Huhtamäki reported 10% increase of sales and 11% of Adjusted EBITDA in 1Q2017 y-o-y. According to the announcement, the company’s revenues accounted for EUR 739.4 million, generating Adjusted EBITDA of EUR 94 million (12.7% margin vs 12.6% in the same quarter of 2016) in the period.
Jukka Moisio, Huhtamäki’s CEO:
“Our year started well and we achieved 3% comparable net sales growth with all business segments growing organically. Growth was driven by Foodservice Europe-Asia-Oceania segment, where organic growth was boosted by acquisitions completed in 2016. In addition, the Flexible Packaging segment returned to positive growth. The Group’s comparable growth in emerging markets was reduced to 2% as consumer demand in India was impacted by the demonetization action executed by the government in Q4 2016. Without the Indian impact emerging market growth would have been approx. 6-7%.
Our EBITDA, EBIT and EPS improved with margins at the previous year’s levels. Foodservice Europe-Asia-Oceania segment accounted for the strongest profitability improvement with good volume growth, high-yielding acquisitions, and successful restructuring actions in China and New Zealand. Free cash flow was negative due to high capital expenditure and seasonal inventory buildup. Our ROI and ROE remained at good levels.
2017 is a year of major investments for Huhtamaki. Our ongoing investments in new manufacturing units in the U.S., Egypt, and Ukraine are progressing. During the quarter we already started manufacturing in two new flexible packaging units in Northeast India and are currently ramping up the plant extension in Guangzhou, China. These significant growth investments help us address attractive opportunities in food and drink packaging and serve our customers better.”
In 4Q2016 Huhtamaki increased Adjusted EBITDA by 16%.
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.