Mayr-Melnhof Karton (MMK) H1 2025 (Q&A) earnings summary

Executive summary

• Significant profit increase in H1 2025, mainly due to the sale of TANN Group and improved performance in Board & Paper, supported by the 'Fit for Future' program targeting sustainable structural improvements and cost savings.

• The sale of TANN Group resulted in a one-off gain of approximately EUR 127 million, boosting financial flexibility.

• Management remains confident about future prospects, emphasizing operational excellence and customer service.

• Market conditions remain challenging with persistent overcapacity and weak demand, especially in Europe.

Financial highlights

• Consolidated sales for H1 2025 were EUR 2,030.0 million, nearly flat year-over-year.

• Adjusted EBITDA reached EUR 230.5 million (margin 11.4%), up 14.3% year-over-year.

• Adjusted operating profit rose 28.8% to EUR 116.7 million; net profit surged to EUR 164.3 million, driven by the TANN sale.

• Earnings per share increased to EUR 8.29 from EUR 1.82 year-over-year.

• Free cash flow turned negative at EUR -205.4 million, mainly due to working capital effects.

Outlook and guidance

• Market expected to remain soft with persistent overcapacity and no baseline improvement assumed; any positive market developments would be incremental.

• The 'Fit for Future' program targets over EUR 150 million in profit improvements by 2027, with gradual phasing and largest impact by 2027.

• Annual maintenance in Board & Paper to result in EUR 40 million expenses in H2 2025.

• CapEx for 2025 anticipated below EUR 250 million.