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/

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