HUHTAMÄKI OYJ INTERIM REPORT
Huhtamäki Oyj’s Interim Report January 1–September 30, 2021: Solid performance despite a challenging cost environment
Q3 2021 in brief
- Net sales increased 6% to
EUR 896 million (EUR 847 million ) - Adjusted EBIT was
EUR 76 million (EUR 86 million ); reported EBIT wasEUR 65 million (EUR 65 million ) - Adjusted EPS was
EUR 0.51 (EUR 0.56 ); reported EPS wasEUR 0.41 (EUR 0.43 ) - Comparable net sales growth was 4% at Group level and 5% in emerging markets
- The impact of currency movements was
EUR 3 million on the Group’s net sales andEUR 0 million on EBIT
Q1-Q3 2021 in brief
- Net sales increased 3% to
EUR 2,575 million (EUR 2,489 million ) - Adjusted EBIT was
EUR 233 million (EUR 229 million ); reported EBIT wasEUR 211 million (EUR 217 million ) - Adjusted EPS was
EUR 1.53 (EUR 1.46 ); reported EPS wasEUR 1.35 (EUR 1.40 ) - Comparable net sales growth was 6% at Group level and 11% in emerging markets
- The impact of currency movements was
EUR -78 million on the Group’s net sales andEUR -8 million on EBIT
Key figures
EUR million | Q3 2021 | Q3 2020 | Change | Q1-Q3 2021 | Q1-Q3 2020 | Change | |||||||
Net sales | 896.3 | 847.3 | 6% | 2,575.3 | 2,489.0 | 3% | |||||||
Comparable net sales growth | 4% | 2% | 6% | -1% | |||||||||
Adjusted EBITDA1 | 119.2 | 127.2 | -6% | 358.0 | 356.3 | 0% | |||||||
Margin1 | 13.3% | 15.0% | 13.9% | 14.3% | |||||||||
EBITDA | 108.0 | 120.1 | -10% | 337.1 | 363.2 | -7% | |||||||
Adjusted EBIT2 | 76.3 | 85.5 | -11% | 233.1 | 229.2 | 2% | |||||||
Margin2 | 8.5% | 10.1% | 9.1% | 9.2% | |||||||||
EBIT | 64.9 | 64.7 | 0% | 211.5 | 217.4 | -3% | |||||||
Adjusted EPS3 | 0.51 | 0.56 | -10% | 1.53 | 1.46 | 4% | |||||||
EPS, EUR | 0.41 | 0.43 | -6% | 1.35 | 1.40 | -3% | |||||||
Adjusted ROI2 | 11.5% | 11.9% | |||||||||||
Adjusted ROE3 | 15.1% | 14.9% | |||||||||||
ROI | 9.7% | 11.3% | |||||||||||
ROE | 12.4% | 14.3% | |||||||||||
Capital expenditure | 62.3 | 40.6 | 54% | 147.2 | 120.3 | 22% | |||||||
Free Cash Flow | -9.9 | 103.7 | <-100% | 27.5 | 149.6 | -82% | |||||||
1 Excluding IAC of | -11.2 | -7.1 | -21.0 | 6.8 | |||||||||
2 Excluding IAC of | -11.4 | -20.9 | -21.6 | -11.8 | |||||||||
3 Excluding IAC of | -10.4 | -13.8 | -18.2 | -6.8 |
Unless otherwise stated, all comparisons in this report are compared to the corresponding period in 2020. 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
”Huhtamaki delivered a solid third quarter in the face of a challenging environment, demonstrating the resilience of our diversified product portfolio. Demand for our products improved during the quarter, supported by the continued recovery of on-the-go consumption. We continued to focus on mitigating the inflationary environment, managing the availability of raw materials and addressing the continued impact of COVID-19.
During the third quarter of 2021, our net sales increased by 6% with a comparable sales growth of 4%. All our business segments contributed to our solid growth, particularly visible in emerging markets. At the Group level, comparable net sales growth from the beginning of the year was 6% compared to the previous year, with a double-digit growth in Foodservice Europe-Asia-Oceania with Q3 segment sales returning to pre-pandemic levels. While the adjusted EBIT margin in the third quarter decreased driven by input costs, the year-to-date margin was 9.1%, reflecting our operational performance and ability to manage inflation impact.
We have continued to execute on our strategic priorities, and I am pleased to see how we are making progress on our sustainability, innovation and competitiveness initiatives. During the quarter Huhtamaki’s climate targets were approved and validated by the globally recognized Science Based Targets initiative (SBTi). In July we launched Push Tab® paper, an industry-first sustainable renewable paper-based blister solution for the global healthcare industry. We also launched next generation tube laminates with renewable content for use in cosmetics and food sectors.
