Healthy demand for consumer packaging helped Finnish packaging producer Huhtamaki (Espoo; www.huhtamaki.com) achieve a 23% year-on-year increase in operating profit (EBIT) to EUR 49.3m in the second quarter of 2012 on sales up 17% at EUR 681m. Operating profit in the first half of the year was EUR 83.2m, compared with EUR 67.4m in the first six months of 2011, on sales of EUR 1.17 bn, a 16% year-on-year increase. The company said there were some signs of cautiousness towards the end of the period as customers avoided inventory building.

Half of the second quarter sales growth was attributable to businesses acquired in the previous 12 months, including Brazilian hygiene film manufacturer Prisma Pack Indústria de Filmes Técnicos e Embalagens (Camaçari, Bahia; www.prismapack.com.br) for BRL 47m (EUR 20m) – see Plasteurope.com of 16.08.2011. Organic sales growth was 6%, with the flexible packaging and moulded fibre segments making the largest contributions. Earnings growth was strongest in the foodservice Europe-Asia-Oceania segment, where acquired businesses made a positive contribution, the company said.

Operating profit in the flexible packaging segment rose by 16% year-on-year to EUR 23.5m, on sales up 5% at EUR 304m. The segment’s earnings continued to grow as a result of volume growth and favourable product mix, while sales growth was strongest in Asia despite continued negative effect of adverse currency translations.

In the films segment, operating profit rose by 12% to EUR 5.6m on sales up 17% at EUR 101m. Earnings and sales growth in the second quarter was due mainly to good performance in North America. Sales were also boosted by the acquisition of Prisma Pack Indústria de Filmes Técnicos e Embalagens.

Earnings in the foodservice Europe-Asia-Oceania segment increased by 56% to EUR 16.2m thanks to restructuring activities in the segment’s plastics unit in Germany as well as continued positive development in eastern and southern Europe and the acquisition of disposable packaging manufacturer Josco (Hong Kong; www.josco.com.hk) in Asia, which has been consolidated in the segment. Sales in the segment increased by 12% to EUR 291m due to continued growth in eastern Europe, particularly Russia, and the Josco acquisition, which was completed on 1 April 2012 – see Plasteurope.com of 26.03.2012.

In North America, operating profit rose by 33% to EUR 30.4m, driven by volume growth, on sales up 36% at EUR 346m. Currency translations had a positive impact of EUR 26m on the segment’s sales.

Looking forward, the company expects trading conditions to remain relatively stable during the remainder of 2012. Net sales growth is forecast to continue and earnings per share are expected to increase significantly compared with 2011. Capital expenditure is expected to be below EUR 100m.