Huhtamäki reported stable Adjusted EBITDA amid 4% net sales growth 2Q2017 y-o-y. According to the announcement, the company’s revenues accounted for EUR 771.9 million, generating Adjusted EBITDA of EUR 106.6 million (13.8% margin vs 14.3% in the same quarter of 2016).
In January-June 2017 period the company’s new sales accounted for EUR 1,511.3 million generating Adjusted EBITDA of EUR 200.4 million (13.3% margin).
Jukka Moisio, Huhtamäki’s CEO:
“Our second quarter comparable net sales growth was 1%. In Europe our business grew well, driven by healthy demand. Quarterly growth in North America was modest due to capacity constraints, which we are addressing with on-going investments. The Flexible Packaging segment’s net sales development was negative due to significant net sales decline in India, where the GST reform weakened demand temporarily. The Group’s comparable growth in emerging markets was negative 1%, and without the Indian impact it would have been approx. 5%.
Our profitability was good and we had the second best quarter in the company history although we did not break the record achieved in Q2 2016. Profitability improved in the Foodservice Europe-Asia-Oceania segment and remained at the previous year level in the Fiber Packaging segment. The North America segment’s earnings were good, even if not reaching the high of the second quarter in 2016. The Flexible Packaging segment’s earnings were impacted by net sales decline in India.
In 2017, we pursue our growth strategy by building new capabilities to serve our customers better in 2018 and beyond. Our project in building a new manufacturing unit in Goodyear, Arizona, the U.S., is proceeding as planned. We will start to ramp up manufacturing of a full range of paper packaging products to the southwest and west coast markets towards the end of 2017. In addition, we expand in China by investing in our foodservice packaging operations in South China, and by acquiring two foodservice packaging units in Shanghai and Tianjin from International Paper. Despite temporary headwinds, particularly in India, we see good growth opportunities in food and drink packaging.”
In 1Q2017 Huhtamäki increased Adjusted EBITDA by 11%.
The company is focused on manufacturing of foodservice packaging, flexible packaging and molded fiber packaging. It has 73 manufacturing units and 24 sales offices in 34 countries employing around 17,000 people worldwide. In 2016 our net sales totaled EUR 2.9 billion.