HUHTAMÄKI OYJ INTERIM REPORT 24.4.2025 AT 8:30
Huhtamäki Oyj’s Interim Report January 1–March 31, 2025: Stable performance in a volatile environment
Q1 2025 in brief
- Net sales remained at the previous year’s level at EUR 1,002 million (EUR 1,004 million)
- Comparable net sales growth was -2% at Group level
- Reported EBIT was EUR 94 million (EUR 78 million), adjusted EBIT was EUR 98 million (EUR 99 million)
- Reported EPS was EUR 0.54 (EUR 0.35); adjusted EPS was EUR 0.59 (EUR 0.55)
- The impact of currency movements was EUR 11 million on the Group’s net sales and EUR 1 million on EBIT
Key figures
| EUR million | Q1 2025 | Q1 2024 | Change | 2024 |
| Net sales | 1,001.6 | 1,003.9 | 0% | 4,126.3 |
| Comparable net sales growth | -2% | -2% | -0% | |
| Adjusted EBITDA1 | 152.0 | 149.0 | 2% | 622.2 |
| Margin1 | 15.2% | 14.8% | 15.1% | |
| EBITDA | 149.8 | 137.7 | 9% | 595.6 |
| Adjusted EBIT2 | 98.5 | 98.8 | 0% | 416.9 |
| Margin2 | 9.8% | 9.8% | 10.1% | |
| EBIT | 93.7 | 77.6 | 21% | 372.3 |
| Adjusted EPS, EUR3 | 0.59 | 0.55 | 7% | 2.48 |
| EPS, EUR | 0.54 | 0.35 | 57% | 2.14 |
| Adjusted ROI2 | 12.0% | 11.5% | 12.1% | |
| Adjusted ROE3 | 13.3% | 13.3% | 13.4% | |
| ROI | 11.2% | 10.7% | 10.8% | |
| ROE | 12.4% | 11.0% | 11.6% | |
| Capital expenditure | 30.1 | 36.6 | -18% | 247.9 |
| Free Cash Flow | -22.5 | 38.2 | <-100% | 215.8 |
| 1 Excluding IAC of | -2.1 | -11.3 | -26.5 | |
| 2 Excluding IAC of | -4.7 | -21.2 | -44.7 | |
| 3 Excluding IAC of | -4.6 | -20.9 | -35.1 |
Unless otherwise stated, all comparisons in this report are compared to the corresponding period in 2024. Figures of return on investment (ROI), return on equity (ROE) and return on net assets (RONA) as well as net debt to EBITDA presented in this report are calculated on a 12 month rolling basis.
IAC includes, but is not limited to, material restructuring costs and acquisition related costs (gains and losses on business combinations, professional and legal fees, material purchase price accounting adjustments for inventory, material purchase price amortization of intangible assets and changes in contingent considerations) as well as material impairment losses and reversals, gains and losses relating to sale of intangible and tangible assets, implementation costs concerning large projects with SaaS cloud computing technology, fines and penalties imposed by authorities and extraordinary taxes.
The figures in the tables are exact figures and consequently the sum of individual figures may deviate from the sum presented. Key figures have been calculated using exact figures.
President and CEO’s review
Despite the increased uncertainty in the market, our financial performance in the first quarter of 2025 was in line with the previous year’s level. Customers and consumers turned more cautious during the quarter due to geopolitical events.
During the quarter, net sales and adjusted EBIT remained at the previous year’s level. We continued to make progress on our efficiency program, compensating for the negative impact from a decrease in sales volumes. By the end of Q1, we have achieved a total of EUR 87 million in cost savings and these have been essential to compensate for cost inflation.
Fiber Packaging delivered strong growth with continued margin improvement. Our focus on margin improvement in Flexible Packaging yielded improved results, although the uncertainty in the market impacted net sales. In Foodservice Packaging, the softened demand had a negative impact on performance. In North America, performance was impacted by timing of sales in retail tableware, with sales partially pulled from January to December, and a seasonally late Easter.
During the year, we have taken action in our three focus areas; growth through all levers, disciplined capital allocation as well as accountability and speed of execution. To reach our financial ambitions, we need to accelerate growth using all these levers. We will build on our strong relationships with our customers, focusing even more on global accounts, as well as regional and local accounts. Capital will be prioritized and allocated to the highest yielding and fastest growing segments. We made good progress on implementing clearer accountability throughout the organization, to remove complexity and increase speed of execution.
