HUHTAMAKI
Small increase in earnings and sales in 2013 / Currency effects and slow start to year hit result / “Unsatisfactory” earnings in North America
Finnish packaging group Huhtamaki (Espoo; www.huhtamaki.com) has reported a 2% year-on-year increase in operating profit (EBIT), excluding non-recurring items, to EUR 167m on sales up only 1% at EUR 2.34 bn in 2013. Adverse currency translation negatively affected sales by EUR 84m over the year and organic net sales growth in constant currencies was 3%.
The company said that although trading conditions and raw materials prices had remained relatively stable, the start of the year was slow, with demand for consumer packaging improving as the year progressed. Fourth quarter operating profit was EUR 38m, up 5% year-on-year, although sales fell by 1% to EUR 568m in the period. Negative currency translation had a EUR 33m impact on fourth quarter sales.
Earnings growth continued in the foodservice Europe-Asia-Oceania and moulded fibre business segments, although ongoing investment costs led to an unsatisfactory result in the North America business segment despite strong sales growth. Adverse currency impact on operating profit was EUR 6m over the year and EUR 2m in the fourth quarter.
Sales growth was strongest in the moulded fibre business segment and all business segments, except films, reported growth. In emerging markets, organic growth at constant currencies was 8%, which increased to 14% in the final quarter.
Efficiency improvement measures were implemented during the year and as an outcome manufacturing units in Viul / Norway and Epping / South Africa were closed – see Plasteurope.com of 17.06.2013 and 18.03.2013. A strategic review of the company’s loss-making foodservice business in Italy was concluded and the business was divested – see Plasteurope.com of 01.11.2013.
Huhtamaki CEO Jukka Moisio said: “We succeeded in our key target of improving our financial result from the record achieved in 2012. Despite unfavourable 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.”
Looking forward he said the company will remain focused on growth with a mid-term target of EUR 3 bn in net sales and improved margins. It will also actively screen acquisition targets, he added.
e-Service:
Huhtamaki full year results as PDF
The company said that although trading conditions and raw materials prices had remained relatively stable, the start of the year was slow, with demand for consumer packaging improving as the year progressed. Fourth quarter operating profit was EUR 38m, up 5% year-on-year, although sales fell by 1% to EUR 568m in the period. Negative currency translation had a EUR 33m impact on fourth quarter sales.
Earnings growth continued in the foodservice Europe-Asia-Oceania and moulded fibre business segments, although ongoing investment costs led to an unsatisfactory result in the North America business segment despite strong sales growth. Adverse currency impact on operating profit was EUR 6m over the year and EUR 2m in the fourth quarter.
Sales growth was strongest in the moulded fibre business segment and all business segments, except films, reported growth. In emerging markets, organic growth at constant currencies was 8%, which increased to 14% in the final quarter.
Efficiency improvement measures were implemented during the year and as an outcome manufacturing units in Viul / Norway and Epping / South Africa were closed – see Plasteurope.com of 17.06.2013 and 18.03.2013. A strategic review of the company’s loss-making foodservice business in Italy was concluded and the business was divested – see Plasteurope.com of 01.11.2013.
Huhtamaki CEO Jukka Moisio said: “We succeeded in our key target of improving our financial result from the record achieved in 2012. Despite unfavourable 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.”
Looking forward he said the company will remain focused on growth with a mid-term target of EUR 3 bn in net sales and improved margins. It will also actively screen acquisition targets, he added.
e-Service:
Huhtamaki full year results as PDF
12.02.2014 Plasteurope.com [227524-0]
Published on 12.02.2014
German version of this article...