EQS-News: Mayr-Melnhof Karton AG: Annual Results 2021
EQS-News: Mayr-Melnhof Karton AG / Key word(s): Annual Results
Mayr-Melnhof Karton AG: Annual Results 2021
15.03.2022 / 07:55
The issuer is solely responsible for the content of this announcement.
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• Significant increase in sales and profit
• Strategic acquisitions Kwidzyn and Kotkamills integrated
• Dividend increase to EUR 3.50/share proposed
• Strong demand at Board & Paper and Packaging
• Massive input cost inflation passed on gradually
• Strategic focus on increased competitiveness, growth and profitability
The MM Group was able to overall successfully close the financial year 2021, which was
characterized by historically unprecedented cost increases, in particular for energy,
recovered paper and pulp. The strong pressure on margins was successively compensated for
by price increases, which could only be implemented with a time lag due to contractual
commitments. The continuing strong demand for cartonboard packaging and papers and thus
high capacity utilization in both divisions provided significant support in this respect.
The growth in operating profit by 16.5 % to EUR 269.6 million is attributable to both
divisions. While MM Packaging recorded a rather robust ongoing development, the increase
in profit of MM Board & Paper is mainly attributable to one-off effects of structural
changes.
With the acquisition of the cartonboard and paper mills Kwidzyn in Poland and Kotkamills
in Finland as well as the sale of the two smaller cartonboard mills, Baiersbronn and
Eerbeek, and the launching of several major investments to increase efficiency,
innovation, and sustainability, 2021 was a year of significant strategic transformations
at MM in addition to operational challenges. The fundamental objective is to enable
long-term growth in sustainable fiber-based packaging solutions as well as an increase in
profitability through intensified competitiveness.
Through the acquisitions in the virgin fiber sector, MM has not only strengthened its
position as the leading cartonboard and folding carton producer in Europe, but also
acquired two new core products, kraft papers and uncoated fine papers, which offer
interesting potential and are managed in the division MM Board & Paper.
In line with the solid profit development, a dividend increase to EUR 3.50 per share
(2020: EUR 3.20) for the financial year 2021 will be proposed to the 28^th Annual General
Meeting on April 27, 2022.
Group key indicators – IFRS
(consolidated, in millions of EUR)
2021 2020 +/-
Sales
3,069.7 2,528.4 + 21.4 %
EBITDA 421.0
398.9 + 5.5 %
Operating profit 269.6
231.4 + 16.5 %
Operating margin (in %) 8.8 %
9.2 % – 37 bp
Profit before tax 244.5
222.1 + 10.1 %
Income tax expense (53.8)
(59.8)
Profit for the year 190.7
162.2 + 17.5 %
Earnings per share (in EUR) 9.46
8.06
INCOME STATEMENT
The Group’s consolidated sales reached EUR 3,069.7 million which is 21.4 % or EUR 541.3
million above the previous year’s figure (2020: EUR 2,528.4 million). This increase was
mainly acquisition-related from the division Board & Paper.
At EUR 269.6 million operating profit was 16.5 % or EUR 38.2 million above the previous
year (2020: EUR 231.4 million). Around 55 % of this increase is attributable to MM Board &
Paper and around 45 % to MM Packaging. One-off expenses from the initial consolidation of
the mills Kwidzyn and Kotkamills in the amount of EUR 26.3 million, which are mainly
attributable to ancillary acquisition costs including transaction taxes and inventory
valuation, as well as restructuring expenses in the division MM Packaging of EUR 20.1
million were offset by one-off income from the sale of the Eerbeek and Baiersbronn mills
in the amount of EUR 46.1 million (after incidental transaction costs). In 2020, one-off
effects amounted to EUR -64.0 million. The Group’s operating margin was therefore at 8.8 %
(2020: 9.2 %), the return on capital employed at 12.8 % (2020: 13.7 %). EBITDA rose by 5.5
% or EUR 22.1 million to EUR 421.0 million (2020: EUR 398.9 million), the EBITDA margin
reaching 13.7 % (2020: 15.8 %).
Financial income of EUR 3.3 million (2020: EUR 1.7 million) was contrasted with financial
expenses of EUR -24.4 million (2020: EUR -7.9 million). The latter increased mainly due to
the issuance of Schuldschein loans and Namensschuldverschreibungen to finance the
acquisitions and organic growth projects. „Other financial result – net“ amounted to EUR
-4.0 million (2020: EUR -3.2 million), mainly attributable to changes in the foreign
currency result.
Accordingly, profit before tax at EUR 244.5 million was 10.1 % higher than in the previous
year (2020: EUR 222.1 million). Income tax expenses totaled EUR 53.8 million (2020: EUR
59.8 million), resulting in an effective Group tax rate of 22.0 % (2020: 27.0 %). The
reduction compared to the previous year is mainly due to tax-free income from company
disposals.
Profit for the year rose by 17.5 % or EUR 28.5 million to EUR 190.7 million (2020: EUR
162.2 million).
DEVELOPMENT IN THE 4^TH QUARTER 2021
The 4^th quarter 2021 was characterized by continuous strong demand in both divisions.
