Huhtamäki (HUH1V) investor relations material

Strategic direction and growth

• Focus on becoming the first choice in sustainable packaging, leveraging leadership in innovation and global presence.

• 2030 strategy centers on scaling core businesses, sustainable innovation, and operational excellence.

• Value creation driven by organic and inorganic growth, disciplined capital allocation, and empowered business segments.

• Investments prioritized for best-yielding projects, with capex moderated but above depreciation to support growth.

• Operating model evolved for greater agility, accountability, and speed of execution.

Segment performance and product innovation

• Four segments: Foodservice Packaging, North America, Flexible Packaging, and Fiber Packaging, each with clear financial ambitions.

• Foodservice Packaging and North America segments experienced volume growth but faced currency and market headwinds.

• Flexible Packaging saw margin improvement despite lower sales, supported by higher prices and profitability actions.

• Fiber Packaging delivered strong profitable growth, driven by increased demand and improved pricing.

• Product innovation includes recyclable, compostable, and reusable solutions, with a focus on mono-material and fiber-based packaging.

Financial performance and capital allocation

• Q1 2026 net sales €947m, down 5% year-on-year due to negative currency impact; comparable net sales grew 1%.

• Adjusted EBIT margin improved to 10.0% (from 9.8%), with free cash flow rising to €10m from -€22.5m.

• Net debt reduced to €1,179m, with net debt/adj. EBITDA at 1.9, maintaining a strong liquidity position.

• Dividend per share increased for 17 consecutive years, with a payout ratio of 46% in 2025.

• Capital allocation remains disciplined, balancing growth investments, shareholder returns, and leverage targets.