Mayr-Melnhof Karton (MMK) Q3 2024 earnings summary

Executive summary

• Group sales for Q1-3 2024 declined 4.0% year-over-year to €3,068.8 million, mainly due to lower selling prices despite higher volumes in Board & Paper.

• Market leader in fiber-based consumer packaging with a diversified portfolio, global presence, and focus on efficiency, innovation, and sustainability.

• Operates in three divisions: Food & Premium Packaging, Pharma & Healthcare Packaging, and Board & Paper, with 70 locations and 14,865 employees worldwide.

• Annual maintenance downtime in Board & Paper impacted Q3 results by €25 million.

• Cost savings and targeted price increases are expected to support results in 2025.

Financial highlights

• Adjusted EBITDA fell 17.6% to €295.7 million, margin down to 9.6% from 11.2% year-over-year.

• Adjusted operating profit declined 33.7% to €126.3 million; margin at 4.1% (down from 6.0%).

• Earnings per share dropped 43.6% to €2.54; free cash flow negative at €-18.8 million.

• Capital expenditures for Q1-3 2024 were €191.3 million, with full-year CapEx expected at €250 million, below previous guidance.

• Net debt increased to €1,380.2 million; equity ratio improved to 41.6%.

Outlook and guidance

• Subdued market dynamics and weak consumer demand expected to persist into 2025.

• Board & Paper division anticipated to return to slightly positive results in Q4 2024 after maintenance impact.

• Majority of cost savings from profit and cash protection programs expected to materialize in 2025.

• Price increases are being implemented to offset elevated fiber and personnel costs, with major impact expected next year.