News

Huhtamäki Oyj's Interim Report January 1 - June 30, 2012: Solid net sales and earnings growth

HUHTAMÄKI OYJ STOCK EXCHANGE RELEASE 20.7.2012 AT 08:30

- Net sales growth continued
- Solid profitability improvement

- Strong net sales and earnings development in the Foodservice Europe-Asia-Oceania segment; recent acquisition in Asia contributed positively

- Outlook for full year 2012 has been adjusted and earnings per share (EPS) are expected to increase significantly compared to the EUR 0.87 (excluding non-recurring items) achieved in 2011

 

Key figures

EUR million H1 2012 H1 2011 Q2 2012 Q2 2011 2011
Net sales 1,168.2 1,006.0 618.1 528.0 2,043.6
EBIT* 83.2 67.4 49.3 40.0 127.6
EBIT margin*, % 7.1 6.7 8.0 7.6 6.2
EPS*, EUR 0.64 0.45 0.39 0.28 0.87
ROI, % 11.0 11.2 9.8
ROE, % 12.9 13.2 11.0
Free cash flow 23.8 -19.2 34.7 12.4 64.9
Net debt 476.9 330.5 393.4
Gearing 0.57 0.40 0.49

* Excluding EUR -7.0 million (net amount) non-recurring items in 2011.

Overview
The Group's trading conditions remained stable throughout the reporting period despite increased general economic uncertainty during the second quarter. Demand for consumer packaging was healthy during the reporting period but there were some signs of increased cautiousness towards the end of the second quarter, as customers avoided building inventories. Foreign currency movements had a favorable impact on the Group's net sales and earnings.

The Group achieved 16% net sales growth during the reporting period, half of which was attributable to the businesses acquired during the previous 12 months. Organic growth was 6% and the strongest contributors were the Flexible Packaging and Molded Fiber segments. The Group's net sales were EUR 1,168 million (EUR 1,006 million) and EUR 618 million (EUR 528 million) in the second quarter.

As a result of healthy net sales growth the Group's earnings before interest and taxes (EBIT) grew to EUR 83 million (EUR 67 million) and EUR 49 million (EUR 40 million) in the second quarter. Earnings growth was strongest in the Foodservice Europe-Asia-Oceania segment. The acquired businesses had a positive contribution to the Group's earnings.

Earnings per share (EPS) were EUR 0.64 (EUR 0.45). Outlook for full year 2012 has been adjusted and earnings per share (EPS) are expected to increase significantly compared to the EUR 0.87 (excluding non-recurring items) achieved in 2011. Earlier full year 2012 earnings per share (EPS) were expected to increase compared to the EUR 0.87 (excluding non-recurring items) achieved in 2011.

The Group's free cash flow improved and was EUR 24 million (EUR -19 million) and for the second quarter EUR 35 million (EUR 12 million). Return on investment (ROI) was 11.0% (11.2%) and return on equity (ROE) was 12.9% (13.2%). The quarter-on-quarter improvement of ROI and ROE continued.

The acquisition of Josco (Holdings) Limited, a major Asian foodservice packaging supplier, was completed. The acquired business is consolidated into the Foodservice Europe-Asia-Oceania segment as of April 1, 2012.

Outlook for 2012
The Group's trading conditions are expected to remain relatively stable during the rest of 2012. The good financial position and ability to generate a positive cash flow will enable the Group to further address profitable growth opportunities. Growth in net sales is expected to continue and earnings per share (EPS) are expected to increase significantly compared to the EUR 0.87 (excluding non-recurring items) achieved in 2011. Capital expenditure is expected to be below EUR 100 million.

Financial reporting schedule in 2012
Huhtamaki will publish the interim report for January 1 - September 30, 2012 on October 19.

This is a summary of Huhtamaki's Interim Report January 1 - June 30, 2012. The complete report is attached to this release and is also available at the company website at www.huhtamaki.com.

Unless otherwise stated, all statements and comments presented in this release relate to the reporting period and all comparisons are compared to the corresponding reporting period in 2011.

For further information, please contact:
Jukka Moisio, CEO, tel. +358 10 686 7801
Timo Salonen, CFO, tel. +358 10 686 7880

HUHTAMÄKI OYJ
Group Communications

Huhtamaki Group is a leading manufacturer of consumer and specialty packaging with 2011 net sales totaling EUR 2 billion. Foodservice and consumer goods markets are served by approximately 14,000 people in 61 manufacturing units and several sales offices in 31 countries. The parent company, Huhtamäki Oyj, has its head office in Espoo, Finland and its share is quoted on the NASDAQ OMX Helsinki Ltd. Additional information is available at www.huhtamaki.com.