Consolidated sales of EUR 962.6 million were mainly acquisition-related above last year’s
period (4^th quarter 2020: EUR 624.9 million).
The Group’s operating profit increased to EUR 92.4 million (4^th quarter 2020: EUR 62.1
million), while the operating margin at 9.6 % was slightly below previous year’s level
(4^th quarter 2020: 9.9 %). Profit before tax amounted to EUR 82.1 million (4^th quarter
2020: EUR 61.5 million), profit for the period to EUR 62.3 million (4^th quarter 2020: EUR
45.9 million).
MM Board & Paper recorded a capacity utilization of 97 % after 96 % in the 4^th quarter of
the previous year. Due to acquisitions, the operating profit of the division reached EUR
33.4 million after EUR 18.3 million. The 4^th quarter was again characterized by a
significant rise in costs, particularly for energy, which could not be compensated for by
the price increases implemented so far. The operating margin therefore amounted to 5.9 %
(4^th quarter 2020: 7.2 %).
With a solid volume development, the operating profit of MM Packaging at EUR 59.0 million
was above the previous year’s figure in particular due to a better product mix and the
adjustment of the restructuring provision (4^th quarter 2020: EUR 43.8 million). The
operating margin amounted to 13.7 % (4^th quarter 2020: 11.0 %).
OUTLOOK ON THE FINANCIAL YEAR 2022
Demand and order situation for the products of both divisions have remained in good shape
since the beginning of the year. The price increases necessary in view of massive cost
increases, especially the extraordinary rise in energy prices, could be implemented for
the 1^st quarter. In addition, a further cartonboard price increase is planned for the
2^nd quarter in order to compensate for the cost inflation which has been going on since
the beginning of the year. Also in Packaging we are continuously increasing prices. Due to
some long-term contracts with price indices not covering all costs and delays of passing
on higher costs, we expect a lower operating margin at least for the first half of
2022. As a result of widely booked capacities and longer delivery times, our customers
continue to focus on supply security, a demand that we meet with the highest possible
flexibility and transparency.
Due to capacity limitations, the Group’s sales volume can only increase gradually.
However, the expansions recently initiated at several MM Packaging plants should enable
more business in the course of the year. At MM Board & Paper, where the investment focus
is on efficiency improvements and optimization of the product portfolio, the expansive
effects will only gradually take effect from 2023 onwards.
As already indicated, due to intensified investment activity in increasing competitiveness
and growth, investments in a range of EUR 250 – 300 million p.a. can also be assumed for
2022 and 2023. At MM Board & Paper, in addition to the major investments in Frohnleiten,
Neuss, and Kolicevo, the focus is also placed on projects at the new acquisitions MM
Kotkamills and MM Kwidzyn in order to be able to utilize attractive potentials in a timely
manner. At MM Packaging, in Poland we are pursuing a doubling of the large site in
Bydgoszcz as well as the construction of a new packaging plant near Warsaw in order to
participate in the market growth in Central-Eastern Europe and to take advantage of more
favorable costs. In addition, sites in Great Britain, Austria and Romania are expanded to
critical size.
The orientation of the MM Group towards a long-term moderate growth course has proven
successful and will be further pursued. While at MM Board & Paper the emphasis is
currently on the integration of the new acquisitions, the market presence of MM Packaging
is also to be expanded through acquisitions. The focus on optimizing cost structures,
digitalization, and innovative, sustainable packaging products to replace plastic
packaging will be consistently continued.
In view of ongoing cost inflation and further developments that are difficult to predict,
the focus remains on compensating this weight by increasing selling prices as quickly as
possible and reducing structural costs in order to catch up again in terms of margins.
The MM Group closely monitors the developments in Russia and Ukraine as well as the
international measures and possible impacts on the Group. MM cumulatively generates
approx. 9 % of the Group’s EBITDA in Russia and Ukraine. In Russia, packaging products for
the local demand of daily consumer goods are produced at two sites, St. Petersburg and
Pskov. A downtime has to be expected. MM has stopped all cartonboard deliveries to Russia.
In Ukraine, where MM produces packaging at the Cherkassy site in the center of the
country, operations are currently very limited.
The press release and a video statement by the Management Board are available on the
internet under www.mm.group.
The Annual Report 2021 will be available as of April 6, 2022.
Forthcoming Results:
April 26, 2022 Results for the 1^st quarter of 2022
For further information, please contact:
Stephan Sweerts-Sporck
Investor Relations
Mayr-Melnhof Karton AG
Brahmsplatz 6
A-1040 Vienna
Tel.: +43 1 501 36-91180
E-Mail: investor.relations@mm.group,
Website: https://www.mm.group
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15.03.2022 This Corporate News was distributed by EQS Group AG. www.eqs.com
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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.group
Internet: www.mm.group
ISIN: AT0000938204
WKN: 93820
Indices: ATX
Listed: Regulated Unofficial Market in Berlin, Frankfurt (Basic
Board), Munich, Stuttgart; Vienna Stock Exchange (Official
Market)
EQS News ID: 1301783
End of News EQS News Service
1301783 15.03.2022
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