Huhtamäki reports stable market in first half

- Heavy sales growth from acquisitions

 

- Good financial position and ability to generate a positive cash flow to enable focus on profitable growth opportunities

 

Consumer and specialty packaging manufacturer Huhtamäki Group reported stable trading conditions during the first half of 2012, with the rest of the year set to follow suit.

 

Huhtamäki said its trading conditions remained stable throughout the reporting period despite increased general economic uncertainty during the second quarter.

 

Demand for consumer packaging was healthy during the reporting period but there were some signs of increased cautiousness towards the end of the second quarter, as customers avoided building inventories.

 

Based in Finland, Huhtamäki focuses on molded fiber packaging, flexible packaging, release films and paper cup manufacture, with an offering that includes standardized products and customized packaging, as well as complete packaging systems.

 

Net sales for the first half of 2012 were up on the same period in 2011, totaling €1.2 billion compared to slightly over €1 billion in the opening six months of last year.

 

Second quarter net sales were similarly up year-on-year, from €528 million to €618 million.

 

The 16 percent net sales growth during the reporting period included half attributable to the businesses acquired during the previous 12 months.

 

Organic growth was six percent and the strongest contributors were the flexible packaging and molded fiber segments.

 

As a result of healthy net sales growth, Huhtamäki’s earnings before interest and taxes (EBIT) grew to €83 million from €67 million, and €49 million from €40 million in the second quarter.

 

The company's trading conditions are expected to remain relatively stable during the rest of 2012.

 

The good financial position and ability to generate a positive cash flow will enable Huhtamäki to further address profitable growth opportunities.

 

Growth in net sales is expected to continue and earnings per share are expected to increase significantly compared to the €0.87 (excluding non-recurring items) achieved in 2011.

 

Capital expenditure is expected to be below €100 million.

 

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