Company Announcements

• 3^rd quarter affected by annual maintenance downtime at Board & Paper
• Packaging divisions with continued solid performance
• Board & Paper despite significant volume increase affected by lower prices and higher costs
• Effects of targeted cartonboard price increases and consistent cost savings expected by 2025
• Consumer restraint continues in end markets

Group Key indicators - IFRS

Consolidated, in millions of EUR	Q1-3/2024	Q1-3/2023	+/-
Sales	3,068.8	3,196.5	-4.0 %
Adjusted EBITDA	295.7	358.7	-17.6 %
Adjusted operating profit	126.3	190.4	-33.7 %
Adjusted operating margin (in %)	4.1 %	6.0 %	-184 bp
Profit before tax	70.9	118.9	-40.4 %
Profit for the period	52.3	91.2	-42.7 %
Earnings per share (in EUR)	2.54	4.50
Cash flow from operating activities	167.6	327.3	-48.8 %

Peter Oswald, MM CEO, comments: “Despite persistent consumer restraint in the European core markets the MM Group succeeded in maintaining sales in the 3^rd quarter at the level of the two previous quarters. The MM Board & Paper division recorded a significant increase in volumes of around 18 % so far this year after the reduction of inventories in the supply chain and machine rebuilds in the previous year. As expected, 3^rd quarter results were below both the previous quarter and the previous year’s 3^rd quarter due to planned annual maintenance downtime at Board & Paper, which mainly affected the pulp mills in Poland and Finland. The costs of the annual shutdowns of MM Kwidzyn and MM Kotkamills were roughly EUR 25 million.

MM Food & Premium Packaging showed again a strong performance due to productivity increases and cost reductions, even though profitability was somewhat below last year.

MM Pharma & Healthcare Packaging could slightly improve profits, which were however held back by weak demand and extra costs from starting up new machines.

In the Board & Paper division, the earnings situation stayed weak despite the significant increase in volumes and cost reductions. This is primarily due to a substantial drop in average prices, along with rising costs in some areas like paper for recycling, wood and personnel. A comprehensive profit & cash protection programme has been in place for several quarters, with the majority of savings expected to materialise in 2025. Additionally, targeted price increases are being implemented, with their impact mainly anticipated next year.

For the 4^th quarter, we expect from today's perspective a stable development in both packaging divisions as well as Board & Paper returning to a slightly positive result.“

“Due to the ongoing weak consumption of daily consumer goods, subdued development in the end markets and continued underutilisation in the cartonboard industry are also anticipated in 2025. Against this background, we will continue to focus on strengthening our competitiveness by reducing costs and improving our quality, sustainability, and innovation. Particular attention will remain directed towards enhancing margins and ongoing cash generation. With the significantly optimised asset base over recent years and a solid financial position, MM is very well equipped to successfully meet the continuing challenges of the market with more sustainable and innovative packaging solutions.“, underlines Oswald.

INCOME STATEMENT
At EUR 3,068.8 million, the Group’s consolidated sales were below the previous year's figure (Q1-3 2023: EUR 3,196.5 million), mainly due to lower selling prices.

Adjusted operating profit decreased by EUR 64.1 million from EUR 190.4 million to EUR 126.3 million. This decline is primarily price-related. The Group’s adjusted operating margin was 4.1 % (Q1-3 2023: 6.0 %).

Financial income amounted to EUR 20.7 million (Q1-3 2023: EUR 5.4 million). The increase in financial expenses from EUR -40.0 million to EUR -63.3 million resulted in particular from higher interest rates for variable-interest financing. “Other financial result - net” changed from EUR -6.3 million to EUR -12.8 million, mainly owing to currency translations.

Profit before tax totalled EUR 70.9 million after EUR 118.9 million in the previous year. Income tax expense amounted to EUR 18.6 million (Q1-3 2023: EUR 27.7 million), resulting in an effective Group tax rate of 26.3 % (Q1-3 2023: 23.3 %).

Profit for the period decreased accordingly from EUR 91.2 million to EUR 52.3 million.

DEVELOPMENT IN THE 3^RD QUARTER
At EUR 1,024.9 million, consolidated sales in the 3^rd quarter exceeded both the figure for the 2^nd quarter of 2024 (EUR 1,018.9 million) and the previous year's level (Q3 2023: EUR 1,015.1 million).

The Group’s adjusted operating profit of EUR 35.7 million was below the previous quarter and the previous year’s figure (Q2 2024: EUR 51.0 million; Q3 2023: EUR 63.4 million). The adjusted operating margin amounted to 3.5 % (Q2 2024: 5.0 %; Q3 2023: 6.2 %). Adjusted EBITDA reached EUR 94.0 million (Q2 2024: EUR 107.2 million; Q3 2023: EUR 121.4 million). Profit for the period amounted to EUR 14.9 million (Q2 2024: EUR 26.5 million; Q3 2023: EUR 27.9 million).

MM Food & Premium Packaging achieved a good adjusted operating margin of 11.2 % (Q2 2024: 10.2 %; Q3 2023: 14.9 %), mainly driven by productivity increases and cost reductions.

At MM Pharma & Healthcare Packaging, the operating margin was 5.0 % (Q2 2024: 4.6 %; Q3 2023: 6.4 %), primarily as a result of continued subdued demand due to inventory reductions in the pharma industry's supply chain.

The adjusted operating margin of the MM Board & Paper division decreased to -4.1 % (Q2 2024: 0.4 %; Q3 2023: -3.0 %), despite positive development of volume and cost reductions, mainly due to the planned annual maintenance downtime. Capacity utilisation in the 3^rd quarter was notably higher than in the same quarter of the previous year, which was characterised by significant market- and rebuild-related machine downtime.

OUTLOOK
Due to the ongoing weakness of the overall economy and restrained consumer demand, we expect the subdued market dynamics to continue in the coming months. Our focus remains on securing and expanding volumes as well as implementing targeted price increases in Board & Paper to take effect until next year. Additionally, the profit & cash protection programme is being consistently executed to enhance earnings and generate cash. Emphasis here is on strict cost control and value-enhancing adjustments, with the majority of the savings expected by 2025. Capital expenditures are projected to be around EUR 250 million in 2024. After the maintenance-related impact on earnings in Board & Paper in the 3^rd quarter, we anticipate a return to a slightly positive result in the 4^th quarter.

With the significantly optimised asset base over recent years, consistent measures to strengthen competitiveness in terms of costs, sustainability and innovation, and a solid financial base, MM is well positioned to successfully meet the ongoing market weakness and structural challenges.

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Please find the detailed Press Release and the Report for the first three quarters of 2024 as well as the CEO Audio-Q&A-Webcast on our website: https://www.mm.group.
 

Forthcoming results:
March 18, 2025   Financial Results for 2024

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,
E-Mail: investor.relations@mm.group, Website: https://www.mm.group