During the third quarter we completed the acquisition of Elif, a major supplier of sustainable flexible packaging to global FMCG brand owners, operating out of
Financial review Q3 2021
Net sales by business segment
EUR million | Q3 2021 | Q3 2020 | Change | |||
Foodservice | 244.6 | 230.8 | 6% | |||
294.3 | 282.6 | 4% | ||||
283.9 | 266.0 | 7% | ||||
83.3 | 72.2 | 15% | ||||
Elimination of internal sales | -9.8 | -4.3 | ||||
Group | 896.3 | 847.3 | 6% |
Comparable net sales growth by business segment
Q3 2021 | Q2 2021 | Q1 2021 | Q4 2020 | Q3 2020 | ||||
Foodservice | 2% | 40% | -2% | -7% | -1% | |||
5% | 9% | -2% | -2% | 4% | ||||
7% | 6% | 0% | -0% | 1% | ||||
2% | 1% | 4% | 8% | 7% | ||||
Group | 4% | 14% | -0% | -2% | 2% |
The Group’s net sales increased 6% to EUR 896 million (EUR 847 million) during the quarter. Comparable net sales growth was 4%. Net sales growth was supported by the continued recovery in demand for foodservice packaging globally. Growth in retail tableware in
Adjusted EBIT by business segment
Items affecting comparability | |||||||||||
EUR million | Q3 2021 | Q3 2020 | Change | Q3 2021 | Q3 2020 | ||||||
Foodservice | 20.7 | 21.7 | -4% | -0.7 | -17.3 | ||||||
35.8 | 36.0 | -1% | -0.1 | -3.2 | |||||||
17.0 | 22.7 | -25% | -10.3 | -0.7 | |||||||
7.9 | 8.0 | -1% | -0.1 | -0.2 | |||||||
Other activities | -5.1 | -2.9 | -0.1 | 0.6 | |||||||
Group | 76.3 | 85.5 | -11% | -11.4 | -20.9 |
Adjusted EBIT margin by business segment
Q3 2021 | Q2 2021 | Q1 2021 | Q4 2020 | Q3 2020 | ||||
Foodservice | 8.5% | 8.4% | 8.5% | 7.3% | 9.4% | |||
12.2% | 13.0% | 12.2% | 11.8% | 12.7% | ||||
6.0% | 6.1% | 8.1% | 7.2% | 8.5% | ||||
9.5% | 10.3% | 12.1% | 14.8% | 11.1% | ||||
Group | 8.5% | 9.1% | 9.6% | 9.0% | 10.1% |
The Group’s adjusted EBIT decreased to EUR 76 million (EUR 86 million) and reported EBIT was
Adjusted EBIT excludes EUR -11.4 million (EUR -20.9 million) of items affecting comparability (IAC).
Adjusted EBIT and IAC
EUR million | Q3 2021 | Q3 2020 | |||
Adjusted EBIT | 76.3 | 85.5 | |||
Acquisitions | -6.9 | -0.2 | |||
Restructuring costs including write-downs of related assets | -4.5 | -21.2 | |||
Settlement and legal fees of disputes | -0.0 | - | |||
Property damage incidents | 0.0 | - | |||
One-time gain from acquisition of Laminor | - | 0.5 | |||
EBIT | 64.9 | 64.7 |
Net financial expenses were
Adjusted profit and IAC
EUR million | Q3 2021 | Q3 2020 | |||
Adjusted profit for the period attributable to equity holders of the parent company | 52.7 | 58.7 | |||
IAC in EBIT | -11.4 | -20.9 | |||
IAC in Financial items | -2.1 | 3.0 | |||
Taxes relating to IAC | 3.2 | 4.0 | |||
Profit for the period attributable to equity holders of the parent company | 42.4 | 44.9 |
Financial review Q1-Q3 2021
Net sales by business segment
EUR million | Q1-Q3 2021 | Q1-Q3 2020 | Change | |||
Foodservice | 687.8 | 615.6 | 12% | |||
845.6 | 864.9 | -2% | ||||
821.7 | 800.0 | 3% | ||||
242.2 | 222.5 | 9% | ||||
Elimination of internal sales | -21.9 | -14.0 | ||||
Group | 2,575.3 | 2,489.0 | 3% |
Comparable net sales growth by business segment
Q1-Q3 2021 | Q1-Q3 2020 | Q1-Q3 2019 | ||||
Foodservice | 11% | -11% | 4% | |||
4% | 2% | 11% | ||||
4% | 2% | 3% | ||||
2% | 9% | 6% | ||||
Group | 6% | -1% | 6% |
The Group’s net sales increased 3% to
Adjusted EBIT by business segment
Items affecting comparability | |||||||||||
EUR million | Q1-Q3 2021 | Q1-Q3 2020 | Change | Q1-Q3 2021 | Q1-Q3 2020 | ||||||
Foodservice | 58.3 | 45.3 | 29% | -6.4 | -19.4 | ||||||