The segments will have full responsibility for delivering financial results. We have taken a number of steps to increase accountability, including the establishment of a standalone Fiber Packaging segment. Furthermore, the segments are planned to own sustainability related to products and operations, business development, human resources operations as well as local IT support. To drive competitiveness, we established a global procurement organization.
Uncertainty in the market increased again during the first quarter, due to the tariff situation. Our US business mostly operates on a local-for-local basis, with a minor share of imports of both raw materials and finished goods. We will actively monitor and adapt according to the development in the market, working closely with our customers and suppliers.
We remain focused on driving actions to improve our performance, both to create growth, manage our costs and improve our profitability. I have confidence in our team’s ability to deliver value to all our stakeholders.
Ralf K. Wunderlich
President and CEO
Financial review Q1 2025
Net sales by business segment
| EUR million | Q1 2025 | Q1 2024 | Change |
| Foodservice Packaging | 234.2 | 241.1 | -3% |
| North America | 345.6 | 344.1 | 0% |
| Flexible Packaging | 328.7 | 335.2 | -2% |
| Fiber Packaging | 95.8 | 85.0 | 13% |
| Elimination of internal sales | -2.7 | -1.6 | |
| Group | 1,001.6 | 1,003.9 | 0% |
Comparable net sales growth by business segment
| Q1 2025 | Q4 2024 | Q3 2024 | Q2 2024 | Q1 2024 | |
| Foodservice Packaging | -4% | -1% | -7% | -6% | -5% |
| North America | -3% | 2% | 3% | -2% | -3% |
| Flexible Packaging | -2% | 5% | 0% | 2% | -1% |
| Fiber Packaging | 10% | 12% | 8% | 3% | 1% |
| Group | -2% | 3% | 0% | -1% | -2% |
The Group’s net sales remained at the previous year’s level at EUR 1,002 million (EUR 1,004 million) during the quarter. Sales volumes decreased, while sales prices increased. Net sales increased in Fiber Packaging and remained unchanged in North America, but decreased in Foodservice Packaging and Flexible Packaging. Comparable net sales growth was -2%. Foreign currency translation impact on the Group’s net sales was EUR 11 million (EUR -17 million) compared to 2024 exchange rates.
Adjusted EBIT by business segment
| Items affecting comparability | |||||
| EUR million | Q1 2025 | Q1 2024 | Change | Q1 2025 | Q1 2024 |
| Foodservice Packaging | 19.8 | 22.0 | -10% | -0.4 | -16.3 |
| North America | 40.5 | 47.9 | -15% | -1.9 | -1.0 |
| Flexible Packaging | 26.6 | 21.6 | 23% | -2.8 | -2.4 |
| Fiber Packaging | 12.3 | 8.6 | 43% | 0.5 | -1.2 |
| Other activities | -0.7 | -1.3 | -0.2 | -0.3 | |
| Group | 98.5 | 98.8 | 0% | -4.7 | -21.2 |
Adjusted EBIT margin by business segment
| Q1 2025 | Q4 2024 | Q3 2024 | Q2 2024 | Q1 2024 | |
| Foodservice Packaging | 8.5% | 9.9% | 8.5% | 9.2% | 9.1% |
| North America | 11.7% | 13.7% | 13.8% | 14.3% | 13.9% |
| Flexible Packaging | 8.1% | 8.4% | 7.3% | 6.4% | 6.4% |
| Fiber Packaging | 12.8% | 15.2% | 9.2% | 12.9% | 10.1% |
| Group | 9.8% | 10.4% | 10.0% | 10.2% | 9.8% |
The Group’s adjusted EBIT remained at the previous year’s level at EUR 98 million (EUR 99 million) and reported EBIT was EUR 94 million (EUR 78 million). The company’s actions to improve profitability and higher sales prices had a positive impact on profitability, balancing the negative impact from lower sales volumes. The Group’s adjusted EBIT margin remained at the previous year’s level and was 9.8% (9.8%). Foreign currency translation impact on the Group’s earnings was EUR 1 million (EUR -2 million).
Adjusted EBIT excludes EUR -4.7 million (EUR -21.2 million) of items affecting comparability (IAC), including costs of implementing operational efficiency measures.
