2016-02-11 07:31:03 CET
2016-02-11 07:31:03 CET
REGULATED INFORMATION
Huhtamäki Oyj - Financial Statement Release
Huhtamäki Oyj's Results January 1 - December 31, 2015: Good progress throughout the year
Huhtamäki Oyj Financial statement release 11.2.2016 at 8.30
Huhtamäki Oyj's Results January 1 - December 31, 2015: Good progress throughout
the year
Q4 2015 in brief
* Net sales grew to EUR 691 million (EUR 581 million)
* EBIT improved to EUR 56 million (EUR 45 million)
* EPS were EUR 0.38 (EUR 0.39)
* Comparable net sales growth was 4% in total and 7% in emerging markets
* Currency movements had a positive impact of EUR 34 million on the Group's
net sales, and EUR 3 million on EBIT
FY 2015 in brief
* Net sales were EUR 2,726 million (EUR 2,236 million)
* EBIT excluding NRI was EUR 238 million (EUR 175 million)
* EPS excluding NRI were EUR 1.65 (EUR 1.24)
* Comparable net sales growth was 4% in total and 6% in emerging markets
* Currency movements had a positive impact of EUR 194 million on the Group's
net sales, and EUR 16 million on EBIT
* Free cash flow improved to EUR 91 million (EUR 65 million)
* Acquisition of Positive Packaging, a flexible packaging company operating in
India, United Arab Emirates and Africa, was closed at the end of January and
the business was consolidated into the Flexible Packaging business segment
as of February 1, 2015
* The European Commission imposed a fine of EUR 15.6 million on Huhtamaki
based on infringements of EU's competition regulation in 2002-2006.
Huhtamaki has launched an appeal on the decision.
* The Board of Directors proposes a dividend of EUR 0.66 (0.60) per share
Key figures
EUR million Q4 2015 Q4 2014 Change FY 2015 FY 2014 Change
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Net sales 690.5 580.5 19% 2,726.4 2,235.7 22%
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EBITDA* 82.5 67.6 22% 342.0 259.0 32%
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EBITDA margin* 11.9% 11.6% 12.5% 11.6%
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EBIT* 55.7 45.3 23% 237.5 174.9 36%
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EBIT margin* 8.1% 7.8% 8.7% 7.8%
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EPS*, EUR 0.38 0.39 -3% 1.65 1.24 33%
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ROI** 14.7% 12.6%
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ROE** 18.1% 16.1%
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Capital expenditure 50.5 49.8 1% 146.9 127.0 16%
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Free cash flow 53.0 54.1 -2% 91.2 64.6 41%
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Including discontinued operations
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EPS**, EUR 0.38 0.35 9% 1.65 1.28 29%
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EPS, reported, EUR 0.38 0.40 -5% 1.42 1.33 7%
* Excluding non-recurring items (NRI) of EUR -22.6 million in FY 2015.
** Excluding NRI of EUR -23.9 million in FY 2015 and EUR 5.1 million in Q4 2014
and FY 2014.
Unless otherwise stated, all figures presented in this report, including
corresponding periods in 2014, cover continuing operations only. Continuing
operations include the Foodservice Europe-Asia-Oceania, North America, Flexible
Packaging and Molded Fiber business segments. Discontinued operations for 2014
and 2015 include the Films business segment, which was sold at the end of
December 2014. Unless otherwise stated, all comparisons in this report are
compared to the corresponding period in 2014. ROI, ROE and RONA figures
presented in this report are calculated on a 12-month rolling basis.
Jukka Moisio, CEO:
"Huhtamäki had another strong year in 2015 and we are pleased with the solid
improvement in our profitability that yielded an all-time high EBIT, EBIT margin
and EPS. North America business segment had excellent improvement with good
organic net sales growth and strong profitability improvement. Flexible
Packaging business segment made good progress, both organically and by
integrating Positive Packaging into Huhtamaki. Both segments took actions to
improve their margins and it was rewarding to see those actions succeed.
The comparable net sales growth was 4% during the year and uneven across
geographies reflecting increasing economic uncertainty. Mostly this was visible
in emerging markets, where our comparable growth was 6% compared to 10% in
2014. Growth was subdued in large markets like China and India, while our sales
in constant currencies developed well in Russia, South America, Southeast Asia
and in certain parts of Africa. Prices for plastic resins declined during the
year and resulted in lower selling prices, which also had an impact on our
comparable growth for 2015.
