2014-02-06 07:30:00 CET
2014-02-06 07:30:48 CET
REGULATED INFORMATION
Huhtamäki Oyj - Financial Statement Release
Huhtamäki Oyj's Results January 1 - December 31, 2013: Continued improving performance
HUHTAMÄKI OYJ FINANCIAL STATEMENT RELEASE 6.2.2014 AT 08:30
Huhtamäki Oyj's Results January 1 - December 31, 2013: Continued improving
performance
* Accelerated net sales growth in emerging markets towards the end of the year
in constant currencies
* Earnings improvement in the Molded Fiber and Foodservice Europe-Asia-Oceania
segments
* Net sales growth in the North America segment but earnings burdened by
ongoing investments
* Negative currency impact of EUR 84 million on the Group's net sales and EUR
6 million on EBIT
* Strategy implementation progressed: foodservice business in Italy divested
and a manufacturer of specialty corrugated food-to-go products acquired in
the UK
* The Board of Directors proposes a dividend of EUR 0.57 (EUR 0.56 for 2012)
per share
Key figures - excluding non-recurring items
EUR million FY 2013 FY 2012 Q4 2013 Q4 2012
------------------------------------------------
Net sales 2,342.2 2,321.2 568.4 575.6
EBIT* 166.7 163.5 38.0 35.9
EBIT margin*, % 7.1 7.0 6.7 6.2
EPS*, EUR 1.21 1.19 0.32 0.26
ROI*, % 12.1 12.6
ROE*, % 15.8 15.8
Free cash flow 56.0 102.6 18.3 45.7
Net debt 404.6 405.9
Gearing 0.50 0.50
* Excluding EUR -18.1 million non-recurring items (NRI) in Q4 2013 and EUR -30.6
million in FY 2013.
Key figures - reported
EUR million FY 2013 FY 2012 Q4 2013 Q4 2012
-----------------------------------------------
Net sales 2,342.2 2,321.2 568.4 575.6
EBIT 136.1 163.5 19.9 35.9
EBIT margin, % 5.8 7.0 3.5 6.2
EPS, EUR 0.91 1.19 0.14 0.26
ROI, % 9.9 12.6
ROE, % 12.0 15.8
Free cash flow 56.0 102.6 18.3 45.7
Net debt 404.6 405.9
Gearing 0.50 0.50
CEO Jukka Moisio:"We did well in 2013. Earnings per share, excluding non-recurring items, were
EUR 1.21 and the Board of Directors proposes a dividend of EUR 0.57 per share.
We succeeded in our key target of improving our financial result from the record
achieved in 2012. Despite unfavorable currency movements and a slow start to the
year, earnings growth was achieved through organic sales growth and improved
efficiency in key operations. Sales momentum improved during the year and
remains reasonably strong as we are entering into 2014.
This year we will stay focused on achieving our quality growth ambitions. Our
mid-term target is to have a EUR 3 billion net sales and higher margins. In
addition to continued good housekeeping and organic growth we will actively
screen acquisition targets."
Overview
The Group's trading conditions remained relatively stable during 2013 despite
general economic uncertainty and customer cautiousness. Start of the year was
slow but demand for consumer packaging improved as the year progressed and was
reasonably good at year-end. Currency fluctuations were unfavorable for the full
year and especially during the second half. Raw material price levels remained
relatively stable.
The Group's reported net sales were EUR 2,342 million (EUR 2,321 million).
Organic net sales growth in constant currencies was 3% with all business
segments, except Films, reporting growth. Organic net sales growth was strongest
in the Molded Fiber business segment. In the emerging markets, organic growth in
constant currencies was 8%. During the fourth quarter the Group's reported net
sales were EUR 568 million (EUR 577 million). Organic net sales growth in
constant currencies was 6%. Growth accelerated also in the emerging markets
where organic net sales growth in constant currencies was 14% during the fourth
quarter. The Group's net sales were negatively affected by adverse currency
movements. The negative foreign currency translation impact on net sales was EUR
84 million during the reporting period and EUR 33 million during the fourth
quarter.
The Group's earnings before interest and taxes (EBIT), excluding non-recurring
items (NRI), were EUR 167 million (EUR 164 million) and in the fourth quarter
EUR 38 million (EUR 36 million). Including NRI of EUR -31 million and for the
fourth quarter EUR -18 million, the reported EBIT was EUR 136 million and in the
fourth quarter EUR 20 million. Positive earnings development continued in the
Molded Fiber and Foodservice Europe-Asia-Oceania business segments. Earnings in
the North America business segment were unsatisfactory despite strong net sales
growth, as they were burdened by ongoing investment costs. Adverse currency
impact on the Group's EBIT was EUR 6 million during the reporting period and EUR
2 million for the fourth quarter. Earnings per share (EPS) excluding NRI were
EUR 1.21 (EUR 1.19) and for the fourth quarter EUR 0.32 (EUR 0.26). Reported EPS
was EUR 0.91 (EUR 1.19) and for the fourth quarter EUR 0.14 (EUR 0.26).
The Group's free cash flow was EUR 56 million (EUR 103 million) and for the
fourth quarter EUR 18 million (EUR 46 million). Return on investment (ROI),
excluding NRI, was 12.1% (12.6%) and return on equity (ROE), excluding NRI, was
15.8% (15.8%).
The implementation of the Group's strategic direction which focuses on quality
growth was continued during the year. In the United States premises acquired in
Batavia, Ohio, were transformed into a new world class manufacturing and
distribution unit. The unit commenced operations towards the end of the year. In
Europe the foodservice product range was expanded with a targeted acquisition of
a specialty corrugated packaging manufacturer in the UK.
Certain efficiency improving measures were taken during the year to improve the
long-term competitiveness of the Group. As an outcome of these activities
manufacturing units in Viul, Norway and Epping, South Africa were closed.
Additionally, the strategic review of loss-making foodservice business in Italy
was concluded and the business divested.
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.
Dividend proposal
On December 31, 2013 Huhtamäki Oyj's non-restricted equity was EUR 786 million
(EUR 830 million). The Board of Directors will propose to the Annual General
Meeting that a dividend of EUR 0.57 (EUR 0.56) per share be paid.
Annual General Meeting 2014
The Annual General Meeting of Shareholders will be held on Thursday, April
24, 2014 at 1 pm (Finnish time), at Finlandia Hall, Mannerheimintie 13e, in
Helsinki, Finland.
Financial Reporting Schedule in 2014
Annual Accounts and Directors' Report for 2013 will be published during week 8
on the Company's website at www.huhtamaki.com.
The following interim reports will be published during the year:
- Interim Report January 1 - March 31, 2014 April 24, 2014
- 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 Results January 1 - December 31, 2013. 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#1759444]
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