MM Packaging Q1 Report 20024
At EUR 1,025.0 million, the Group’s consolidated sales were below the previous year’s figure (1Q 2023: EUR 1,122.1 million), primarily due to price-related declines in both divisions.
Adjusted operating profit decreased by EUR 39.1 million from EUR 78.7 million to EUR 39.6 million. This decrease is primarily due to the recent increase in production costs in the Board & Paper division, which are to be offset by higher sales prices from the 2nd quarter onwards. The Group’s adjusted operating margin was therefore 3.9 % (1Q 2023: 7.0%).
Financial income amounted to EUR 6.6 million (1Q 2023: EUR 1.3 million). The increase in financial expenses from EUR -10.8 million to EUR -21.4 million resulted in particular from higher interest rates for variable-interest loans. “Other financial result – net” changed from EUR -3.1 million to EUR -6.8 million, mainly owing to currency translations.
Profit before tax thus totalled EUR 18.0 million after EUR 49.0 million in the previous year. Income tax expense amounted to EUR 7.1 million (1Q 2023: EUR 14.1 million), resulting in an effective Group tax rate of 39.6 % (1Q 2023: 28.7%).
Cash Flow
Cash flow from operating activities decreased from EUR 67.2 million to EUR 52.5 million in the 1st quarter. This decline primarily resulted from a lower cash effective profit and a higher increase in working capital at the beginning of the current year.
Cash flow from investing activities changed from EUR -94.7 million to EUR -85.1 million, mainly due to lower payments for the acquisition of property, plant and equipment and intangible assets in the current year. Capital expenditures focused in particular on technological modernisations in both divisions.
Free cash flow changed from EUR -28.6 million to EUR -38.5 million.
Cash flow from financing activities changed from EUR -13.2 million to EUR -89.2 million. This development primarily results from higher redemptions and interest payments in the current year, which were contrasted by the use of short-term credit lines in the previous year.
