DGAP-News: Mayr-Melnhof Karton AG / Key word(s): Final Results
2015-03-24 / 08:01

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* MM Group continues long-time success course
* Group results reach new peak-level
* Dividend increase to EUR 2.60 per share


The Mayr-Melnhof Group was able to successfully stand up its grounds in the financial year 2014 within a flat overall economic environment, concluding the year with growth in both sales and profit. Both divisions, MM Karton and MM Packaging, had a substantial contribution to this. Despite a lack of impulses from private consumption, the Group succeeded in maintaining capacity utilization at a high level and safeguarding average prices to a large extent in a competitive market. In addition, productivity increases in both divisions together with lower specific costs at MM Karton and significant volume growth at MM Packaging led to an improvement in profit compared to the previous year. The major investment in FOODBOARD(TM) at the Austrian Frohnleiten cartonboard mill created the industrial basis for a new type of cartonboard that provides optimum protection for food packaged in cartonboard. Expansions at MM Packaging related in particular to locations in Poland, Romania, Turkey, and Vietnam. As a result of the positive profit development, a recommendation will be made to the 21st Annual General Meeting on April 29, 2015, to distribute a dividend of EUR 2.60 per share after EUR 2.40 plus an anniversary bonus of EUR 2.40 per share in the previous year.


GROUP KEY INDICATORS - IFRS 
in millions of EUR 2014 2013 +/- Sales 2,087.4 1,999.4 +4.4 % Operating Profit 180.2 165.4 +8.9 % Operating margin (in %) 8.6 % 8.3 % Profit before tax 171.0 156.4 +9.3 % Income tax expense (39.4) (33.5) Profit for the year 131.6 122.9 +7.1 % Earnings per share (in EUR) 6.54 6.11


The Group's consolidated sales exceeded the two-billion euro mark for the first time and, at EUR 2,087.4 million, were 4.4 % or EUR 88.0 million above the previous year's value (2013: EUR 1,999.4 million). This rise mainly results from an increase in volume in the packaging division and sales from the Norwegian wood pulp mill acquired in the previous year in the car-tonboard division.

At EUR 180.2 million, operating profit was 8.9 % or EUR 14.8 million above the previous year's value (2013: EUR 165.4 million). A clear profit increase in the cartonboard division was accompanied by solid profit growth in the packaging division. Thus, the operating margin of the Group reached 8.6 % (2013: 8.3 %). The return on capital employed amounted to 15.5 % (2013: 15.4 %).

Financial income of EUR 1.5 million (2013: EUR 1.6 million) was offset by financial expenses of EUR -5.2 million (2013: EUR -4.0 million).
Profit before tax thus increased by 9.3 % to EUR 171.0 million after EUR 156.4 million in the previous year. Income taxes totaled EUR 39.4 million (2013: EUR 33.5 million), resulting in an effective Group tax rate of 23.0 % (2013: 21.4 %).

Profit for the year thus rose by 7.1 % to EUR 131.6 million (2013: EUR 122.9 million), with the net profit margin increasing slightly from 6.1 % to 6.3 %.


OUTLOOK 2015

The year 2015 began with continuing solid incoming orders in both divisions, thus sufficient capacity utilization can be expected in the foreseeable future. Nevertheless, customer planning remains restrained without any noticeable impulses for the demand development. However, we still aim to grow further in 2015 through new business as well as through market share gains.

The focus of our investment programs and ongoing operational measures with regard to effi-ciency and productivity remains on the reduction of our direct costs over the long term. This is intended to further strengthen the Group's competitiveness in a hard-fought environment and to maintain the profit dynamics at a high level.

As current developments on the procurement markets, in particular for recovered paper and energy, indicate no major changes from today's perspective, we will continue to concentrate on optimum price stability.
As a result of the still lasting short-term nature of the business, it is currently not possible to provide any estimate for the result of the current year. The record results achieved in 2014 represent in any case a challenge for 2015.

Besides maintaining organic business growth, a major focus remains on the long-term expan-sion course through acquisitions within and outside of Europe, with vigor, but also with due caution.


The press release is available on the internet under www.mayr-melnhof.com.
The Annual Report 2014 will be available on April 8, 2015.

Forthcoming Results:
May 19, 2015 Results for the first Quarter of 2015
 
For further information, please contact:
Stephan Sweerts-Sporck
Investor Relations

Mayr-Melnhof Karton AG
Brahmsplatz 6
A-1041 Vienna
Tel.: +43 1 501 36-91180
Fax: +43 1 501 36-191195
E-Mail: investor.relations@mm-karton.com
Website: http://www.mayr-melnhof.com



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2015-03-24 Dissemination of a Corporate News, transmitted by DGAP - a service of EQS Group AG.
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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-karton.com Internet: www.mayr-melnhof.com ISIN: AT0000938204 WKN: 93820 Indices: ATX Listed: Regulated Unofficial Market in Berlin, Munich, Stuttgart; Open Market in Frankfurt ; Wien (Amtlicher Handel / Official Market)  
 
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