Adjusted EBIT and IAC
| EUR million | Q1 2025 | Q1 2024 |
| Adjusted EBIT | 98.5 | 98.8 |
| Acquisition related costs | – | 0.0 |
| Restructuring gains and losses, including writedowns of related assets | -1.3 | -17.2 |
| PPA amortization | -2.3 | -2.2 |
| Settlement and legal fees of disputes | – | -0.1 |
| Property damage incidents | 0.7 | -0.5 |
| Implementation costs concerning large projects with SaaS cloud computing technology | -1.9 | -1.2 |
| EBIT | 93.7 | 77.6 |
Net financial expenses were EUR 14 million (EUR 21 million). The decrease was due to the unusually high level in the comparison period, partly related to the devaluation of the Egyptian pound. Tax expense was EUR 21 million (EUR 18 million). The corresponding tax rate was 26% (32%). The decrease was due to the unusually high tax rate in the comparison period, related to certain non-deductible costs related to the restructuring program. Profit for the first quarter was EUR 59 million (EUR 39 million). Adjusted earnings per share (EPS) was EUR 0.59 (EUR 0.55) and reported EPS EUR 0.54 (EUR 0.35). Adjusted EPS is calculated based on adjusted profit for the period, which excludes EUR -4.6 million (EUR -20.9 million) of IAC.
Adjusted profit and IAC
| EUR million | Q1 2025 | Q1 2024 |
| Adjusted profit for the period attributable to equity holders of the parent company | 61.5 | 57.2 |
| IAC in EBIT | -4.7 | -21.2 |
| IAC in Financial items | 0.2 | -0.5 |
| IAC Tax | -0.1 | 0.8 |
| IAC attributable to non-controlling interest | 0.1 | 0.1 |
| Profit for the period attributable to equity holders of the parent company | 56.9 | 36.3 |
Three-year program to accelerate strategy implementation and to bring MEUR 100 cost savings
On November 30, 2023, Huhtamaki announced that the company is accelerating the strategy implementation by starting a program which is expected to materially support the profitability with efficiency improvements leading to savings of approximately EUR 100 million over three years. In February 2025, the company stated that it expects to achieve the EUR 100 million savings target and to complete the program ahead of the original schedule. The costs of the program were originally expected to be approximately EUR 80 million, which upon materialization will be treated as items affecting comparability. According to the updated estimate, the total costs of the program are expected to be below EUR 80 million.
By the end of Q1 2025, the program had generated total cost savings of approximately EUR 87 million, significantly compensating for the continued high cost inflation. Program-related costs accounted for EUR 25 million by the end of Q1 2025, including a positive impact from divestment of real estate in China.
Outlook for 2025 (unchanged)
The Group’s trading conditions are expected to remain relatively stable during 2025. The good financial position will enable the Group to address profitable growth opportunities.
Annual General Meeting 2025
Huhtamäki Oyj’s Annual General Meeting (AGM) will be held on Thursday, April 24, 2025 at 11:00 (EEST) at Scandic Marina Congress Center, Katajanokanlaituri 6, Helsinki, Finland.
Teleconference
Huhtamaki will arrange a combined audiocast and teleconference today at 9:00. Huhtamaki’s CEO & President Ralf K. Wunderlich and CFO Thomas Geust will present the results. The event will be followed by a Q&A session. The event will be held in English, and it can be followed in real-time.
A link to the audiocast is available at: https://huhtamaki.events.inderes.com/q1-2025
A link to the teleconference is available at: https://events.inderes.com/huhtamaki/q1-2025/dial-in.
Registration is required for the teleconference. After the registration you will be provided with phone numbers and a conference ID to access the conference.
An on-demand replay of the audiocast will be available shortly after the end of the call at https://www.huhtamaki.com/en/investors.
Financial reporting in 2025
In 2025, Huhtamaki will publish financial information as follows:
Half-yearly Report, January 1 – June 30, 2025 July 24
Interim Report, January 1 – September 30, 2025 October 23
This is a summary of Huhtamäki Oyj’s Interim Report January 1–March 31, 2025. The complete report is attached to this release and is also available at the company website at www.huhtamaki.com.
For further information, please contact:
Kristian Tammela, Vice President, Investor Relations, tel. +358 10 686 7058
HUHTAMÄKI OYJ
Corporate Communications
About Huhtamaki
Huhtamaki is a leading global provider of sustainable packaging solutions for consumers around the world. Our innovative products protect on-the-go and on-the-shelf food and beverages, and personal care products, ensuring hygiene and safety, driving accessibility and affordability, and helping prevent food waste. We embed sustainability in everything we do.
Huhtamaki has over 100 years of history and a strong Nordic heritage. Our around 18 000 professionals are operating in 36 countries and 102 locations around the world. Our values are Care Dare Deliver. In 2024 Huhtamaki’s net sales totaled EUR 4.1 billion. Huhtamäki Oyj is listed on the Nasdaq Helsinki and the head office is in Espoo, Finland. Find out more at www.huhtamaki.com.
Attachment
- Huhtamaki Interim Report Q1 2025
