Mayr-Melnhof Karton (MMK) H1 2025 earnings summary

Executive summary

• Significant profit increase in H1 2025, mainly driven by the Board & Paper division and the Fit for Future profit improvement program, despite weak consumer demand and overcapacity in Europe.

• The sale of TANN Group was completed in Q2, generating a one-off income of around EUR 127 million and shifting strategic focus to core consumer packaging.

• Ongoing focus on efficiency, innovation, and sustainability, with strong core shareholder support.

• The "Fit for Future" program targets over EUR 150 million in structural profit improvements by 2027 (excluding TANN baseline).

Financial highlights

• Consolidated sales reached EUR 2,030.0 million, nearly flat year-over-year.

• Adjusted operating profit rose 28.8% to EUR 116.7 million; adjusted operating margin improved to 5.8%.

• Adjusted EBITDA grew 14.3% to EUR 230.5 million; margin up to 11.4%.

• Net profit increased to EUR 164.3 million, up 339.9% year-over-year; EPS at EUR 8.29.

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

Outlook and guidance

• Market conditions expected to remain challenging with soft demand and persistent overcapacity, especially in virgin cartonboard.

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

• Earnings in H2 expected to be lower than H1 due to maintenance and absence of TANN's contribution.

• Ongoing focus on working capital reduction and cash flow improvement.

• Capital expenditure for 2025 anticipated below EUR 250 million.