Go to
Newsroom

Results for the first quarter of 2021

  • Ongoing good demand and capacity utilization
  • Sales and result slightly below previous year
  • Significant increase in input prices weighs on profit of MM Karton
  • Price increases in both divisions in implementation
  • Result of the 2nd quarter expected below 1st quarter

The Mayr-Melnhof Group recorded overall high capacity utilization with robust demand for cartonboard packaging in the 1st quarter of 2021. Sales and operating profit were slightly below the previous year's level. An increase in result in the packaging division was offset by a significant decline in the cartonboard division.

In the cartonboard division, the drastically rising prices of recovered paper over the last few months, but also higher prices for energy, pulp, chemicals and logistics, led to a significant cost inflation after last year's cost deflation. For this reason, MM Karton has already increased the prices for recycled fiber-based cartonboard in two steps, effective in the 2nd quarter and again in the middle of the year. In the case of virgin fiber-based cartonboard, prices are also to be increased in the middle of the year where there is no longer-term validity. The cost increases for cartonboard, paper, inks and varnishes, which are clearly noticeable by MM Packaging in the 2nd quarter, will mainly be passed on from the middle of the year onwards.

The objective is to return in the second half of the year 2021 to the earnings level of the 1st quarter in the Group's current business after an expected decline in result in the 2nd quarter.

Group Key Indicators - IFRS

consolidated, in millions of EUR, IFRS

1Q/20211Q/2020

+/-

Sales641.3646.6-0.8 %
EBITDA92.798.9-6.3 %
Operating profit61.264.6-5.2 %
Operating margin (in %)9.6 %10.0 %-44 bp
Profit before tax58.662.8-6.7 %
Income tax expense(14.7)(17.7) 
Profit for the period43.945.1-2.8 %
Net profit margin (in %)6.8 %7.0 % 
Earnings per share (in EUR)2.182.25 
Cash flow from operating activities77.884.5-7.9 %
Employees10,0229,9381) 
Capital expenditures (CAPEX)60.331.2 
Depreciation and amortization31.534.3 

 1) as of December 31, 2020

 

Consolidated sales of the Group amounted to EUR 641.3 million in the first three months of 2021, almost reaching the previous year’s level (1Q 2020: EUR 646.6 million).

At EUR 61.2 million, the operating profit was 5.2 % or EUR 3.4 million below the comparative value of the previous year (1Q 2020: EUR 64.6 million). An increase in the packaging division was contrasted by a decline in the cartonboard division. In the previous year, one-off expenses in the amount of EUR -8.6 million were included, which were divided equally between the two divisions. The Group's operating margin was at 9.6 % (1Q 2020: 10.0 %).

Financial income of EUR 0.5 million (1Q 2020: EUR 0.4 million) contrasted with financial expenses of EUR -3.6 million (1Q 2020: EUR -2.1 million). "Other financial result – net" amounted to EUR 0.5 million (1Q 2020: EUR -0.1 million).

Accordingly, profit before tax at EUR 58.6 million was 6.7 % below the previous year’s value (1Q 2020: EUR 62.8 million). Income tax expense amounted to EUR 14.7 million (1Q 2020: EUR 17.7 million), resulting in an effective Group tax rate of 25.2 % (1Q 2020: 28.2 %).

Profit for the period decreased slightly from EUR 45.1 million to EUR 43.9 million.

Outlook

With well-filled order books, we see growing demand for cartonboard and packaging also in 2021. In view of the continuing increase in input prices for fibers, energy, chemicals and logistics, the focus is currently on passing them on. The objective is to return in the second half of the year 2021 to the earnings level of the 1st quarter in the Group's current business after an expected decline in result in the 2nd quarter.

In addition to the necessary price increases, our intensified investments in the future and growth projects in several mills of MM Karton and MM Packaging got off to a good start. As reported, the main emphasis is on improving cost structures and increasing market penetration with sustainable, innovative fiber-based packaging solutions. However, this is also accompanied by selective adjustment and restructuring measures in the portfolio, as currently planned at MM Graphia Bielefeld in the 2nd quarter. By relocating the production volume to other MM Packaging sites in Germany, but also in Russia, Ukraine and Asia, competitiveness is to be increased. This measure is expected to result in one-off expenses of EUR 25 – 30 million in the 2nd quarter.

The closing of the Kotkamills acquisition in Finland continues to be expected in the middle of the year and that of Kwidzyn in Poland in the 3rd quarter of 2021.

