Huhtamäki Oyj's Interim Report January 1 - March 31, 2012: Good start to the year
- Net sales growth in all segments
- Improved profitability
- Strong performance of the North America segment
- Acquisition of a major foodservice packaging supplier in Asia announced
|EUR million||Q1 2012||Q1 2011||2011|
|EBIT margin*, %||6.2||5.7||6.2|
|Free cash flow||-10.9||-31.6||64.9|
* Excluding EUR -7.0 million (net amount) non-recurring items in 2011.
Demand for consumer packaging was healthy during the first quarter of 2012 and the Group's trading conditions remained stable despite the general economic uncertainty. Raw material price levels started to increase at the beginning of the year and continued to increase throughout the quarter. Foreign currency movements did not have a major impact on Group's financial figures.
The Group achieved 7% organic growth in net sales during the reporting period, led by the North America segment. The businesses acquired during 2011 contributed a further 6% resulting to a total net sales growth of 15%, including a 2% favorable foreign currency impact. The Group's net sales were EUR 550 million (EUR 478 million).
As a result of volume growth the Group's earnings before interest and taxes (EBIT) grew to EUR 34 million (EUR 27 million). The growth was supported by favorable product mix development. Earnings development was particularly strong in the North America segment.
The Group's free cash flow for the reporting period was EUR -11 million (EUR -32 million). Return on investment (ROI) was 10.5% (12.0%) and return on equity (ROE) was 11.8% (13.9%). Both ROI and ROE improved from the year-end 2011 levels.
In March the Group signed its fourth acquisition in nine months. With the growth enhancing acquisition of Josco (Holdings) Limited, a major Asian foodservice packaging supplier, the Group continued to implement its strategy of quality growth. The transaction was completed on April 2, 2012.
Outlook for 2012
The Group's trading conditions are expected to remain relatively stable during 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 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 - June 30, 2012 on July 20 and January 1 - September 30, 2012 on October 19.
This is a summary of Huhtamaki's Interim Report January 1 - March 31, 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
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.