Mayr-Melnhof Karton (MMK) Q1 2025 earnings summary

Executive summary

• Significant earnings increase in Q1 2025 compared to Q1 2024, despite soft demand and margin pressure, driven by efficiency, innovation, and internal improvement programs.

• Diversified portfolio across Board & Paper, Food & Premium Packaging, and Pharma & Healthcare Packaging.

• Food and premium packaging segments increased profits, while pharma packaging lagged due to one-off effects and delayed product rollouts.

• Ongoing cost, technology, and innovation leadership initiatives to strengthen competitiveness.

Financial highlights

• Q1 2025 sales rose 1.7% to €1,042.6m; adjusted EBITDA up 26.2% to €119.3m with margin at 11.4%.

• Adjusted operating profit increased 53.7% to €61.0m; margin at 5.8%.

• Net profit nearly doubled to €21.1m; EPS at €1.04, up 99.8% year-over-year.

• Free cash flow declined to -€183.5m, mainly due to increased working capital.

• Gearing increased and cash decreased after Q1 2025, influenced by reduced factoring and a €25m share buyback.

Outlook and guidance

• Market conditions expected to remain difficult due to weak demand, high uncertainty, and potential US tariffs.

• Focus remains on cost, technology, and innovation leadership with ongoing efficiency and optimization programs.

• Sale/divestment of TANN/Tang Group anticipated to complete in H1 2025.