Huhtamäki Oyj’s Interim Report January 1–March 31, 2020: Solid net sales growth and profitability in an increasingly uncertain environment
Q1 2020 in brief
- Net sales increased 5% to EUR 845 million (EUR 802 million)
- Adjusted EBIT was EUR 74 million (EUR 68 million); reported EBIT was EUR 83 million (EUR 68 million)
- Adjusted EPS was EUR 0.46 (EUR 0.44); reported EPS was EUR 0.53 (EUR 0.44)
- Comparable net sales growth was 3% at Group level and -3% in emerging markets
- Currency movements had a positive impact of EUR 10 million on the Group’s net sales and EUR 1 million on EBIT
Unless otherwise stated, all comparisons in this report are compared to the corresponding period in 2019. Figures of return on investment (ROI), return on equity (ROE) and return on net assets (RONA) as well as net debt to EBITDA presented in this report are calculated on a 12-month rolling basis.
The figures in the tables are exact figures and consequently the sum of individual figures may deviate from the sum presented. Key figures have been calculated using exact figures.
Charles Héaulmé, President and CEO
“During the first quarter of 2020, our net sales increased by 5% with a comparable sales growth of 3% and improved profitability. This represents solid performance in a quarter that was marked by contrast – while good demand for food packaging continued, the outbreak of COVID-19 quickly transformed the overall business context. The lockdown in China and consequent drop in demand was followed in March by further impact in the rest of the world as the COVID-19 crisis proceeded to spread globally. This change was visible in our Foodservice segment, while demand in our other segments increased.
The safety and health of our employees and stakeholders remain our number one focus and priority during the COVID-19 pandemic. We are following the guidelines from governments and international and local health authorities and have taken actions to safeguard the continuity of our business. We have also taken all relevant measures to secure our cash position and reprioritize our costs and investments.
Despite serious turbulence in parts of our business, I am confident that together with our customers and other stakeholders we will successfully navigate through this crisis and come out of it even stronger than before. We have a diversified portfolio and a healthy balance sheet, and we are carrying on in our planned investments and efficiency activities, which are vital to our future success.
To maintain our growth trajectory and anticipate key transformative trends, we have renewed our long-term strategy for 2030. We will continue on our path as a growth company, and will further focus on competitiveness, talent, and sustainability. We are taking a leading role in addressing the global challenges of circularity and climate change within the food packaging industry. We will embed sustainability in everything we do – and for this reason, we have set high ambitions for the future.
I would like to extend a “Thank you!” to all Huhtamaki employees for demonstrating their commitment to our values during these unforeseen and unprecedented times. I am impressed by the agility of our organization to adapt and collaborate so well under these new work conditions. This has enabled us, for example, to use machines made idle by the crisis and launch, in record time, a new product line of certified Personal Protective Equipment (PPE) devoted to healthcare workers. I am convinced that the spirit and the engagement will help us get through this challenging period.”