GlobeNewswire

Huhtamäki Oyj’s Half-yearly Report January 1–June 30, 2021: Strong comparable net sales growth with improved profitability

Share

HUHTAMÄKI OYJ HALF-YEARLY REPORT 22.7.2021 AT 8:30

HuhtamäkiOyj’s Half-yearly Report January 1–June 30, 2021: Strong comparable net sales growth with improved profitability

Q2 2021 in brief

  • Net sales increased 10% to EUR 877 million (EUR 797 million)
  • Adjusted EBIT was EUR 80 million (EUR 70 million); reported EBIT was EUR 75 million (EUR 70 million)
  • Adjusted EPS was EUR 0.53 (EUR 0.44); reported EPS was EUR 0.50 (EUR 0.44)
  • Comparable net sales growth was 14% at Group level and 20% in emerging markets
  • The impact of currency movements was EUR -35 million on the Group’s net sales and EUR -4 million on EBIT

H1 2021 in brief

  • Net sales increased 2% to EUR 1,679 million (EUR 1,642 million)
  • Adjusted EBIT was EUR 157 million (EUR 144 million); reported EBIT was EUR 147 million (EUR 153 million)
  • Adjusted EPS was EUR 1.02 (EUR 0.90) reported EPS was EUR 0.95 (EUR 0.97)
  • Comparable net sales growth was 6% at Group level and 13% in emerging markets
  • The impact of currency movements was EUR -81 million on the Group’s net sales and EUR -8 million on EBIT

Key figures

EUR millionQ2 2021Q2 2020ChangeH1 2021H1 2020Change
Net sales877.1797.110%1,679.01,641.72%
Comparable net sales growth14%-8%6%-3%
Adjusted EBITDA1121.1112.18%238.8229.14%
Margin113.8%14.1%14.2%14.0%
EBITDA114.3113.01%229.1243.1-6%
Adjusted EBIT279.970.114%156.8143.79%
Margin29.1%8.8%9.3%8.8%
EBIT75.070.27%146.6152.7-4%
Adjusted EPS30.530.4421%1.020.9013%
EPS, EUR0.500.4412%0.950.97-2%
Adjusted ROI212.3%11.6%
Adjusted ROE315.6%14.2%
ROI10.1%11.6%
ROE12.7%14.3%
Capital expenditure51.840.329%84.979.77%
Free Cash Flow29.970.4-58%37.545.9-18%
1Excluding IAC of-6.80.9-9.714.0
2Excluding IAC of-4.90.1-10.39.0
3Excluding IAC of-3.80.1-7.97.0

Unless otherwise stated, all comparisons in this report are compared to the corresponding period in 2020. Figures of return on investment (ROI), return on equity (ROE) and return on net assets (RONA) as well as net debt to EBITDA presented in this report are calculated on a 12-month rolling basis.

The figures in the tables are exact figures and consequently the sum of individual figures may deviate from the sum presented. Key figures have been calculated using exact figures.

Charles Héaulmé, President and CEO

“We are pleased to deliver further net sales growth, beyond pre-COVID pandemic levels, and improved profitability while continuing to face a very challenging cost environment. Overall demand has supported growth. The global progress of vaccinations and removal of social mobility restrictions has benefited food on-the-go which has continued to gradually recover. However, the global food packaging market remains volatile with significant challenges in many countries still heavily impacted by the pandemic. This volatility is also evident in the supply chain with significant inflation in the prices of raw materials, especially polymers and recycled fiber.

Altogether our second quarter results were strong although with mixed performance across the different regions and businesses. Net sales increased 10%, amounting to EUR 877 million, reflecting the improved demand for foodservice packaging. Comparable net sales growth was 14%. This strong growth should be contextualized versus a depressed comparable period in 2020. Net sales for the first half of 2021 increased 2%, and 6% in comparable terms. The adjusted EBIT margin improved 0.3 p.p. to 9.1% in the second quarter and reached 9.3% in the first half of 2021. This was supported by a continued focus on operational efficiency and pricing actions to mitigate input cost inflation.

