MM Group results for the first half of 2023

  • Earnings below previous year as expected
  • Growth in pharmaceutical packaging due to acquisitions in the previous year
  • Inflation-related consumer reluctance to buy is putting pressure on end markets
  • Strong decline in volume at MM Board & Paper due to demand and investment
  • No recovery discernible in Q3
  • Profit and cash protection program initiated
  • Adaptation of the investment program: Kwidzyn project start postponed to 2024
  • Margin improvement – ​​most important goal of the measures introduced

Peter Oswald, MM CEO: “The development of the MM Group in the first half of the year reflects the persistently weak demand in the cardboard and paper sectors after the record year 2022. As already communicated in mid-June, the significant drop in earnings is mainly due to the weak sales development in the division Attributed to MM Board & Paper. In contrast, the MM Packaging division was able to record an overall pleasing performance with the successful integration of last year’s acquisitions in the resilient pharmaceutical packaging area and taking into account one-off restructuring costs”.

The historically unusual decline in volumes on the European cartonboard market turned out to be higher than expected, mainly as a result of the inflation-related reluctance to buy consumer goods and the reduction of large inventories by customers. In addition, MM recorded significant investment-related downtimes in the Frohnleiten and Neuss board mills in the first half of the year. Together with the annual maintenance shutdowns at the Kwidzyn pulp mill, this led to a significant decline in volumes and earnings in the MM Board & Paper Division.

At EUR 2,181.4 million, the consolidated sales of the group were slightly below the previous year’s figure (H1 2022: EUR 2,218.5 million). A decrease in the MM Board & Paper division, which was mainly due to volume, was offset by an increase in the MM Packaging division due to acquisitions and prices.

The operating result fell by EUR 181.0 million from EUR 285.0 million to EUR 104.0 million. This decline is mainly due to extensive shutdowns at MM Board & Paper due to market and remodeling. The Group’s operating margin was therefore 4.8% (H1 2022: 12.8%).

The profit for the period fell from EUR 205.8 million to EUR 63.3 million.
details at: https://www.mm.group/newsroom/presseaussendungen/ergebnisse-zum-1-halbjahr-2023/

Related Posts

Georgia-Pacific Announces $150 Million Investment in Halsey Facility

Georgia-Pacific seeks to grow its retail consumer tissue business through a $150 million investment in its facility in Halsey, Oregon. Investments at Halsey, which started in 2022, will increase production capacity for high quality bath tissue, with initial production expected in 2025. When the work at this facility is complete, Georgia-Pacific will have invested more than $200 million in paper machine and converting assets. “This truly is an investment in our customers and consumers who appreciate the quality of our products,” said Vivek Joshi, president of the retail tissue, towel, and napkin business for Georgia-Pacific. “It is a clear indication of Georgia-Pacific’s focus on growing our premium tissue business and creating products that consumers value.” The Halsey facility makes both bath tissue and paper towels for the consumer market, and the improvements will support Georgia-Pacific’s premium tissue offerings, such as Quilted Northern Ultra Plush® tissue, as well as customer branded tissue.

Smurfit Kappa to invest $100 million to drive down emissions in Colombia

Smurfit Kappa, world leader in paper-based packaging, is investing almost USD100 million in a sustainable biomass boiler which will reduce its global Scope 1 and Scope 2 CO2 emissions by approximately 6%. The ambitious project is the latest example of the circularity that permeates every aspect of the company’s operations. Smurfit Kappa has successfully implemented biomass boilers at several other locations including the Nervion, Piteå and Sangüesa paper mills in Europe.

Metsä Board publishes interactive roadmaps on 2030 climate and water targets

Metsä Board, part of Metsä Group, has published new detailed roadmaps to help visualise the measures it will take to achieve the ambitious 2030 targets regarding climate change and water use. Roadmaps will be updated at least once a year, both in terms of the actual performance and future investments. Future investments, which are at the planning stage, are also included in the roadmaps. Metsä Board’s targets include that, by the end of 2030, its mills will phase out the use of any fossil fuels and any fossil-based purchased energy meaning that production will no longer generate any fossil-based carbon dioxide emissions.
Back To Top
×Close search
Search