Huhtamäki Oyj’s Interim Report January 1 – March 31, 2021: Improved profitability due to gradual recovery in demand

Billerud has agreed with the investment company Mimir Group about a divestment of Managed Packaging, which offers packaging solutions to global brand owners. The transaction is expected to be completed during August 2023. The intention to divest the business unit Managed Packaging is a consequence of Billerud’s focus on packaging materials, which means a reduced strategic importance of service offerings. The sale will reduce complexity and positively impact Billerud's EBITDA margin.

UPM Specialty Papers and Fazer have jointly developed a new type of packaging for Fazer's Oat Rice Pies. Traditional plastic laminated packaging paper has been replaced with an innovative paper solution, which is easier to recycle and does not compromise the protection it provides the rice pies inside. The award-winning packaging has been recognized in the WorldStar, ScanStar and New Wood competitions and can already be found in the chill food aisles of Finnish supermarkets. The new Fazer Oat Rice Pie packaging is in line with both Fazer's Sustainable Packaging Vision and UPM's Biofore strategy. The new packaging solution is the result of more than two years of long-term development work to ensure the recyclability of the packaging without compromising food safety and the quality of the rice pies.

Sales of $1,103 million increased by $82 million or 8% compared to the same period last year, reflecting the consolidation of results from the Greenpac Mill beginning in the second quarter, improved pricing and sales mix in all four of the Corporation's business segments, and additional sales from recovery and recycling activities due to higher recycled fibre pricing. These benefits were partially offset by lower volumes in our North American operations, and the stronger Canadian dollar which resulted in a less favourable CAD/USD exchange rate. Third quarter operating income stood at $51 million , a slight improvement from $50 million last year. This performance reflects the inclusion of Greenpac in the current quarter, price increases mainly in Containerboard, and lower Corporate activities costs related to lower stock-based compensation expense. These were offset by higher raw material costs, and higher production costs in Containerboard and Tissue, due to freight and logistics, and increased use of outside contracting. Specific items recorded in the current period (please refer to the ''Supplemental Information on Non-IFRS Measures'' section for more details) decreased operating income by $2 million . On an adjusted basis, third quarter operating income stood at $53 million , down slightly from $55 million in the prior year period. Click Read More below for additional information.