MM Packaging Q3 Report 2023
- 3Q operating profit above previous quarter but well below previous year
- Solid performance at MM Packaging
- Market- and capex-related volume decline continued to weigh on results of MM Board & Paper
- General conditions remain tight as a result of inflation-related consumption restraint and the macroeconomic slowdown
- No immediate recovery in sight
- Initiated profit and cash protection program begins to take effect
As expected, business development in the 3rd quarter continued at a similar level as in the previous quarter. Due to further market and capex-related downtime in the division MM Board & Paper as well as heterogeneous demand in the sales markets of MM Packaging and increasing price pressure, consolidated sales amounted to EUR 1,015.1 million after EUR 1,059.3 million in the 2nd quarter of 2023 and EUR 1,231.9 million in the 3rd quarter of the previous year.
The Group’s operating profit of EUR 55.8 million was above the previous quarter (2Q 2023: EUR 42.4 million) due to a strong profit contribution from MM Packaging, but well below the previous year’s level (3Q 2022: EUR 167.2 million).
The operating margin came in at 5.5 % (2Q 2023: 4.0 %; 3Q 2022: 13.6 %). Profit for the period amounted to EUR 27.9 million (2Q 2023: EUR 28.4 million; 3Q 2022: EUR 109.4 million). The operating margin of the division MM Board & Paper was -3.0 % (2Q 2023: -2.0 %; 3Q 2022: 15.6 %) mainly due to market-related reduced capacity utilization as well as capex downtime at the Slovenian Kolicevo board mill.
MM Packaging’s operating margin reached 11.4 % particularly as a result of declining cartonboard prices (2Q 2023:8.6 %; 3Q 2022: 9.2 %).
