DGAP-News: Mayr-Melnhof Karton AG / Key word(s): Quarter Results - Results close to last year's high level - Solid sales and volumes - Acquisition of cosmetics packaging site in Poland - Expectations for 2017 intact The Mayr-Melnhof Group was able to continue the ongoing improvement over the course of the year with the good third quarter and, as expected, after three quarters draw close to the high level of the previous year's results. Both divisions contributed to maintaining the Group's profitability with overall good utilization of the plant capacities and consistent price and cost management. Moreover, the cartonboard division succeeded in gradually compensating the sharp price increase for the strategic raw material of recovered paper. With the acquisition of a packaging site for cosmetic and personal care products in Bydgoszcz, Poland, MM Packaging continued to expand its portfolio in the high-grade product segment. The folding carton company most recently generated annual sales of around EUR 16 million. The seller was ASG Poland. The company, MMP Premium Polska, will be integrated into the Group from the 4th quarter of 2017. The aim is to generate new growth and value creation potential through integration and productivity increase with now four packaging sites in Poland. Furthermore, as a result of ongoing investment activity organic growth opportunities have been enhanced in and outside of Europe. Our goal for 2017, to reach the result of the previous year as best as possible, remains unchanged. Group Key indicators (IFRS, unaudited) consolidated in millions of EUR 1-3 Q/2017 1-3Q/2016 +/- Sales 1,749.1 1,713.8 +2.1 % Operating Profit 158.9 160.2 -0.8 % Operating margin (in %) 9.1% 9.3% Profit before tax 151.9 155.9 -2.6 % Profit for the period 113.3 115.5 -1.9 % Earnings per share (in EUR) 5.65 5.76 The Group's consolidated sales totaled EUR 1,749.1 million and were thus 2.1 %, or DEVELOPMENT IN THE THIRD QUARTER Improved demand dynamics and high capacity utilization characterized the development in both divisions throughout the third quarter. Due to continuing high capacity utilization, improved average prices and optimization measures, the cartonboard division succeeded in increasing its operating margin compared to the third quarter of the previous year to 7.4 % (3Q 2016: 6.0 %), respectively maintaining the good level of the previous quarter (2Q 2017: 7.3 %). Capacity utilization was at 98 % (2Q 2017: 99 %; 3Q 2016: 98 %). The operating margin of MM Packaging developed persistently solid with 10.3 % (2Q 2017: 9.8 %; 3Q 2016: 10.0 %). The Group's operating profit amounted to EUR 56.8 million (2Q 2017: EUR 51.5 million; 3Q 2016: EUR 49.4 million), thus an operating margin of 9.5 % (2Q 2017: 9.1 %; 3Q 2016: 8.6 %) was achieved. At EUR 41.4 million, the profit for the period exceeded the comparative figure of the previous year (3Q 2016: EUR 35.1 million) as well as the figure of the previous quarter (2Q 2017: EUR 35.0 million). OUTLOOK After a pickup in the middle of the year, the volume of incoming orders settled again to a stable level. General conditions, however, continue to be marked by intense competition, and require continuous measures for improvement in cost efficiency and product optimization. MM Karton as well as MM Packaging are successful in maintaining their profile in this, with future business performance likely to be characterized by continuity. Despite a slight easing in peak prices for recovered paper, fiber costs are currently still at a high level. Our aim for 2017, to reach the record result of 2016, remains intact, but owing to the strong closing quarter of the previous year further on challenging.
Forthcoming results: For further information, please contact:
Stephan Sweerts-Sporck
15.11.2017 Dissemination of a Corporate News, transmitted by DGAP - a service of EQS Group AG. |
Language: | English |
Company: | Mayr-Melnhof Karton AG |
Brahmsplatz 6 | |
1040 Wien | |
Austria | |
Phone: | 0043 1 501 36 91180 |
Fax: | 0043 1 501 36 91391 |
E-mail: | investor.relations@mm-karton.com |
Internet: | www.mayr-melnhof.com |
ISIN: | AT0000938204 |
WKN: | 93820 |
Indices: | ATX |
Listed: | Regulated Unofficial Market in Berlin, Frankfurt (Basic Board), Munich, Stuttgart; Wien (Amtlicher Handel / Official Market) |
End of News | DGAP News Service |
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