Results for the first quarter of 2025
- Significant earnings increase compared with previous year’s 1st quarter
- Demand remains soft
- MM focuses on cost, technology and innovation leadership
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Group Key Indicators – IFRS
1) The calculation is based on the last twelve months.
2) excl. temporary workers; previous year’s value as of December 31, 2024
3) incl. impairment on property, plant and equipment and intangible assets
Peter Oswald, MM CEO, comments: “The MM Group recorded a significant increase in earnings in the 1st quarter of 2025 compared with the 1st quarter of the previous year. The market situation and volume development were selectively slightly better than in the 4th quarter, but without any noticeable upturn and with persistent margin pressure.
MM Food & Premium Packaging achieved a consistently strong performance due to productivity increases and cost reductions.
MM Pharma & Healthcare Packaging recorded market demand at the previous year’s level during the 1st quarter, though earnings came in lower.
MM Board & Paper improved its earnings significantly compared with the weak prior-year figure. While capacity utilisation remained steady, the price level presented a heterogeneous picture. “
“In view of the continuing weak overall economic situation, we will further strengthen our competitiveness by reducing costs while increasing quality, sustainability and innovative strength.“, underlines Oswald.
Income statement
At EUR 1,042.6 million, the Group’s consolidated sales were slightly above the previous year’s figure (Q1 2024: EUR 1,025.0 million).
Adjusted operating profit rose by EUR 21.4 million from EUR 39.6 million to EUR 61.0 million. This increase resulted from the divisions MM Board & Paper and MM Food & Premium Packaging. The Group’s adjusted operating margin was 5.8 % (Q1 2024: 3.9 %).
Financial income amounted to EUR 3.4 million (Q1 2024: EUR 6.6 million). The decline in financial expenses from EUR -21.4 million to EUR -15.9 million resulted in particular from a lower interest level for variable-interest financing. “Other financial result – net” changed from EUR -6.8 million to EUR -11.2 million, mainly owing to currency translations.
Profit before tax reached EUR 31.8 million after EUR 18.0 million in the previous year. Income tax expense amounted to EUR 10.7 million (Q1 2024: EUR 7.1 million), resulting in an effective Group tax rate of 33.6 % (Q1 2024: 39.6 %).
Profit for the period increased accordingly from EUR 10.9 million to EUR 21.1 million.
Outlook
Against the backdrop of the weak demand situation and high uncertainty, we expect market conditions to remain difficult in the near term. Our top priority is therefore to consistently strengthen the MM Group’s competitiveness by pursuing cost, technology and innovation leadership. Our comprehensive efficiency improvement programs and optimisation measures are well on track and provide MM with stability and support even in a challenging environment. We still expect the sale of TANN Group to be completed in the 1st half of 2025.
MM Food & Premium Packaging
Market demand for folding cartons has continued to show no signs of recovery in the first months of 2025. Due to the weak capacity utilisation of many competitors and cost pressure from customers, we are facing ongoing considerable margin pressure.
In order to secure and improve the division’s profitability in this challenging situation, we implemented a large number of projects to optimise cost efficiency and increase productivity.
We are consistently pursuing organic growth in the market through the systematic acquisition of new business, particularly in the area of plastic substitution, as well as through strict cost management.
Sales at EUR 421.5 million were slightly below the previous year’s figure (Q1 2024: EUR 428.9 million). Adjusted operating profit increased from EUR 40.8 million to EUR 46.3 million, resulting in a good adjusted operating margin of 11.0 % (Q1 2024: 9.5 %). Cash flow from operating activities changed to EUR -31.2 million (Q1 2024: EUR 47.3 million), mainly due to an increase in working capital.
At 775 million m2 volume produced came in 1.4 % below the previous year’s figure (Q1 2024: 787 million m2). A major fire in Poland impacted volume development.
MM Pharma & Healthcare Packaging
1) including interdivisional sales
2) The calculation is based on the last twelve months.
Market demand remains at the previous year’s level. Overall, the division was able to counteract the lack of volume growth with strong price discipline and productivity gains.
Consistent efforts are being made to grow on the basis of operational excellence, first-class services and forward-looking, sustainable solutions, and to strengthen profitability in a targeted manner.
The division’s sales of EUR 163.4 million in the first months of 2025 were close to the previous year’s level of EUR 164.8 million. The volume produced developed correspondingly at 234 million m2 (Q1 2024: 245 million m2).
Adjusted operating profit amounted to EUR 8.8 million (Q1 2024: EUR 12.1 million) and the adjusted operating margin was 5.4 % (Q1 2024: 7.3 %). Cash flow from operating activities totalled EUR -7.8 million
(Q1 2024: EUR 19.8 million).
