MM Packaging Q1 Report 2023

Highlights

• 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. 

• The Group’s total equity rose mainly profit-related from EUR 2,012.4 million to EUR 2,035.7 million. The equity ratio amounted to 40.6 % (December 31, 2023: 39.6 %).

• Financial liabilities, primarily of a long-term character, decreased to EUR 1,969.8 million after EUR 2,019.5 million at the end of the previous year. With total cash of EUR 635.2 million (December 31, 2023: EUR 757.5 million), net debt of the Group went up to EUR 1,334.6 million (December 31, 2023: EUR 1,261.9 million). 

• 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.