In the Q2 2024, the Mayr-Melnhof Group (MM Group) was able to improve results compared to the previous quarter and exceeded the previous year's figure.

Consolidated sales of Euro 1,018.9 million were somewhat below the Q1 2024 (Euro 1,025.0 million) as well as the previous year's level (Q2 2023: Euro 1,059.3 million).

The Group's adjusted operating profit increased to Euro 51.0 million, exceeding both the previous quarter's and the previous year's figure. The adjusted operating margin came in at 5.0 %.

Adjusted EBITDA reached Euro 107.2 million. Profit for the period amounted to Euro 26.5 million, compared to Q2 2023 of Euro 28.4 million.

1H 2024 results

At Euro 2,043.9 million, the Group's consolidated sales were below the previous year's figure (1H 2023: Euro 2,181.4 million), mainly due to lower selling prices.

Adjusted operating profit decreased by Euro 36.4 million from Euro 127.0 million to Euro 90.6 million. This decrease is primarily due to lower average prices in the Board & Paper division. The Group's adjusted operating margin was 4.4 %.

Financial income amounted to Euro 13.3 million (1H 2023: Euro 3.7 million). The increase in financial expenses from Euro -24.7 million to Euro -42.7 million resulted in particular from higher interest rates for variable-interest financing.

Profit before tax totalled Euro 51.2 million after Euro 77.2 million in the previous year. Income tax expense amounted to Euro 13.8 million, resulting in an effective Group tax rate of 27.1 %.

Profit for the period decreased accordingly from Euro 63.3 million to Euro 37.4 million.

Peter Oswald, MM CEO, comments: "The MM Group succeeded in improving its adjusted EBITDA and adjusted operating profit in the Q2 2024 compared to both the previous two quarters as well as last year's Q2. The consistent execution of the profit & cash protection programme led to a significant increase in cash flow from operating activities and free cash flow. At the same time, the Group's financial leverage remained largely constant."

Outlook

MM stays focused on enhancing earnings and cash generation by continuing its profit & cash protection programme. The majority of savings are expected to materialise in 2025. Capital expenditures will remain significantly lower than in previous years, as the major projects have already been successfully completed. Our strategy and capital allocation we will continue to focus on expanding in growing, innovative and sustainable market segments, but we will prioritise improving margins before pursuing further non-organic growth.

MM is a global leader in consumer packaging. The Group provides packaging solutions for cartonboard and folding cartons with an attractive offer in kraft papers, uncoated fine papers, leaflets and labels.