105.2 | 104.4 | 1% | -0.7 | -6.6 | |||||||
55.3 | 62.7 | -12% | -13.0 | -5.7 | |||||||
25.7 | 24.8 | 4% | -0.7 | -1.7 | |||||||
Other activities | -11.3 | -7.9 | -0.9 | 21.5 | |||||||
Group | 233.1 | 229.2 | 2% | -21.6 | -11.8 |
Adjusted EBIT margin by business segment
Q1-Q3 2021 | Q1-Q3 2020 | Q1-Q3 2019 | ||||
Foodservice | 8.5% | 7.4% | 9.1% | |||
12.4% | 12.1% | 9.2% | ||||
6.7% | 7.8% | 8.4% | ||||
10.6% | 11.1% | 9.9% | ||||
Group Total | 9.1% | 9.2% | 8.7% |
The Group’s adjusted EBIT increased to EUR 233 million (EUR 229 million) and reported EBIT was
Adjusted EBIT excludes EUR -21.6 million (EUR -11.8 million) of items affecting comparability (IAC).
Adjusted EBIT and IAC
EUR million | Q1-Q3 2021 | Q1-Q3 2020 | |||
Adjusted EBIT | 233.1 | 229.2 | |||
Acquisitions | -8.5 | -0.7 | |||
Restructuring costs including write-downs of related assets | -12.2 | -33.6 | |||
Settlement and legal fees of disputes | -0.5 | - | |||
Property damage incidents | -0.5 | - | |||
One-time gain from acquisition of Laminor | - | 22.4 | |||
EBIT | 211.5 | 217.4 |
Net financial expenses were
Adjusted profit and IAC
EUR million | Q1-Q3 2021 | Q1-Q3 2020 | |||
Adjusted profit for the period attributable to equity holders of the parent company | 159.3 | 152.6 | |||
IAC in EBIT | -21.6 | -11.8 | |||
IAC in Financial items | -2.1 | 3.0 | |||
Taxes relating to IAC | 5.6 | 2.0 | |||
Profit for the period attributable to equity holders of the parent company | 141.0 | 145.8 |
Acquisitions and divestments
On
On
Outlook for 2021 (unchanged)
The Group’s trading conditions are expected to improve compared to 2020, however with continued volatility in the operating environment. Huhtamaki's diversified product portfolio provides resilience and the Group’s good financial position enables addressing profitable growth opportunities.
Teleconference
Huhtamaki will arrange a combined audiocast and teleconference on
https://huhtamaki.videosync.fi/2021-q3-results
If you wish to ask questions, please dial one of the following numbers 5-10 minutes prior to the call start:
US: +1 631 913 14 22
Confirmation code for the call is 85239739#
Financial reporting in 2022
In 2022, Huhtamaki will publish financial information as follows:
Results 2021 February 10
Interim Report, January 1 - March 31, 2022 April 27
Half-yearly Report, January 1 - June 30, 2022
Interim Report, January 1 - September 30, 2022
Annual Accounts 2021 will be published on the week commencing
Huhtamäki Oyj’s Annual General Meeting is planned to be held on
This is a summary of Huhtamäki Oyj's Interim Report
For further information, please contact:
HUHTAMÄKI OYJ
About Huhtamaki
Huhtamaki is a key global provider of sustainable packaging solutions for consumers around the world, enabling wellbeing and convenience. Our innovative products protect on-the-go and on-the-shelf food and beverages, ensuring hygiene and safety, and help prevent food waste. We embed sustainability in everything we do. We are committed to achieving carbon neutral production and designing all our products to be recyclable, compostable or reusable by 2030.
We are a participant in the
With 100 years of history and a strong Nordic heritage we operate in 36 countries and 84 sites around the world. Our values Care Dare Deliver guide our decisions and help our team of 19,400 employees make a difference where it matters. Our 2020 net sales totaled
Attachment
- Huhtamäki Oyj Interim Report Q3 2021
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