Healthy demand for consumer packaging and volume growth helped Finnish packaging producer Huhtamaki (Espoo; www.huhtamaki.com) achieve a 24% year-on-year increase in operating profit (EBIT) to EUR 33.9m in the first three months of 2012, on sales up 15% at EUR 550m. The company said trading conditions in the period had remained stable despite the general economic uncertainty and that raw material prices started to increase at the beginning of the year, a trend which continued through the quarter.

Organic sales growth was 7% in the period, led by gains in North America. Acquired businesses contributed a further 6% and there was a 2% positive gain from foreign exchange movements. Sales grew across all segments. In flexible packaging, growth was especially strong in Europe, where the group also posted gains in operating profit. The films segment saw positive sales development due to good performance in North America, but the segment’s earnings declined slightly. However, there was an improvement in volumes and earnings in the films segment compared to the fourth quarter of 2011.

Operating profit in the North American segment grew at over 50% year-on-year, reaching EUR 10.1m in the quarter, on sales up 40% at EUR 157m. Growth was particularly high in the retail business, the company said, led by its “Chinet” branded range. Sales of ice cream packaging were also strong and the folding carton packaging businesses acquired in the US during 2011 – Paris Packaging (Paris, Texas) and Ample Industries (Franklin, Ohio), see Plasteurope.com of 20.02.2012 – contributed to the growth of the foodservice business.

In March, the company acquired Josco (Holdings) Limited, a major Asian foodservice packaging supplier, its fourth acquisition in nine months – see Plasteurope.com of 26.03.2012.

Huhtamaki said it expected trading conditions to remain relatively stable during 2012 and that growth in sales is expected to continue during the year.