Huhtamaki’s robust performance supports investments for long-term sustainable growth. We continue to leverage our strong balance sheet to execute on our growth strategy. In May, we announced an investment in a new fiber packaging factory in South Africa. Our most recent acquisition, the asset purchase of the Chinese Jiangsu Hihio-Art Packaging, was completed in June. These strategic initiatives, together with investments announced in new manufacturing facilities in both Malaysia and Russia, strengthen our global manufacturing footprint and provide us with great opportunities to better serve both existing and new customers. We have also recently launched new products which further help plastic substitution in targeted markets. Our sustained innovation, our continued focus on operational efficiencies, with the support of our resilient business model, strong balance sheet and skilled employee base give me confidence that we face a bright perspective in terms of sustainable profitable growth.”

Financial reviewQ2 2021

Net sales by business segment

EUR millionQ2 2021Q2 2020Change
Foodservice Europe-Asia-Oceania235.8167.241%
North America295.2296.1-0%
Flexible Packaging270.7263.13%
Fiber Packaging80.475.76%
Elimination of internal sales-5.0-5.1
Group877.1797.110%


Comparable net sales growth by business segment

Q2 2021Q1 2021Q4 2020Q3 2020Q2 2020
Foodservice Europe-Asia-Oceania40%-2%-7%-1%-28%
North America9%-2%-2%4%-5%
Flexible Packaging6%0%0%1%2%
Fiber Packaging1%4%8%7%10%
Group14%-0%-2%2%-8%


The Group’s net sales increased 10% to EUR 877 million (EUR 797 million) during the quarter. Comparable net sales growth was 14%. Net sales growth was supported by improved demand for foodservice packaging, following the lifting of restrictions imposed due to COVID-19. Growth in retail tableware in North America continued to be strong while the solid demand for food on-the-shelf products continued. Comparable sales growth in emerging markets was 20%. Foreign currency translation impact on the Group’s net sales was EUR -35 million (EUR -8 million) compared to 2020 exchange rates.

Adjusted EBIT by business segment

Items affecting comparability
EUR millionQ2 2021Q2 2020ChangeQ2 2021Q2 2020
Foodservice Europe-Asia-Oceania19.96.2>100%-1.4-0.5
North America38.237.91%-0.6-0.0
Flexible Packaging16.619.1-13%-1.6-0.3
Fiber Packaging8.38.5-2%-0.5-0.8
Other activities-3.1-1.6-0.71.7
Group79.970.114%-4.90.1


Adjusted EBIT margin by business segment

Q2 2021Q1 2021Q4 2020Q3 2020Q2 2020
Foodservice Europe-Asia-Oceania8.4%8.5%7.3%9.4%3.7%
North America13.0%12.2%11.8%12.7%12.8%
Flexible Packaging6.1%8.1%7.2%8.5%7.3%
Fiber Packaging10.3%12.1%14.8%11.1%11.2%
Group9.1%9.6%9.0%10.1%8.8%


The Group’s adjusted EBIT increased to EUR 80 million (EUR 70 million) and reported EBIT was EUR 75 million (EUR 70 million). Adjusted EBIT improved following improved operational efficiency and pricing actions. Increased input costs partly offset the improvement in earnings. Earnings increased especially in the Foodservice Europe-Asia-Oceania segment. The Group’s adjusted EBIT margin improved and was 9.1% (8.8%). Foreign currency translation impact on the Group’s earnings was EUR -4 million (EUR 0 million).

Adjusted EBIT excludes EUR -4.9 million (EUR 0.1 million) of items affecting comparability (IAC).