Despite high organic growth investments our free cash flow grew by EUR 26
million (41%) to EUR 91 million. This together with our ROI excluding NRI at
14.7% and ROE excluding NRI at 18.1% complements our good achievements for
2015. We're well on our way towards our mid-term ambitions communicated in March
2015.
2016 has begun with high volatility and uncertainty in the markets. We remain
optimistic on the long term growth opportunities in food packaging and will
continue to invest in our three businesses - foodservice packaging, flexible
packaging and molded fiber packaging. We will utilize our presence in growth
markets to dedicate our capital allocation to the best opportunities. The growth
actions will be complemented by prudent housekeeping and continued focus on
improving our performance."
Financial review Q4 2015
The Group's comparable net sales growth was 4% during the quarter. Growth was
strongest in the Foodservice Europe-Asia-Oceania business segment followed by
the Molded Fiber and North America business segments. Growth was slightly
negative in the Flexible Packaging business segment mainly due to the impact of
lower raw material prices on selling prices. Comparable growth in emerging
markets continued at the same level as in the previous quarter and was 7%.
Growth continued to be strongest in Eastern Europe and South America, while net
sales development was soft in India and China. The Group's net sales grew to EUR
691 million (EUR 581 million). Positive Packaging contributed EUR 54 million on
the Group's net sales. Foreign currency translation impact on the Group's net
sales was EUR 34 million compared to the 2014 exchange rates. Majority of the
currency impact came from the strengthening of the US dollar versus euro, while
many of the other currencies weakened against euro.
Net sales by business segment
EUR million Q4 2015 Q4 2014 Change Of Group in Q4 2015
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Foodservice Europe-Asia-Oceania 168.7 155.6 8% 24%
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North America 244.2 205.7 19% 35%
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Flexible Packaging 214.5 159.8 34% 31%
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Molded Fiber 66.5 63.2 5% 10%
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Elimination of internal sales -3.4 -3.8
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Group 690.5 580.5 19%
Comparable growth by business segment
Q4 2015 Q3 2015 Q2 2015 Q1 2015
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Foodservice Europe-Asia-Oceania 8% 6% 2% 3%
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North America 5% 7% -2% 7%
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Flexible Packaging -1% 5% 4% 5%
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Molded Fiber 6% 5% 5% 5%
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Group 4% 6% 1% 5%
The Group's earnings grew driven by the robust earnings improvement in the North
America business segment. Earnings growth was further supported by good
development in the Flexible Packaging business segment with a positive earnings
contribution from Positive Packaging. Earnings development in the Foodservice
Europe-Asia-Oceania and Molded Fiber business segments was negative. The impact
of Other activities in the Group's earnings was primarily due to expenses
related to the Group's long-term incentive plans. The Group's earnings before
interest and taxes (EBIT) were EUR 56 million (EUR 45 million). Positive foreign
currency translation impact on Group's EBIT was EUR 3 million.
EBIT by business segment
EUR million Q4 2015 Q4 2014 Change Of Group in Q4 2015
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Foodservice Europe-Asia-Oceania 10.3 13.0 -21% 17%
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North America 23.2 8.6 170% 39%
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Flexible Packaging 18.3 12.4 48% 31%
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Molded Fiber 8.0 10.0 -20% 13%
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Other acitivities -4.1 1.3
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Group 55.7 45.3 23%
Net financial expenses were EUR 7 million (EUR 8 million). Tax expense was EUR
8 million (EUR 4 million positive).
Profit for the quarter was EUR 40 million (EUR 42 million). Earnings per share
(EPS) were EUR 0.38 (EUR 0.39 and EUR 0.40 including discontinued operations).
Financial review FY 2015
The Group's comparable net sales growth was 4% during the year. All business
segments contributed relatively evenly to the net sales growth. Comparable
growth in emerging markets was 6%, driven by good development in Eastern Europe,
Southeast Asia and South America. Net sales development was relatively flat in
India and negative in China. The Group's net sales grew to EUR 2,726 million
(EUR 2,236 million). Positive Packaging contributed EUR 203 million on the
Group's net sales. Foreign currency translation impact on the Group's net sales
was EUR 194 million compared to the 2014 exchange rates. The foreign currency
translation impact weakened towards the end of the year. The majority of the
currency impact came from the strengthening of the US dollar versus euro.
