In This Article:
Release Date: March 18, 2025
For the complete transcript of the earnings call, please refer to the full earnings call transcript.
Positive Points
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Mayr-Melnhof Karton AG (WBO:MMK) successfully navigated a challenging year by focusing on self-help and leveraging a 'stronger together' mindset.
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The Food and Premium Packaging division achieved market-leading returns through productivity increases, cost reductions, and superior service.
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The company made significant strides in sustainability, reducing absolute CO2 emissions by 35% year on year and achieving a AAA- leadership rating from CDP.
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A dividend increase of 20% to EUR1.80 per share was proposed, reflecting the company's net profit increase.
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The company successfully reduced net debt from EUR1.3 billion to below EUR1.1 billion, improving financial stability.
Negative Points
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The industry faced severe challenges, including reduced consumer spending, rising costs, and geopolitical uncertainties.
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The Pharma and Healthcare Packaging division experienced a 4.2% decline in volumes due to weaker demand and new machine startups.
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The European cartonboard market faced high overcapacities, weak demand, and higher imports, resulting in a small adjusted operating loss.
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Group sales decreased by 2% to EUR4.1 billion, reflecting the challenging market conditions.
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Despite cost-saving measures, the adjusted operating margin for MM Board and Paper remained constant at 1% due to lower average prices and higher costs.
Q & A Highlights
Q: Can you elaborate on the performance of the Food and Premium Packaging division in 2024? A: Peter Oswald, CEO: The Food and Premium Packaging division managed to grow volumes by 2.5% in a flat market. This growth, combined with cost savings, resulted in a solid adjusted operating margin of 10.5%, despite not reaching last year's record levels.
Q: What were the main challenges faced by the Pharma and Healthcare Packaging division? A: Franz Hiesinger, CFO: The Pharma and Healthcare Packaging division experienced a 4.2% decline in volumes due to weaker demand and the ramp-up of new machines. Despite these challenges, strict cost discipline helped maintain an adjusted operating margin of 4.8%.
Q: How did the MM Board and Paper division perform in the weak market environment? A: Peter Oswald, CEO: The division achieved a significant 17% increase in volume production, but lower average prices and higher costs for wastepaper and pipe offset these gains. The adjusted operating margin remained constant at 1%.