Mayr-Melnhof Karton (MMK) Q3 2024 earnings summary

Executive summary

• Group sales for Q1-3 2024 declined 4% year-over-year to €3,068.8 million, mainly due to lower selling prices despite higher volumes in Board & Paper.

• Adjusted EBITDA fell 17.6% to €295.7 million, with margin down to 9.6% from 11.2% year-over-year.

• Profit for the period dropped 42.7% to €52.3 million, and earnings per share decreased to €2.54 from €4.50.

• Annual maintenance downtime in Board & Paper impacted Q3 results by €25 million.

• Market leader in fiber-based consumer packaging with a diversified portfolio and global presence, focusing on efficiency, innovation, and sustainability.

Financial highlights

• Adjusted operating profit declined 33.7% to €126.3 million; margin fell to 4.1% from 6.0%.

• Free cash flow turned negative at €-18.8 million, with cash flow from operating activities down 48.8% to €167.6 million.

• Capital expenditures for Q1-3 2024 were €191.3 million, with full-year expectations at €250 million, substantially below previous guidance.

• Net debt increased to €1,380.2 million; net debt/adjusted EBITDA at 3.6x; equity ratio improved to 41.6%.

• Financial expenses increased due to higher variable-interest financing rates.

Outlook and guidance

• Subdued market dynamics and weak consumer demand expected to persist into 2025.

• Board & Paper division anticipated to return to slightly positive results in Q4 2024 after maintenance impact.

• Majority of cost savings from profit and cash protection program expected to materialize in 2025, with some impact already seen in H2 2024.

• Targeted price increases are being implemented, with major impact anticipated next year.

• Focus remains on cost control, margin improvement, and cash generation.