Net sales by business segment
EUR million FY 2015 FY 2014 Change Of Group in FY 2015
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Foodservice Europe-Asia-Oceania 667.5 620.4 8% 24%
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North America 947.7 769.4 23% 35%
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Flexible Packaging 868.9 618.0 41% 32%
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Molded Fiber 260.3 247.0 5% 9%
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Elimination of internal sales -18.0 -19.1
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Group 2,726.4 2,235.7 22%
The Group's earnings were on a good level and grew throughout the year. Earnings
improvement was strongest in the North America business segment, followed by
Flexible Packaging business segment with good organic growth development as well
as acquired growth brought by Positive Packaging. Earnings declined in the
Foodservice Europe-Asia-Oceania and Molded Fiber business segments. The impact
of Other activities in the Group's earnings was primarily due to expenses
related to the Group's long-term incentive plans. The Group's EBIT was EUR 238
million, excluding NRI of EUR -23 million (EUR 175 million). Positive foreign
currency translation impact on the Group's EBIT was EUR 16 million.
EBIT by business segment
EUR million FY 2015 FY 2014 Change Of Group in FY 2015
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Foodservice Europe-Asia-Oceania 52.4 57.4 -9% 22%
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North America 88.2 38.4 130% 36%
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Flexible Packaging 68.8 45.5 51% 28%
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Molded Fiber 33.5 35.0 -4% 14%
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Other activities -5.4 -1.4
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Group 237.5 174.9 36%
Other activities EBIT excluding NRI of EUR -22.6 million in FY 2015.
Net financial expenses increased to EUR 34 million (EUR 29 million). The payment
of purchase price for Positive Packaging led to a higher amount of net debt and
thus higher financial expenses. Tax expense was EUR 29 million (EUR 15 million).
The corresponding tax rate was 16% (10%).
Profit for the year was EUR 151 million, including NRI of EUR -23 million (EUR
132 million). EPS excluding NRI were EUR 1.65 (EUR 1.24). Reported EPS were EUR
1.43 (EUR 1.24). Including discontinued operations, the reported EPS was EUR
1.42 (EUR 1.33).
Significant events during the reporting period
On June 24, 2015 the European Commission announced the outcome of its
investigations on anticompetitive behavior in the markets of plastic trays used
for retail packaging. Huhtamäki Oyj had received in September 2012 the European
Commission's statement of objections concerning alleged anticompetitive behavior
in the markets of plastic trays used for retail packaging of fresh food during
years 2000-2008. The European Commission found certain of Huhtamaki's former
operations to have been involved in anticompetitive practices. The concerned
operations are no longer part of Huhtamaki as they were part of the Group's
rigid consumer goods business in Europe that was closed down or divested in
years 2006 and 2010. Based on infringements in North-West Europe and France
during years 2002-2006 the European Commission imposed a EUR 15.6 million fine
on Huhtamaki. The fine and legal costs of EUR 3 million related to the
investigation and the appeal process were recognized as a non-recurring expense
in the Group's Q2 2015 result and the payment of the fine was made during Q3
2015. Huhtamaki has launched an appeal against the decision before the General
Court of the European Union.
Outlook for 2016
The Group's trading conditions are expected to remain relatively stable during
2016. 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 2015 with
the majority of the investments directed to business expansion.
Dividend proposal
On December 31, 2015 Huhtamäki Oyj's non-restricted equity was EUR 696 million
(EUR 743 million). The Board of Directors will propose to the Annual General
Meeting that a dividend of EUR 0.66 (EUR 0.60) per share be paid.
Annual General Meeting 2016
The Annual General Meeting of Shareholders will be held on Thursday, April
21, 2016 at 13.00 (EET) at Finlandia Hall, Mannerheimintie 13e, in Helsinki,
Finland.
Financial reporting in 2016
Annual Accounts and Directors' Report 2015 will be published during week 8 on
Huhtamaki's website at www.huhtamaki.com.
In 2016, Huhtamaki will publish the following interim reports during the course
of the year:
Interim Report, January 1-March 31, 2016 April 21
Interim Report, January 1-June 30, 2016 July 22
Interim Report, January 1-September 30, 2016 October 26
This is a summary of Huhtamäki Oyj's Results January 1 - December 31, 2015. 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 71 manufacturing units and 23 sales offices in 34 countries, we're
well placed to support our customers' growth wherever they operate. Mastering
three distinctive packaging technologies, approximately 15,800 employees develop
and make packaging that helps great products reach more people, more easily. In
2015 our net sales totaled EUR 2.7 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.
[HUG#1985115]
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