Finnish packaging producer Huhtamaki (Espoo / Finland; www.huhtamaki.com) had a favourable business result last year. "2016 was another record year for Huhtamaki," CEO Jukka Moisio said. "Our net sales and profitability reached all-time-high levels and met the mid-term ambitions set in early 2015," he said. Group net sales rose 5.1% to EUR 2.86 bn, EBIT was 24% higher at EUR 266m and net profit was up 28% at EUR 191m.

All segments at Huhtamaki increased their profit margins. At Foodservice Europe-Asia-Oceania, which incorporates its plastics activities, net sales rose 11% to EUR 741m and EBIT was up 17% at EUR 61.5m. Sales at the specialty coffee and quick-service restaurant (QSR) units were particularly good in eastern Europe, while the business in western Europe remained relatively stable. In emerging markets, developments in demand varied. Some activities in New Zealand and China, where the facility in Guangzhou will be expanded (see Plasteurope.com 21.09.2016), negatively affected segment earnings. Currency movements had an adverse translation impact of EUR 31m on the segment's reported net sales.

In the Flexible Packaging division, sales were unchanged at EUR 869m while EBIT rose 7.3% to EUR 73.8m. In Europe, demand was moderate, while in Southeast Asia it was relatively positive. In India, business developed favourably until November when the Indian government sought to fight corruption and the black market by voiding some bank notes. The resulting cash shortage crimped demand. Uncertainty in the trading environment due to currency fluctuations as well as tighter foreign exchange controls also had a negative impact on exports to African markets. The division is setting up a large factory in Egypt and two production facilities in northern India (see Plasteurope.com of 27.10.2016)

The North America division increased sales by 6.1% to EUR 1.01 bn while EBIT grew 22% to EUR 108m. It invested around USD 100m (EUR 94m) in the construction of a new manufacturing and distribution facility for plastic cups and lids in Goodyear, Arizona / USA (see Plasteurope.com of 23.09.2016).