In This Article:
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Comparable Net Sales Growth (Q4 2024): 3% growth.
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Adjusted EBIT Growth (Q4 2024): 3% growth with a margin of 10.4%.
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Efficiency Program Savings: EUR 76 million savings achieved, ahead of schedule.
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Full-Year EPS Growth (2024): 7% increase, from EUR 2.32 to EUR 2.48.
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Net Debt (End of 2024): Decreased to approximately EUR 1.2 billion, a 5.5% reduction from the previous year.
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Dividend Proposal: Increase to EUR 1.10 per share, a 5% increase, with a yield of 3.2%.
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Capital Expenditure (2024): EUR 248 million, supporting organic growth.
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Tax Rate (2024): Slight increase to approximately 23% from 22% the previous year.
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Net Debt-to-EBITDA Ratio: Reduced to approximately 2.0, indicating improved leverage.
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Return on Equity and Investments: Trending positively, though still below long-term targets.
Release Date: February 14, 2025
For the complete transcript of the earnings call, please refer to the full earnings call transcript.
Positive Points
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Huhtamaki Oyj (STU:HUKI) reported a solid fourth quarter with a 3% growth in comparable net sales and a strong adjusted EBIT margin of 10.4%.
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The company successfully launched a cost-saving program in late 2023, achieving EUR76 million in savings, ahead of schedule, and expects to meet the EUR100 million target earlier than planned.
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Huhtamaki Oyj (STU:HUKI) has a strong dividend track record, with a proposed increase marking the 16th consecutive year of growth, offering a yield of 3.2%.
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The company is focusing on sustainability, with significant improvements in greenhouse gas emissions, particularly in Scope 1 and Scope 2.
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The fiber packaging segment showed strong performance with a 12% growth in Q4, benefiting from seasonality and increased pricing for recyclable fiber.
Negative Points
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The flexible packaging segment faced challenges, particularly in India and Turkey, where top-line growth and competitiveness need improvement.
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Despite positive volume growth, there was a slight negative impact on pricing and mix in the last quarter.
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Inflationary pressures continue to impact the market environment, affecting profitability and pricing strategies.
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The company has not met its long-term capital return targets from past investments, indicating a need for improved capital discipline.
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Huhtamaki Oyj (STU:HUKI) faces ongoing challenges in maintaining growth rates in line with its 5% to 6% medium-term target, with recent growth below expectations.
Q & A Highlights
Q: Could you provide a breakdown of the 3% organic growth in the last quarter between price and volume? A: The positive development in the last quarter was primarily driven by volume growth, with a slight negative impact from price and mix. (Thomas Geust, CFO)