DGAP-News: Mayr-Melnhof Karton AG / Key word(s): Half Year Results
2016-08-18 / 07:55
The issuer is solely responsible for the content of this announcement.

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- Good first half-year
- Again increase in sales and profit 
- Pressure on volumes and margins steps up


The Mayr-Melnhof Group was again able to successfully hold up its grounds in the first half-year of 2016 facing increasingly challenging overall conditions. Sales as well as profit exceed the previous year's figures. However, visibility of demand on the cartonboard and folding carton markets proved to be increasingly short-term over the first six months. Thus, the overall situation starts to get more challenging.

The division MM Karton succeeded in maintaining the good level of the previous year's period with a high degree of price discipline and stable volume development. The division MM Packaging recorded solid profit development and the expected growth following the acquisition of a French folding carton group in the fourth quarter of last year.
Owing to a lack of sustained economic impulses for demand with sufficient capacities on the markets, we expect that the pressure on margins will rise. The good results in the first half-year will therefore be a challenge for the second half of the year. However, to secure profitability the best way possible with a consistent price policy, highest efficiency and an optimized product mix remains our target.

Group Key indicators (IFRS)

Consolidated, in millions of EUR 1st HY/2016 1st HY/2015 +/-
Sales 1,142.2 1,069.6 +6.8 % Operating Profit 110.8 96.5 +14.8 % Operating margin (in %) 9.7 % 9.0 % Profit before tax 108.9 90.8 +19.9 % Profit for the period 80.4 67.2 +19.6 % Earnings per share (in EUR) 4.01 3.33

The Group's consolidated sales went up by 6.8 % or EUR 72.6 million to EUR 1,142.2 million (1st half of 2015: EUR 1,069.6 million). This increase results primarily from the acquisition-related higher business volume at MM Packaging.

Operating profit grew by 14.8 % or EUR 14.3 million to EUR 110.8 million (1st half of 2015: EUR 96.5 million). A significant rise at MM Packaging was offset by a slight decrease at MM Karton. The Group's operating margin climbed to 9.7 % (1st half of 2015: 9.0 %).

Financial income was at EUR 1.6 million (1st half of 2015: EUR 0.8 million), financial expenses amounted to EUR -3.2 million (1st half of 2015: EUR -3.2 million).

Profit before tax rose by 19.9 % to EUR 108.9 million (1st half of 2015: EUR 90.8 million). Income tax expense totaled EUR 28.5 million following EUR 23.6 million in the first half of the previous year, resulting in an effective Group tax rate of 26.2 % (1st half of 2015: 26.0 %).
Profit for the period thus increased by 19.6 % to EUR 80.4 million (1st half of 2015: EUR 67.2 million).


DEVELOPMENT IN THE SECOND QUARTER

As expected, sales in the second quarter were slightly below the first quarter of 2016, however, acquisition-related significantly above the comparative period of the previous year.

The cartonboard division recorded continuing good capacity utilization at 98 % (1Q 2016: 97 %; 2Q 2015: 99 %) and was able to maintain the operating margin with 7.3 % at a good level (1Q 2016: 7.7 %; 2Q 2015: 8.5 %).
The packaging division achieved an operating margin of 11.1 % following 10.3 % in the first quarter of 2016 (2Q 2015: 7.9 %), mainly attributable to the product mix.

The Group's operating profit reached EUR 55.6 million after EUR 55.2 million in the first quarter of 2016 and EUR 45.7 million in the second quarter of the previous year. The operating margin was therefore 9.8 % (1Q 2016: 9.6 %; 2Q 2015: 8.5 %).

The profit for the period amounted to EUR 41.0 million (1Q 2016: EUR 39.4 million; 2Q 2015: EUR 31.7 million).
 

OUTLOOK

Against the background of weak economic performance and increasing uncertainty, the overall general conditions for our business show a lack of momentum. The situation on the European cartonboard and folding carton markets starts to get more challenging. Due to sufficient capacities, pressure on prices and therefore margins is increasing. As in the first half of the year, our highest priority remains consequent price policy and maintaining our market shares. Furthermore, we are strengthening the wide range of cost-cutting measures to secure our competitive strength and profitability of our business over the long term. The strong development in the first half-year will nevertheless be a challenge for the second half of the year.

Our growth strategy will be continued with a long-term view as hitherto, concentrating on our core business, quality as well as manageable risk.
The Half-Year Financial Report 2016, the press release as well as the CEO video presentation and the details for today's CEO Conference Call are available on our website: www.mayr-melnhof.com


Forthcoming results:
November 15, 2016 Results for the first three quarters of 2016
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
Fax: +43 1 501 36-191195
E-Mail: investor.relations@mm-karton.com
Website: http://www.mayr-melnhof.com

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2016-08-18 Dissemination of a Corporate News, transmitted by DGAP - a service of EQS Group AG.
The issuer is solely responsible for the content of this announcement.
The DGAP Distribution Services include Regulatory Announcements, Financial/Corporate News and Press Releases.
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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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