The Mayr-Melnhof Group’s (MM) 1H 2022 consolidated sales increased by Euro 928.9 million to Euro 2,218.5 million, compared to Euro 1,289.6 million in 1st half of 2021. This growth results mainly from the previous year’s acquisitions as well as the passing on of cost increases through higher prices.
At Euro 285.0 million, operating profit was Euro 192.9 million above the previous year’s value (1st half of 2021: Euro 92.1 million). The significant rise primarily results from the division MM Board & Paper. In the previous year, one-off expenses from adjustment and restructuring measures amounting to Euro 26.1 million were recognized in the Packaging division. The Group's operating margin thus reached 12.8 %.
At Euro 270.2 million, profit before tax was also above the previous year’s level. Income tax expense amounted to EUR 64.4 million (1st half of 2021: Euro 20.7 million), resulting in an effective Group tax rate of 23.8 % (1st half of 2021: 25%).
Profit for the period rose by Euro 143.6 million to Euro 205.8 million, compared to Euro 62.2 million in 1st half of 2021.
Peter Oswald, MM CEO, comments: “Demand for our products is strong, as consumers prefer natural, recyclable packaging made from renewable, fiber-based raw materials. Our strategy of focused organic growth and value enhancing acquisitions combined with a strong grip on improvement of productivity is starting to pay off. In the 1st half-year organic growth of Packaging was close to 5 %, just limited by capacity restrictions, as our customers value our increased focus on innovation and sustainability as well as supply security due to our backward integration with cartonboard. The acquisition of Essentra Packaging, expected to be closed in the 4Q, will take MM to a global leadership position in secondary pharmaceutical packaging and position us for more organic growth and resilience throughout the business.”
2Q results
In the course of very good demand as well as increased prices to compensate for the ongoing strong cost inflation, consolidated sales of Euro 1,158.1 million were above the value of the 1Q 2022 (Euro 1,060.4 million).
The Group's operating profit rose to Euro 173.9 million after Euro 111.1 million in the 1Q 2022 and Euro 30.9 million in the 2Q of the previous year. The latter was mainly characterized by one-off effects in the amount of Euro 26.1 million from restructuring measures in the packaging division as well as the strong burden from the enormous increase in input costs in the cartonboard sector. The operating margin was thus at 15.0 %.
MM is a leading producer of cartonboard and folding cartons with an attractive offer in kraft papers and uncoated fine papers.
