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Rigid Consumer Goods Plastics
Strategic review of the business progressed well. Sales declined but
profitability improved.
Year 2009
As most Huhtamaki’s business segments, the Rigid Consumer Goods Plastics business
segment was affected by the economic uncertainty and sales varied significantly
from one month to another. Additionally, divested units and discontinued business
brought down sales. Customers were cautious in their ordering conduct throughout Europe. The signs of recession faded more swiftly in Oceania, where sales returned to a normal level during the second half of the year. During the first half of the year the whole segment benefited from low raw material prices, which boosted profitability. Raw material prices started to climb rapidly during the second half of the year.
- Net sales MEUR 282.2 (389.9)
EBIT*, MEUR 19.7 (0.8)
Cash flow, MEUR 24.4 (35.8)
RONA-% 9.2 (-52.8) - Personnel at the end of 2009 1,355 (2,051)LTIF 9.6 (14.6)
- Number of manufacturing units 8 (17)
- Share of net sales, % 14 (17)
- Eric Le Lay, Executive Vice President, Foodservice Europe Asia-Oceania
Dedicated teamwork to control capital expenditure and costs generated results. Profitability improved markedly compared to previous years and was positive throughout the segment. Elimination of the unprofitable UK business further improved the segment’s results in 2009.
As a response to the economic downturn, efforts were increased to supply more value-added items and to further strengthen new product development services for the food industry. Huhtamaki’s position as one of the leading suppliers of rigid plastic packaging for dairy, edible fats, fresh food and ice cream products in Europe and Australia was retained.
Strategic review
The strategic review of the Rigid Consumer Goods Plastics segment continued successfully during the year 2009. Intensive work was undertaken to separate the segment from the Foodservice business, and strategic options of the different regions were reviewed.
By the end of the year, half of the Rigid Consumer Goods Plastics segment, in terms of net assets, had been divested. The combined annualized net sales of the divested units were some EUR 120 million. The review of the remaining operations – eight manufacturing units in five European countries – continues.
The divested rigid plastic consumer goods units in 2009 included:
- four units in Australia
- three units in Brazil and one in Argentina
- one unit in South Africa.
