Huhtamäki Oyj’s Half-yearly Report January 1 – June 30, 2022: Strong performance continued

Q2 2022 in brief
*Net sales increased 31% to EUR 1, 147 million (EUR 877 million)
*Adjusted EBIT was EUR 103 million (EUR 80 million); reported EBIT was EUR 97 million (EUR 75 million)
*Adjusted EPS was EUR 0.63 (EUR 0.53); reported EPS was EUR 0.58 (EUR 0.50)
*Comparable net sales growth at Group level was 17% and 16% in emerging markets
*The impact of currency movements on the Group’s net sales was EUR 68 million and EUR 6 million on EBIT

H1 2022 in brief
*Net sales increased 31% to EUR 2,197 million (EUR 1,679 million)
*Adjusted EBIT was EUR 200 million (EUR 157 million); reported EBIT was EUR 190 million (EUR 147 million)
*Adjusted EPS was EUR 1.26 (EUR 1.02) reported EPS was EUR 1.21 (EUR 0.95)
*Comparable net sales growth at Group level was 18% and 17% in emerging markets
*The impact of currency movements on the Group’s net sales was EUR 103 million and EUR 9 million on EBIT
*Capital expenditure was EUR 128 million (EUR 85 million)
*Free cash flow was EUR -66 million (EUR 35 million)

Charles Héaulmé, President and CEO
“We continued delivering a strong performance in the second quarter of 2022, despite volatile market conditions. We faced strong headwinds created by supply chain constraints, challenges with raw material availability and geopolitical turmoil.

Net sales increased by 31% in the second quarter. In comparable terms, growth reached 17%, driven by pricing actions. In most markets, demand developed favorably and has returned to pre-pandemic levels, however with some exceptions, particularly in China. Tensions on raw material availability limited our capacity to further grow volumes according to the demand, most notably in North America. We continued to mitigate the significant inflation which impacted all our major input costs, including raw materials, freight costs, energy and labor. We protected our profitability through operational efficiency improvements and pricing actions, with the adjusted EBIT increasing by 29%. Cash flow remained impacted by increased working capital and capital expenditure.

We continued our organic investment into sustainable product innovation and business expansion. For example, we announced the expansion of our molded fiber product manufacturing unit in Hammond, Indiana, US. This investment in fiber technology supports market demand for more sustainable solutions in North America, such as egg cartons and cup carriers. The planned USD 100 million investment will start ramping up towards the end of 2023.

To secure our long-term financing, we launched a sustainability-linked EUR 500 million bond. It also underlines our commitment to embed sustainability in everything we do.
details at: https://www.huhtamaki.com/en/media/media/stock-exchange-release/2022/huhtamaki-oyjs-half-yearly-report-january-1–june-30-2022-strong-performance-continued/

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