MM Board & Paper
Market demand in several Board & Paper product areas has been stable or slightly better since the beginning of the year, but without any noticeable upturn. The average order backlog of MM Board & Paper remained at the previous year’s level of 182,000 tonnes. Production volume increased by 2.2 % to 813,000 tonnes (Q1 2024: 795,000 tonnes), allowing for slightly higher capacity utilisation.
After rising sharply until last summer, recovered paper and pulp prices have fallen slightly but remain well above the previous year’s level. Average sales prices showed a mixed picture in the individual product areas, but rose slightly overall.
The implementation of sustainable cost savings is being pursued consistently at all locations.
Sales of EUR 510.0 million came in somewhat above the previous year’s figure (Q1 2024: EUR 483.5 million). Adjusted operating profit totalled EUR 5.9 million, compared with EUR -13.3 million in the previous year. The adjusted operating margin amounted to 1.1 % (Q1 2024: -2.7 %). Cash flow from operating activities changed to EUR -89.2 million (Q1 2024: EUR -14.6 million), mainly due to working capital.
Quarterly Overview
| (consolidated, in millions of EUR) | Q1/2024 | Q2/2024 | Q3/2024 | Q4/2024 | Q1/2025 |
| Sales | 1,025.0 | 1,018.9 | 1,024.9 | 1,010.8 | 1,042.6 |
| Adjusted EBITDA | 94.5 | 107.2 | 94.0 | 122.8 | 119.3 |
| Adjusted EBITDA margin (%) | 9.2 % | 10.5 % | 9.2 % | 12.2 % | 11.4 % |
| Adjusted operating profit | 39.6 | 51.0 | 35.7 | 63.7 | 61.0 |
| Adjusted operating margin (%) | 3.9 % | 5.0 % | 3.5 % | 6.3 % | 5.8 % |
| Operating profit | 39.6 | 51.0 | 35.7 | 63.7 | 55.5 |
| Capital employed1) | 3,515.0 | 3,455.2 | 3,410.6 | 3,376.9 | 3,407.8 |
| Return on capital employed1) (%) | 5.4 % | 5.6 % | 4.8 % | 5.6 % | 6.2 % |
| Profit before tax | 18.0 | 33.2 | 19.7 | 43.4 | 31.8 |
| Income tax expense | (7.1) | (6.7) | (4.8) | 14.8 | (10.7) |
| Profit for the period | 10.9 | 26.5 | 14.9 | 58.2 | 21.1 |
| Net profit margin (%) | 1.1 % | 2.6 % | 1.5 % | 5.8 % | 2.0 % |
| Earnings per share (in EUR) | 0.52 | 1.30 | 0.72 | 2.87 | 1.04 |
| Cash flow from operating activities | 52.5 | 148.1 | (33.0) | 348.7 | (128.2) |
| Free cash flow | (38.5) | 97.9 | (78.2) | 321.0 | (183.5) |
| Capital expenditures | 92.8 | 52.7 | 45.8 | 29.6 | 55.7 |
1) The calculation is based on the last twelve months.
| (in millions of EUR) | Q1/2024 | Q2/2024 | Q3/2024 | Q4/2024 | Q1/2025 |
| Sales1) | 483.5 | 502.7 | 491.1 | 477.0 | 510.0 |
| Adjusted EBITDA | 13.4 | 29.3 | 7.5 | 40.1 | 33.8 |
| Adjusted operating profit | (13.3) | 2.2 | (20.0) | 11.9 | 5.9 |
| Adjusted operating margin (%) | -2.7 % | 0.4 % | -4.1 % | 2.5 % | 1.1 % |
| Operating profit | (13.3) | 2.2 | (20.0) | 11.9 | 5.9 |
| Capital employed2) | 1,863.1 | 1,835.8 | 1,815.8 | 1,801.3 | 1,825.2 |
| Return on capital employed2) (%) | -3.3 % | -2.7 % | -3.0 % | -1.1 % | 0.0 % |
| Cash flow from operating activities | (14.6) | 61.2 | (59.6) | 136.2 | (89.2) |
| Free cash flow | (59.3) | 32.8 | (81.0) | 125.1 | (115.0) |
| Capital expenditures | 44.8 | 28.9 | 23.1 | 10.0 | 25.9 |
| Tonnage produced (in thous. of tonnes) | 795 | 812 | 747 | 791 | 813 |
| Cartonboard3) | 450 | 465 | 431 | 417 | 457 |
| Paper | 126 | 119 | 118 | 134 | 130 |
| Pulp4) | 219 | 228 | 198 | 240 | 226 |
| Market pulp | 32 | 33 | 19 | 35 | 40 |
| Internal pulp | 187 | 195 | 179 | 205 | 186 |
1) including interdivisional sales
2) The calculation is based on the last twelve months.
3) including Coated liner
4) Chemical pulp and CTMP
Forthcoming Results:
August 21, 2025 Half-Year Results 2025
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