Mayr-Melnhof Karton (MMK) Q1 2025 earnings summary

Executive summary

• Significant year-over-year earnings increase in Q1 2025, mainly driven by the Board & Paper and Food & Premium Packaging divisions, despite continued soft demand and margin pressure; Pharma & Healthcare Packaging lagged due to one-off effects and delayed product rollouts.

• The company remains a market leader in fiber-based consumer packaging, focusing on efficiency, innovation, and sustainability, with ongoing cost, technology, and innovation leadership initiatives.

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

Financial highlights

• Q1 2025 sales rose 1.7% to €1,042.6 million compared to Q1 2024.

• Adjusted EBITDA increased 26.2% to €119.3 million; margin improved by 222 bp to 11.4%.

• Adjusted operating profit up 53.7% to €61.0 million; margin at 5.8%.

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

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

Outlook and guidance

• Market conditions are expected to remain challenging due to soft demand and high uncertainty, particularly regarding U.S. tariffs.

• Management is focused on cost, technology, and innovation leadership, with efficiency and optimization programs providing stability.

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