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Huhtamäki Oyj's Interim Report January 1 - September 30, 2013: Healthy net sales growth in constant currencies

HUHTAMÄKI OYJ STOCK EXCHANGE RELEASE 25.10.2013 AT 08:30

- Net sales grew in all business segments during the third quarter in constant currencies
- Net sales growth accelerated in emerging markets during the third quarter
- Earnings improvement continued in the Foodservice Europe-Asia-Oceania segment
- Earnings negatively affected by ongoing investments in the North America segment
- The Group's net sales and earnings negatively affected by currency movements

Key figures - excluding non-recurring items

EUR million Q1-Q3 2013 Q1-Q3 2012 Q3 2013 Q3 2012 FY 2012
           
Net sales 1,773.8 1,745.6 586.5 584.3 2,321.2
EBIT* 128.7 127.6 42.3 43.7 163.5
EBIT margin*, % 7.3 7.3 7.2 7.5 7.0
EPS*, EUR 0.89 0.93 0.31 0.31 1.19
ROI*, % 12.1 11.6     12.6
ROE*, % 15.0 14.5     15.8
Free cash flow 37.7 56.9 31.9 33.1 102.6
Net debt 420.9 459.4     405.9
Gearing 0.53 0.57     0.50

*Excluding EUR -5.2 million non-recurring items (NRI) in Q3 2013 and EUR -12.5 million in Q1-Q3 2013.

Key figures - reported

EUR million Q1-Q3 2013 Q1-Q3 2012 Q3 2013 Q3 2012 FY 2012
           
Net sales 1,773.8 1,745.6 586.5 584.3 2,321.2
EBIT 116.2 127.6 37.1 43.7 163.5
EBIT margin, % 6.6 7.3 6.3 7.5 7.0
EPS, EUR 0.77 0.93 0.26 0.31 1.19
ROI, % 11.2 11.6     12.6
ROE, % 13.4 14.5     15.8
Free cash flow 37.7 56.9 31.9 33.1 102.6
Net debt 420.9 459.4     405.9
Gearing 0.53 0.57     0.50

Overview
The Group's trading conditions remained relatively stable despite general economic uncertainty and customer cautiousness. The Group's reported net sales were EUR 1,774 million (EUR 1,746 million), and organic growth in constant currencies was 3%. During the third quarter the Group's organic net sales growth in constant currencies was 5% with all business segments reporting growth. Net sales growth was strongest in the North America and Flexible Packaging business segments, and accelerated in the emerging markets. The emerging market growth in constant currencies was 6% for the reporting period and 10% during the third quarter. Reported net sales in the third quarter were EUR 587 million (EUR 584 million). The negative foreign currency translation impact on net sales was EUR 46 million during the reporting period and EUR 31 million during the third quarter.

The Group's earnings before interest and taxes (EBIT), excluding non-recurring items (NRI) of EUR -13 million, were EUR 129 million (EUR 128 million) and in the third quarter EUR 42 million (EUR 44 million). The reported EBIT was EUR 116 million (EUR 128 million) and in the third quarter EUR 37 million (EUR 44 million). Strong earnings development continued in the Foodservice Europe-Asia-Oceania business segment. In the North America business segment earnings declined despite net sales growth. Adverse currency impact on the Group's EBIT was EUR 4 million during the reporting period and EUR 2 million during the third quarter.

The Group's free cash flow was EUR 38 million (EUR 57 million) and for the third quarter EUR 32 million (EUR 33 million). Return on investment (ROI), excluding non-recurring items, was 12.1% (11.6%) and return on equity (ROE), excluding non-recurring items, was 15.0% (14.5%).

The earlier announced efficiency improving measures within the Foodservice Europe-Asia-Oceania and Films business segments were continued. Investments in foodservice disposables capabilities in the North America business segment, announced during the first quarter, progressed according to plan.

Changes in Group Executive Team
Timo Salonen, CFO and a member of the Group Executive Team left the Company on July 19, 2013. Thomas Geust was appointed as Director, Finance and member of the Group Executive Team as of October 1, 2013.

Outlook for 2013
The Group's trading conditions are expected to remain relatively stable during 2013. The good financial position and ability to generate a positive cash flow will enable the Group to further address profitable growth opportunities. Capital expenditure is expected to be above EUR 100 million. A significant part of the investments is due to the increases in foodservice disposables capabilities within the North America segment.

Financial Reporting Schedule in 2014
The Results for 2013 will be published on February 6, 2014. Additionally, the interim reports will be published as follows:
- Interim Report January 1 - March 31, 2014           April 24, 2014
- Interim Report January 1 - June 30, 2014            July 18, 2014
- Interim Report January 1 - September 30, 2014       October 23, 2014
Huhtamäki Oyj's Annual General Meeting is planned to be held on April 24, 2014.

This is a summary of Huhtamaki's Interim Report January 1 - September 30, 2013. The complete report is attached to this release and is also available at the company website at www.huhtamaki.com.

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

HUHTAMÄKI OYJ
Group Communications

Huhtamaki Group is a leading manufacturer of consumer and specialty packaging with 2012 net sales totaling EUR 2.3 billion. Foodservice and consumer goods markets are served by approximately 14,300 people in 62 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 NASDAQ OMX Helsinki Ltd. Additional information is available at www.huhtamaki.com.