Adjusted EBIT and IAC

EUR millionQ2 2021Q2 2020
Adjusted EBIT79.970.1
Acquisitions-1.3-0.3
Restructuring costs including write-downs of related assets-2.7-1.3
Settlement and legal fees of disputes-0.4-
Property damage incidents-0.6-
One-time gain from acquisition of Laminor-1.7
EBIT75.070.2


Net financial expenses were EUR 6 million (EUR 8 million). Tax expense was EUR 16 million (EUR 14 million). Profit for the second quarter was EUR 53 million (EUR 48 million). Adjusted earnings per share (EPS) was EUR 0.53 (EUR 0.44) and reported EPS EUR 0.50 (EUR 0.44). Adjusted EPS is calculated based on adjusted profit for the period, which excludes EUR -3.8 million (EUR 0.1 million) of IAC.

Adjusted profit and IAC

EUR millionQ2 2021Q2 2020
Adjusted profit for the period attributable to equity holders of the parent company55.546.0
IAC in EBIT-4.90.1
Taxes relating to IAC1.2-0.0
Profit for the period attributable to equity holders of the parent company51.746.1


Financial reviewH1 2021

Net sales by business segment

EUR millionH1 2021H1 2020Change
Foodservice Europe-Asia-Oceania443.2384.815%
North America551.2582.3-5%
Flexible Packaging537.8534.01%
Fiber Packaging158.9150.26%
Elimination of internal sales-12.1-9.7
Group1,679.01,641.72%

Comparable net sales growth by business segment

H1 2021H1 2020H1 2019
Foodservice Europe-Asia-Oceania17%-17%4%
North America4%1%9%
Flexible Packaging3%2%3%
Fiber Packaging3%10%5%
Group6%-3%5%


The Group’s net sales increased 2% to EUR 1,679 million (EUR 1,642 million) during the review period. Comparable net sales growth was 6%. Net sales increased especially in the Foodservice Europe-Asia-Oceania segment, driven by continued recovery in demand for foodservice products. Sales of retail tableware and fiber products continued to grow throughout the period. Comparable sales growth in emerging markets was 13%. Foreign currency translation impact on the Group’s net sales was EUR -81 million (EUR 2 million) compared to 2020 exchange rates.

Adjusted EBIT by business segment

Items affecting comparability
EUR millionH1 2021H1 2020ChangeH1 2021H1 2020
Foodservice Europe-Asia-Oceania37.523.659%-5.6-2.1
North America69.468.42%-0.6-3.4
Flexible Packaging38.340.1-4%-2.8-4.9
Fiber Packaging17.816.76%-0.5-1.5
Other activities-6.2-5.1-0.721.0
Group156.8143.79%-10.39.0


Adjusted EBIT margin by business segment

H1 2021H1 2020H1 2019
Foodservice Europe-Asia-Oceania8.5%6.1%9.0%
North America12.6%11.7%9.4%
Flexible Packaging7.1%7.5%8.6%
Fiber Packaging11.2%11.1%9.7%
Group Total9.3%8.8%8.8%


The Group’s adjusted EBIT increased to EUR 157 million (EUR 144 million) and reported EBIT was EUR 147 million (EUR 153 million). Adjusted EBIT improved following continued focus on operational efficiency and pricing actions and was partly offset by higher input costs. The increase in earnings was mainly supported by the Foodservice Europe-Asia-Oceania segment. The Group’s adjusted EBIT margin improved and was 9.3% (8.8%). Foreign currency translation impact on the Group’s earnings was EUR -8 million (EUR 1 million).

Adjusted EBIT excludes EUR -10.3 million (EUR 9.0 million) of items affecting comparability (IAC).

Adjusted EBIT and IAC

EUR millionH1 2021H1 2020
Adjusted EBIT156.8143.7
Acquisitions-1.6-0.4
Restructuring costs including write-downs of related assets-7.7-12.4
Settlement and legal fees of disputes-0.4-
Property damage incidents-0.6-
One-time gain from acquisition of Laminor-21.9
EBIT146.6152.7


Net financial expenses were EUR 14 million (EUR 18 million). Tax expense was EUR 31 million (EUR 30 million). The corresponding tax rate was 23% (23%). Profit for the period was EUR 101 million (EUR 105 million). Adjusted earnings per share (EPS) were EUR 1.02 (EUR 0.90) and reported EPS EUR 0.95 (EUR 0.97). Adjusted EPS is calculated based on adjusted profit for the period, which excludes EUR -7.9 million (EUR 7.0 million) of IAC.