Development in the Divisions

MM Karton

in millions of EUR, IFRS

1Q/20211Q/2020+/-
Sales1)271.4273.5 -0.8 %
Operating profit19.834.1 -41.9 %
Operating margin (in %)7.3 %12.5 %-518 bp
Cash flow from operating activities23.130.4-23.8 %
Tonnage sold (in thousands of tons)432444-2.6 %
Tonnage produced (in thousands of tons)410435-5.7 %

1) including interdivisional sales 

 

Demand on the European cartonboard markets has been characterized by strong order activity since the beginning of the year. Therefore, the division's average order backlog of 149,000 tons in the 1st quarter of 2021 was significantly above the comparative figure of the previous year (1Q 2020: 94,000 tons). At 99 % (1Q 2020: 98 %), the division's capacities were almost fully utilized.

Due to the drastic price increase on the procurement markets, in particular for fibers (recovered paper, pulp), MM Karton has been implementing price increases effective from the 2nd quarter of 2021, respectively the middle of the year. Reasons for the significant rise in prices of recovered paper are mainly the strong demand from the corrugated board industry, higher demand from Asia, as well as the decline in volumes of magazine papers and newsprint.

Both the volume produced and sold were slightly below the previous year's period at 410,000 tons and 432,000 tons, respectively (1Q 2020: 435,000 tons and 444,000 tons, respectively). This decline mainly results from the shutdown of cartonboard production at the Hirschwang site in fall of the previous year. With a sales share of approx. 87 % in Europe and 13 % in markets outside Europe, slightly more was sold again in the European markets (1Q 2020: 85 % and 15 %, respectively).

At EUR 271.4 million, sales almost reached the previous year’s level (1Q 2020: EUR 273.5 million). The decline in the operating profit from EUR 34.1 million to EUR 19.8 million is particularly attributable to the significant increase in direct costs, which will be offset by gradually higher prices from the 2nd quarter onwards. Thus, the operating margin amounted to 7.3 % (1Q 2020: 12.5 %).

MM Packaging

in Mio. of EUR, IFRS1Q/20211Q/2020+/-
Sales1)399.3401.7-0.6 %
Operating profit41.430.5+36.0 %  
Operating margin (in %)10.4 %7.6 %+279 bp
Cash flow from operating activities54.754.1+1.1 %
Tonnage processed (in thousands of tons)216209+3.2 %

1) including interdivisional sales

 

The good sales development of cartonboard packaging for consumer staples (fast moving consumer goods and e-commerce) also continued in the 1st quarter of 2021. In addition, the markets Health, Beauty & Personal Care show a lasting improvement, respectively a recovery.

On the other hand, the clearly progressing cost inflation is also becoming an increasing challenge for MM Packaging. While the effects of this were manageable in the 1st quarter, the current significant rise in input costs, such as for cartonboard, paper, inks, varnishes and packaging material requires a passing on to customers, which will largely take place from the middle of the year onwards in accordance with contractual agreements.

Our expansion investments in sites with cost advantages and the focus on growth markets such as sustainable plastic-free packaging or e-commerce applications were successfully launched in Austria, Poland, Romania and the United Kingdom. At the same time, necessary structural adjustment measures to increase competitiveness and secure the existing business are being continued. Thereby, MM is committed to socially responsible solutions.

While sales at EUR 399.3 million were at the previous year’s level (1Q 2020: EUR 401.7 million), operating profit increased significantly by 36.0 % or EUR 10.9 million to EUR 41.4 million (1Q 2020: EUR 30.5 million). The operating margin went up accordingly to 10.4 % (1Q 2020: 7.6 %).

Tonnage processed rose by 3.2 % from 209,000 tons to 216,000 tons, mainly due to shifts in the product mix.

consolidated, in millions of  EUR, IFRS

1Q/20202Q/20203Q/20204Q/20201Q/2021
Sales646.6619.9637.0624.9641.3
EBITDA98.9112.895.491.892.7
Operating profit64.657.946.862.161.2
Operating margin (in %)10.0 %9.3 %7.3 %9.9 %9.6 %
Profit before tax62.854.942.961.558.6
Income tax expense(17.7)(15.1)(11.5)(15.6)(14.7)
Profit for the period45.139.831.445.943.9
Net profit  margin (in %)7.0 %6.4 %4.9 %7.4 %6.8 %
Earnings per share (in EUR)2.251.981.552.282.18
Cash flow from operating activities84.538.1101.194.577.8

