Results for the first quarter of 2024

• Result below previous year as expected
• Significant volume growth at MM Board & Paper
• Continuity at a good level at MM Packaging
• Weak consumption continues to weigh on end markets
• Pressure on margins carries on
• Successful profit & cash protection programme will be continued
• Sales price development decisive for earnings situation in 2024

^{1) adjusted for material one-off effects (material defined as impact on operating profit of more than EUR 10 million)
2) The calculation is based on the adjusted result figure and refers to the average of the last 12 months.
3) excl. temporary workers; previous year’s value as of December 31, 2023
4) incl. impairment on property, plant and equipment and intangible assets}

Peter Oswald, MM CEO, comments: “The MM Group recorded a decline in both Group sales and adjusted operating profit in the 1^st quarter of 2024 compared to the previous year’s value, due to the earnings performance in the Board & Paper division. The destocking in the supply chain has been largely completed, leading to a significant recovery of volumes sold in Board & Paper. However, pressure on margins continued as expected, as price increases will only compensate for the recent rise in production costs from the 2^nd quarter onwards. In contrast, the Packaging division recorded a sligh increase in results compared to the previous year, even though the margin was below the strong level of the 3^rd and 4^th quarter of 2023.

Against this background, the profit & cash protection programme, which has already been successfully implemented, and the measures to intensify market penetration will be systematically continued in 2024.

As consumer spending on everyday goods remains subdued, the end markets continue to record hardly any growth. In particular, the development of sales prices will remain decisive for the earnings situation in 2024.”, underlines Oswald.

^{1) including interdivisional sales}

The MM Board & Paper division achieved a significant volume increase in the 1^st quarter, following extensive market- and rebuild-related downtime in the previous year. Sales volume increased by 19.2 % from 473,000 tonnes to 564,000 tonnes, while production volume rose by 18.0 % to 576,000 tonnes (1Q 2023: 488,000 tonnes). Market share gains were also achieved selectively as part of a sales excellence programme. The division’s average order backlog amounted to 182,000 tonnes in the first three months, compared to 143,000 tonnes in the same period of the previous year.

Both recovered paper and pulp prices have recently been experiencing an upward trend on the procurement markets, thus sales prices will be increased from the 2^nd quarter onwards.

At EUR 483.5 million, sales were price-related 7.2 % below the comparable figure (1Q 2023: EUR 521.2 million) despite significantly higher volumes. The adjusted operating profit amounted to EUR -13.3 million (1Q 2023: EUR 27.7 million), the adjusted operating margin to -2.7 % (1Q 2023: 5.3 %).

^{1) including interdivisional sales}

The overall conditions in the folding carton business continued to be characterised by weak consumption in many end markets for everyday consumer goods in the 1^st quarter of 2024. However, by serving a broad range of industries and through its global positioning, MM Packaging was able to maintain a balance and deliver stable results. Due to increasing competitive and margin pressure, the implementation of the profit & cash protection programme and selective structural adjustments have high priority alongside the generation of new business.

At EUR 592.6 million, sales were price- and volume-related 9.8 % lower than the previous year’s figure of EUR 656.7 million. The adjusted operating profit increased by 4.1 % from EUR 51.0 million to EUR 52.9 million, primarily due to successful cost saving measures. The adjusted operating margin was therefore 8.9 % (1Q 2023: 7.8 %). Volume produced at 1,032 million m² came in 5.7 % below the previous year’s figure (1Q 2023: 1,094 million m²).