe and Southeast Asia, but negative in India, South America and China. In
China the Foodservice Europe-Asia-Oceania business segment exited non-core
product categories as announced in 2016. The Group's net sales grew to
EUR 739 million (EUR 672 million). The impact from foreign currency translation
on net sales turned positive and was EUR 20 million (EUR -11 million) compared
to 2016 exchange rates. Main positive impact came from the strengthening of the
US dollar versus euro, while the impact from the weakening pound sterling was
negative.
Net sales by business segment
EUR million Q1 2017 Q1 2016 Change Of Group in
Q1 2017
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Foodservice Europe-Asia-Oceania 192.5 158.9 21% 26%
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North America 247.3 235.2 5% 33%
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Flexible Packaging 232.3 217.7 7% 31%
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Fiber Packaging 72.3 65.5 10% 10%
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Elimination of internal sales -5.0 -5.0
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Group 739.4 672.3 10%
Comparable growth by business segment
Q1 2017 Q4 2016 Q3 2016 Q2 2016
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Foodservice Europe-Asia-Oceania 3% 3% 5% 7%
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North America 2% 5% 2% 8%
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Flexible Packaging 3% -3% -3% 2%
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Fiber Packaging 4% 6% 6% 5%
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Group 3% 3% 2% 6%
The Group's earnings grew. Main drivers for earnings growth were the robust
profitability improvement of the Foodservice Europe-Asia-Oceania business
segment as well as continued good progress in the North America business
segment. Earnings of the Flexible Packaging business segment remained on the
previous year's level, while earnings of the Fiber Packaging business segment
declined. The Group's earnings before interest and taxes (EBIT) were
EUR 63 million (EUR 58 million). Positive foreign currency translation impact on
Group's EBIT was EUR 2 million (EUR -1 million).
EBIT by business segment
EUR million Q1 2017 Q1 2016 Change Of Group in
Q1 2016
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Foodservice Europe-Asia-Oceania 15.4 12.0 28% 24%
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North America 22.5 20.8 8% 35%
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Flexible Packaging 18.9 18.9 0% 30%
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Fiber Packaging 7.3 8.2 -11% 11%
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Other activities -1.3 -2.1
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Group 62.8 57.8 9%
Net financial expenses were EUR 5 million (EUR 6 million). Tax expense was
EUR 13 million (EUR 9 million). The corresponding tax rate was 22% (18%).
Profit for the quarter was EUR 45 million (EUR 43 million). Earnings per share
(EPS) were EUR 0.43 (EUR 0.40).
Outlook for 2017
The Group's trading conditions are expected to remain relatively stable during
2017. The good financial position and ability to generate a positive cash flow
will enable the Group to address profitable growth opportunities. Capital
expenditure is expected to be approximately at the same level as in 2016 with
the majority of the investments directed to business expansion.
Annual General Meeting 2017
The Annual General Meeting of Shareholders will be held on Thursday, April
27, 2017 at 11.00 (EET) at Messukeskus Helsinki, Expo and Convention Centre,
Messuaukio 1, 00520 Helsinki, Finland.
Financial reporting in 2017
In 2017, Huhtamaki will publish financial information as follows:
Half-yearly Report, January 1-June 30, 2017 July 21
Interim Report, January 1-September 30, 2017 October 26
This is a summary of Huhtamäki Oyj's Interim Report January 1 - March 31, 2017.
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, CFO, tel. +358 10 686 7880
HUHTAMÄKI OYJ
Group Communications
Huhtamaki is a global specialist in packaging for food and drink. With our
network of 76 manufacturing units and additional 24 sales only offices in
altogether 34 countries, we're well placed to support our customers' growth
wherever they operate. Mastering three distinctive packaging technologies,
approximately 17,300 employees develop and make packaging that helps great
products reach more people, more easily. In 2016 our net sales totaled EUR 2.9
billion. The Group has its head office in Espoo, Finland and the parent company
Huhtamäki Oyj is listed on Nasdaq Helsinki Ltd. Additional information is
available at www.huhtamaki.com.
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