* Solid sales and volume
* Results as expected still below previous year
* Ordering situation is strengthening
The Mayr-Melnhof Group achieved overall high capacity utilization in the first six months of 2017 and was able to maintain the previous year's level in sales and volume. As expected, results are still below the previous year. In the cartonboard division strongly increased recovered paper prices were just gradually compensated through higher cartonboard prices. In the packaging division last year's second quarter earnings were supported by a favorable product mix.
The development of new organic growth opportunities in and outside Europe was consequently continued through ongoing investment activity.
Group Key indicators (IFRS, unaudited)
Consolidated, in millions of EUR 1st HY/2017 1st HY/2016 +/-
Sales 1,150.3 1,142.2 +0.7 %
Operating Profit 102.1 110.8 -7.9 %
Operating margin (in %) 8.9 % 9.7 %
Profit before tax 97.0 108.9 -10.9 %
Profit for the period 71.9 80.4 -10.6 %
Earnings per share (in EUR) 3.58 4.01
The Group's consolidated sales rose slightly from EUR 1,142.2 million to EUR 1,150.3 million. Both divisions contributed to this rise.
At EUR 102.1 million, operating profit was EUR 8.7 million or 7.9 % below the value for the first half of the previous year (EUR 110.8 million). Thus, the Group's operating margin was at 8.9 %, following 9.7 % in the first six months of 2016.
Financial income of EUR 1.3 million (1st half of 2016: EUR 1.6 million) was offset by financial expenses of EUR -2.9 million (1st half of 2016: EUR -3.2 million). Owing to the deconsolidation of the Tunisian packaging companies, a one-off expenditure of EUR 2.3 million was incurred due to the accumulated foreign currency translation, which is reported under "Other financial result - net".
As a result, profit before tax reached EUR 97.0 million (1st half of 2016: EUR 108.9 million). Income tax expense totaled EUR 25.1 million, following EUR 28.5 million in the first half of the previous year, resulting in an effective Group tax rate of 25.9 % (1st half of 2016: 26.2 %).
At EUR 71.9 million, the profit for the period was 10.6 % below the comparative figure for the previous year (1st half of 2016: EUR 80.4 million), representing 6.3 % of sales (1st half of 2016: 7.0 %).
DEVELOPMENT IN THE SECOND QUARTER
Sales in the second quarter were at the previous year's level, operating profit, however, was still below that although an improvement over the first quarter of the current year could be achieved.
At 99 % (1Q 2017: 98 %; 2Q 2016: 98 %) the cartonboard division reported almost full capacity utilization and achieved a good operating margin of 7.3 % (1Q 2017: 6.1 %; 2Q 2016: 7.3 %) as a result of successively improving prices as well as optimization measures despite ongoing high recovered paper prices.
Despite widely heterogeneous capacity utilization, the packaging division reached an operating margin of 9.8 % (1Q 2017: 10.1 %) after 11.1 % in the second quarter of the previous year, which was marked by a favourable product mix.
The Group's operating profit amounted to EUR 51.5 million following EUR 50.6 million in the first quarter of 2017 and EUR 55.6 million in the second quarter of the previous year. Accordingly, the operating margin was 9.1 % (1Q 2017: 8.7 %; 2Q 2016: 9.8 %).
The profit for the period reached EUR 35.0 million (1Q 2017: EUR 36.9 million; 2Q 2016: EUR 41.0 million).
Ordering behavior on our European main markets is strengthening. As a result, on the one hand the generally high capacity utilization of the plants should continue, and on the other hand the main focus of both divisions will be on passing on increasing input prices as well as on improving cost efficiency. The target for 2017 remains to match the 2016 results as best possible. Our long-term growth course will be consistently pursued.
Please find the detailed Press Release and the Half-Year Financial Report 2017 on our homepage: www.mayr-melnhof.com.
November 15, 2017 Results for the first three quarters of 2017
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: email@example.com, Website: http://www.mayr-melnhof.com
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