 

in millions of EUR, IFRS1Q/20202Q/20203Q/20204Q/20201Q/2021
Sales1)273.5259.5264.4253.4271.4
Operating profit34.125.19.218.319.8
Operating margin (in %)12.5 %9.6 %3.5 %7.2 %7.3 %
Cash flow from operating activities30.422.345.528.123.1
Tonnage sold (in thousands of tons)444427423410432
Tonnage produced (in thousands of tons)435442421412410

1) including interdivisional sales

 

in millions of EUR, IFRS1Q/20202Q/20203Q/20204Q/20201Q/2021
Sales1)401.7391.9401.9398.7399.3
Operating profit30.532.837.643.841.4
Operating margin (in %)7.6 %8.4 %9.3 %11.0 %10.4 %
Cash flow from operating activities54.115.855.666.454.7
Tonnage processed (in thousands of tons)209211215212216

1) including interdivisional sales

 

Forthcoming Results:

August 19, 2021         Half-Year Results 2021 

 

Publication Mailing

To keep you regularly updated about company reports and press releases, we offer the subscription to our publication mailing for shareholders and stakeholders.

Get in contact with our press department!

We look forward to your message and always seek a prompt answer.

Contact Us
To the main navigation
Cookie settings

We use cookies to provide you with an optimal website experience. These include cookies that are necessary to operate the site, as well as those that are only used for anonymous statistical purposes, for convenience settings or to display personalized content. You can decide for yourself which categories you would like to allow and reset your selection at any time. Please note that depending on your settings, not all functionalities of the site may be available.

For more information, please see our privacy policy.

Notice regarding the transfer of your data collected on this website to third countries:

By clicking on "Confirm All" or "Statistics" and "Confirm Selection" you consent that your data collected on this website will also be processed in the USA in accordance with Article 49 (1) (a) of the General Data Protection Regulation (GDPR). In the USA GDPR does not apply and currently neither an adequate decision pursuant to Article 45 (3) GDPR nor appropriate safeguards according to Article 46 GDPR, including binding corporate rules exist. For example, Google processes this data in the USA. The European Court of Justice assesses the USA as a country with an insufficient level of data protection according to EU standards. In particular, there is a risk that U.S. authorities will process your data for control and monitoring purposes, possibly without any legal remedy. Nevertheless, if you do not select "Statistics" and click "Confirm selection", the transfer described above will not take place.

Technically necessary

These cookies are necessary for the functionality of our website (e.g. technical or security-related aspects). They serve as the operation of the website and make it functionally usable for you. This mainly includes basic functions such as navigation on the website. We cannot run the website correctly without using these cookies. Therefore, their use base upon our legitimate interest, because otherwise we cannot offer a properly functioning website.

The legal basis for the processing of such cookies is Article 6 (1) (f) GDPR.

Statistics

We use these cookies to improve our offers and our website. For instance, with the help of these cookies we can determine the number of visitors and the effect of certain pages of our website, create statistics and analyses and subsequently optimize our content. Statistics Cookies collect information about how websites are used in order to improve their attractiveness, content and functionality. We use them only with your consent, which you can revoke or reset at any time.

The legal basis for the processing of such cookies is Article 6 (1) (a) GDPR.

Personalization

We use these cookies to show you personalized content that matches your interests. This includes in particular the videos embedded on our website. We use them only with your consent, which you can revoke or reset at any time.

The legal basis for the processing of such cookies is Article 6 (1) (a) GDPR.

Explanation of cookies:

Cookies are text files that are stored on your end device, such as a PC, tablet or smartphone, when you visit a website with the help of your browser. Cookies consist of technical information that identifies you as a user. So-called session cookies, which are automatically deleted after closing the browser, differ from temporary or permanent cookies, which are stored on your end device for a longer or unlimited period. Cookies ensure that our website is able to identify and recognize the website users when visiting the website with the same device again. Cookies make sure that certain settings and data is provided automatically. Therefore, the information stored in cookies is transmitted either to the website visited ("first party cookie") or to another website to which the cookie set is assigned ("third party cookie").

However, you can select the browser settings to prevent the storage of statistics and personalization cookies. In this case, we will ask you each time when visiting the website whether you agree to the setting of cookies or not. In addition, you can revoke or reset the cookie settings at any time with future effect by reopening the cookie banner on our website or by using your browser settings. To do this, use the help function of your browser and follow the instructions.