Adjusted profit and IAC

EUR millionH1 2021H1 2020
Adjusted profit for the period attributable to equity holders of the parent company106.593.9
IAC in EBIT-10.39.0
Taxes relating to IAC2.4-2.0
Profit for the period attributable to equity holders of the parent company98.7100.9


Acquisitions and divestments

On April 21, 2021 Huhtamaki announced its agreement to acquire the assets of Jiangsu Hihio-Art Packaging Co. Ltd., a leading manufacturer of paper bags, wraps and folding carton packaging in China. With this acquisition, Huhtamaki continues to strengthen its position as the leading foodservice packaging provider in Asia and expands its product portfolio in China allowing it to better serve its existing and new customers in this exciting growth market. Jiangsu Hihio-Art Packaging employs approximately 200 people in its manufacturing unit in Xuzhou city, Jiangsu. In 2020 the annual net sales of the privately owned business were approximately EUR 20 million. The debt free purchase price was EUR 31 million. The acquisition was completed on June 11, 2021 and since then the business has been reported as part of the Foodservice Europe-Asia-Oceania reporting segment.

Outlook for 2021 (unchanged)

The Group’s trading conditions are expected to improve compared to 2020, however with continued volatility in the operating environment. Huhtamaki's diversified product portfolio provides resilience and the Group’s good financial position enables addressing profitable growth opportunities.

Teleconference

A combined audiocast and teleconference will be held on Thursday, July 22, 2021 at 9:30 Finnish time. At which, Huhtamaki´s President and CEO Charles Héaulmé and CFO Thomas Geust will present the results. The event will be followed by a question and answer session. The event will be held in English, and it can be followed real-time at: https://huhtamaki.videosync.fi/2021-q2/.

If you wish to ask questions, please dial one of the following numbers 5-10 minutes prior to the call start:

Finland: +358 981 710 310
Sweden: +46 85664 2651
UK: +44 333 300 08 04
US: +1 631 913 14 22

Confirmation code for the call is 53692046#

Financial reporting in 2021

In 2021, Huhtamaki will publish financial information as follows:

Interim Report, January 1 − September 30, 2021        October 21

This is a summary of Huhtamäki Oyj's Half-yearly Report January 1-June 30, 2021. The complete report is attached to this release and is also available at the company website at www.huhtamaki.com.

For further information, please contact:
Calle Loikkanen, Head of Investor Relations and Financial Communications, tel. +358 10 686 7125

HUHTAMÄKI OYJ
Global Communications

About Huhtamaki
Huhtamaki is a key global provider of sustainable packaging solutions for consumers around the world, enabling wellbeing and convenience. Our innovative products protect on-the-go and on-the-shelf food and beverages, ensuring hygiene and safety, and help prevent food waste. We embed sustainability in everything we do. We are committed to achieving carbon neutral production and designing all our products to be recyclable, compostable or reusable by 2030. 

We are a participant in the UN Global Compact and as of 2020, we received an MSCI ESG Rating of A, on a scale of AAA ─ CCC. To play our part in managing climate change, we have committed to set science-based targets through the Science Based Targets initiative. Huhtamaki has been awarded the Gold medal by EcoVadis for performance in sustainability.

With 100 years of history and a strong Nordic heritage we operate in 36 countries and 81 sites around the world. Our values Care Dare Deliver guide our decisions and help our team of 18,200 employees make a difference where it matters. Our 2020 net sales totaled EUR 3.3 billion. Huhtamaki Group is headquartered in Espoo, Finland and our parent company, HuhtamäkiOyj, is listed on Nasdaq Helsinki Ltd. Find out more about how we are protecting food, people and the planet on www.huhtamaki.com.

