MM Packaging Q1 Report 2023
- Results below previous year’s period as expected
- Sales growth due to acquisitions of the previous year in the pharma packaging sector
- Capex- and market-related significantly lower volume at MM Board & Paper
- High customer inventory levels and weaker purchasing power weigh on demand
The 1st quarter 2023 was overall characterized by continuous capacity utilization, although demand in some markets gradually weakened against the backdrop of declining consumer purchasing power. The significant growth compared to the previous year’s period resulted primarily from the inclusion of the prior-year acquisitions in the pharma packaging sector, Essentra Packaging and Eson Pac, which contrasted with the sale of the Russian sites.
Necessary structural adjustments were continued as announced and affected a packaging site in Germany. This resulted in one-off expenses of EUR 15.5 million. Even though we are still in the early stages of integrating Ex-Essentra Packaging, it can be confirmed that we are on the right track with the turnaround and the leveraging of synergies. In contrast, Eson Pac, acquired in April last year, has already far exceeded our expectations. In addition, the recent expansion of competitive sites has further contributed to organic growth.
At EUR 656.7 million, sales were mainly acquisition-related EUR 201.8 million above the previous year’s figure of EUR 454.9 million. The operating profit of EUR 33.9 million (1Q 2022: EUR 41.0 million) was influenced in particular by the aforementioned one-off expenses but also the discontinuation of the profitable business in Russia. The operating margin thus amounted to 5.2 % (1Q 2022: 9.0 %).
At 1,094 million m2, produced volume was 14.1 % above the previous year’s level (1Q 2022: 959 million m2). After eliminating the acquisition effects, MM Packaging recorded organic growth of approximately 2 %.