Attachment

To view this piece of content from www.globenewswire.com, please give your consent at the top of this page.
To view this piece of content from ml-eu.globenewswire.com, please give your consent at the top of this page.

About GlobeNewswire

GlobeNewswire
GlobeNewswire
One Liberty Plaza - 165 Broadway
NY 10006 New York

https://globenewswire.com

GlobeNewswire is one of the world's largest newswire distribution networks, specializing in the delivery of corporate press releases financial disclosures and multimedia content to the media, investment community, individual investors and the general public.

Subscribe to releases from GlobeNewswire

Subscribe to all the latest releases from GlobeNewswire by registering your e-mail address below. You can unsubscribe at any time.

Latest releases from GlobeNewswire

Leading Edge Materials Announces Filing of Preliminary Economic Assessment Report for Woxna Graphite Anode Project26.7.2021 14:30:00 CEST | Press release

Vancouver, July 26, 2021 – Leading Edge Materials Corp. (“Leading Edge Materials” or the “Company”) (TSXV: LEM) (Nasdaq First North: LEMSE) (OTCQB: LEMIF) is pleased to announce that the technical report for its Woxna Graphite project (the “Project”) titled “NI 43-101 Technical Report – Woxna Graphite” with effective date June 9, 2021, has been filed under the Company’s profile on SEDAR today (the “Report” or “PEA”). The Report supports the disclosure in the Company’s news release dated June 9, 2021. All figures in the Report are US dollars unless otherwise specified. The news release on June 9, 2021, presented these highlights of the Report: Main PEA Highlights The PEA indicates the potential viability of a Swedish operation producing battery grade graphite anode material utilizing an existing graphite mine and concentrator with the addition of a value-add processing facility offsite;The proposed process route in the PEA uses a thermal purification process which, combined with access

Cavotec wins key motorised cable reel order for advanced container cranes in Japan26.7.2021 09:00:00 CEST | Press release

Cavotec has won a key order for its innovative motorised cable reel systems for integration onto advanced rail-mounted gantry cranes at the Port of Tokyo – a project that highlights Cavotec’s position as a trusted supplier of mission-critical systems at ports and terminals. “Given the complexity of these high-end cranes and their demanding operational environment, this is an excellent reference for us as we continue to grow in Japan and the wider region,” says Robin Shang, Cavotec Regional Sales Director Ports & Maritime. Cavotec will supply motorised cable reel systems for eight automated rail-mounted gantry (ARMG) cranes at the Wan Hai Tokyo Oi5 terminal, a major global container handling hub. The cable reels will ensure the cranes meet demanding performance requirements due to surging container volumes. Working closely with Chin Pan engineering group, Cavotec is scheduled to complete the delivery of the systems in early 2023. Previously, Chin Pan has fitted two ARMGs cranes successf

Scandinavian Tobacco Group A/S: Transactions in connection with share buy-back programme26.7.2021 08:44:35 CEST | Press release

Company Announcement No. 38/2021 Copenhagen, 26 July 2021 Transactions in connection with share buy-back programme On 10 March 2021, Scandinavian Tobacco Group A/S (“STG”) announced that a share buy-back programme of an aggregated price of up to DKK 600 million was launched with the purpose to adjust the Company’s capital structure and meet obligations relating to the Group’s share-based incentive programme. The buy-back programme is executed in accordance with Regulation No. 596/2014 of the European Parliament and Council of 16 April 2014 (the “Market Abuse Regulation”) and Commission Delegated Regulation (EU) 2016/1052, also referred to as the Safe Harbour rules. The share buy-back programme will end no later than 28 February 2022. The following transactions have been executed from 19 July to 23 July 2021: Number of sharesAverage purchase price, DKKTransaction value, DKKAccumulated, last announcement1,781,412222,947,59319 July 202120,000125.242,504,78020 July 202115,510125.551,947,26

Saniona Receives U.S. FDA Orphan Drug Designation for Tesomet in Hypothalamic Obesity26.7.2021 08:00:00 CEST | Press release

PRESS RELEASE July 26, 2021 Tesomet is the first and only investigational treatment for hypothalamic obesity to receive orphan drug designation Saniona (OMX: SANION), a clinical stage biopharmaceutical company focused on rare diseases, today announced that the U.S. Food and Drug Administration (FDA) has granted orphan drug designation to Tesomet for the treatment of hypothalamic obesity (HO). Tesomet is the first and only investigational treatment for HO to receive orphan drug designation. Saniona is preparing to initiate two Phase 2b studiesof Tesomet in the second half of this year, one in HO and the other in Prader-Willi syndrome (PWS), for which Tesomet has already received orphan drug status. “There are currently no FDA-approved medicines for hypothalamic obesity. Despite the devastating weight gain and hunger this rare disease can cause, there has been relatively little drug development specifically for HO. Saniona is proud to be pioneering a regulatory path forward for people li

SERSTECH AB: Half-year report 1 January – 30 June 202126.7.2021 08:00:00 CEST | Press release

Serstech Group Second quarter 2021 Net sales: KSEK 2 765 (308)Profit for the period: KSEK -5 299 (-6 820)Earnings per share: SEK -0.06 (-0.10)Earnings per average number of shares: SEK -0.07 (-0.10) Serstech Group Period 1 January - 30 June 2021 Net sales: KSEK 14 224 (6 321)Profit for the period: KSEK -2 270 (-10 025)Earnings per share: SEK -0.03 (-0.14)Earnings per average number of shares: SEK-0.03 (-0.14) The second quarter brought a slight increase in orders received compared to the previous quarter, but we clearly see remaining effects of the pandemic in most parts of the world. We have not lost any tenders during the quarter, which is encouraging and again suggests that there is an unmet demand in the market. We do expect an increase in sales over the next six months, as the buyers become more active and the important demo sessions can be arranged safely again. Buyers in our industry will not buy an instrument they have not tested themselves and therefore they postpone procureme

Reminder of an Investor Conference Webinar26.7.2021 08:00:00 CEST | Press release

We would like to remind that KN invites shareholders, investors, analysts and other stakeholders to join its investor conference webinar scheduled on the July 29th of 2021 at 9.00 am (EET). The presentation will be held in English. The webinar will be hosted by KN Chief Executive Officer Darius Šilenskis and acting Chief Financial Officer Indrė Kisielienė who will introduce the performance and unaudited financial results of KN for the six months of 2021. How to join the webinar? To join the webinar, please register via following link: https://register.gotowebinar.com/register/6420133473151346701You will be provided with the webinar link and instructions how to join successfully. When joining the webinar for the first time, you will be asked to download the plug-in which will take only few seconds. In case plug-in can't be downloaded, a web browser which enables attending the webinar, opens automatically. The webinar will be recorded and available online for everyone at the company’s we

Van Lanschot Kempen’s partnership with Mercier Vanderlinden finalised26.7.2021 08:00:00 CEST | Press release

’s-Hertogenbosch/Amsterdam, the Netherlands, 26July2021 Van Lanschot Kempen and Mercier Vanderlinden today announced that they have completed the transaction that sees Van Lanschot Kempen acquire a 70% stake in Mercier Vanderlinden. The regulators have issued declarations of no objection, and Van Lanschot Kempen and Mercier Vanderlinden have thus joined forces in the Belgian wealth management market. Van Lanschot Kempen will increase step-by-step its 70% stake in Mercier Vanderlinden to 100%. Mercier Vanderlinden and Van Lanschot Kempen in Belgium will continue to operate independently and collaborate in a number of areas. The partners are a good fit in terms of client portfolios and networks, product offering and geographical coverage. Between them, they had €9.3 billion in client assets at 30 June 2021. In the past few years, both Van Lanschot Kempen in Belgium and Mercier Vanderlinden have achieved robust client asset growth, and they will continue their role as market challengers o