Huhtamaki Oyj · OMXHEX:HUH1V
Huhtamaki Oyj — Q3 2024 Earnings Presentation
26 slides from Huhtamaki Oyj's earnings presentation, Oct 24, 2024
Slide 1: Solid profitability in a gradually improved market
Solid profitability in a gradually improved market Interim Report Q3 2024 Charles Héaulmé President and CEO Thomas Geust CFO
Slide 2: Q3 2024: Solid profitability in a gradually improved market
Q3 2024: Solid profitability in a gradually improved market Market trends − Market conditions improved, with differences between geographies and categories − Improvement in on-the-shelf categories (particularly egg packaging), while on-the-go categories remained subdued − Market environment still im
Slide 3: Efficiency program contributes to profitability improvement
Efficiency program contributes to profitability improvement Program targets MEUR 100 savings in 2024-26 Savings program delivers as expected Footprint optimization Efficiency program leading to savings of appr. By the end of Q3 2024, the program has generated savings Structural cost EUR 100 million
Slide 4: Business performance
01 Business performance 4 October 24, 2024 Interim Report Q3 2024
Slide 5: Q3 2024: Comparable net sales supported by volume growth
Q3 2024: Comparable net sales supported by volume growth Development of net sales in Q3 2024 (EUR million) Net sales decreased 1% in Q3 2024 • Flat comparable net sales growth 2 0 0 -13 (-4% in emerging markets). Slight growth in volumes, pricing down 1,037 1,026 • 0% from acquisitions and divestmen
Slide 6: Q1-Q3 2024: Pricing weighing on comparable net sales development
Q1-Q3 2024: Pricing weighing on comparable net sales development Development of net sales in Q1-Q3 2024 Net sales decreased 2% in Q1-Q3 2024 (EUR million) • Comparable net sales growth -1% (-3 % in emerging markets). Volumes -33 0 0 -35 close to the previous year’s level, pricing impact slightly neg
Slide 7: Comparable net sales trend improving
Comparable net sales trend improving Q1- Q1- Long-term Comparable net sales growth Q3 23 Q4 23 Q1 24 Q2 24 Q3 24 Q3 23 Q3 24 ambitions Foodservice E-A-O -3% -5% -5% -6% -7% 4% -6% 4-5% North America 1% 4% -3% -2% 3% 1% -0% 5-6% Flexible Packaging -11% -9% -1% 2% -0% -9% 0% 6-7% Fiber Packaging 4% 2%
Slide 8: Adjusted EBIT growth continued
Adjusted EBIT growth continued MEUR Q3 24 Q3 23 Change Q1-Q3 24 Q1-Q3 23 Change Net sales 1,026.2 1,037.2 -1% 3,067.6 3,136.0 -2% Adjusted EBIT1 102.4 100.3 2% 306.7 285.1 8% Margin 10.0% 9.7% 10.0% 9.1% Adjusted EPS, EUR2 0.63 0.57 9% 1.80 1.64 10% Capital expenditure 49.4 69.7 -29% 134.1 203.9 -34
Slide 9: Business segment review
02 Business segment review 9 October 24, 2024 Interim Report Q3 2024
Slide 10: Foodservice E-A-O: Consumption remained soft, affected by high consumer prices
Foodservice E-A-O: Consumption remained soft, affected by high consumer prices Key figures, MEUR Q3 24 Q3 23 Change Net sales and comparable growth (EUR million & %) Net sales 246.9 259.9 -5% 256 271 260 Comparable growth -7% -3% 241 252 247 250 1% -6% -14% -6% -7% -5% -6% Adjusted EBIT1 21.1 26.7 -
Slide 11: North America: Profitable growth continued
North America: Profitable growth continued Key figures, MEUR Q3 24 Q3 23 Change Net sales and comparable growth (EUR million & %) Net sales 359.3 348.4 3% 358 373 370 359 378 Comparable growth 3% 1% 344 348 -0% -1% 3% -1% 6% -4% -6% Adjusted EBIT1 49.7 45.9 8% 2023 Margin 13.8% 13.2% 2024 2% -3% 1%
Slide 12: Flexible Packaging: Continued margin improvement
Flexible Packaging: Continued margin improvement Key figures, MEUR Q3 24 Q3 23 Change Net sales and comparable growth (EUR million & %) Net sales 333.9 344.2 -3% Comparable growth -0% -11% 349 335 344 334 328 326 320 -8% -4% -16% -18% -3% -1% -13% 2023 Adjusted EBIT1 24.3 24.7 -2% Margin 7.3% 7.2% 2
Slide 13: Fiber Packaging: Sales supported by volumes growth
Fiber Packaging: Sales supported by volumes growth Key figures, MEUR Q3 24 Q3 23 Change Net sales and comparable growth (EUR million & %) Net sales 87.9 81.4 8% 87 92 88 89 Comparable growth 8% 4% 85 86 81 -10% 7% 8% 2% -4% -2% 1 -9% 2023 Adjusted EBIT 8.1 10.2 -20% Margin 9.2% 12.5% 2024 17% 1% 7%
Slide 14: Financial review
03 Financial review 14 October 24, 2024 Interim Report Q3 2024
Slide 15: Improved margins driving earnings
Improved margins driving earnings MEUR Q3 24 Q3 23 Change Q1-Q3 24 Q1-Q3 23 Change Q3 commentary: Net sales 1,026.2 1,037.2 -1% 3,067.6 3,136.0 -2% 1 • Reported sales decreased 1%, Adjusted EBITDA 153.1 149.0 3% 458.5 430.6 6% flat in comparable terms 1 Margin 14.9% 14.4% 14.9% 13.7% Adjusted EBIT 2
Slide 16: Minor negative currency impact
Minor negative currency impact Average Average Change in Change in Closing rates rate rate average closing Q1-Q3 23 Q1-Q3 24 rate Q3 23 Q4 23 Q1 24 Q2 24 Q3 24 rate (YoY) USD 1.08 1.09 0% 1.05 1.11 1.08 1.07 1.12 -6% Foreign currency INR 89.24 90.66 -2 % 87.64 92.45 90.13 89.24 93.38 -7% translation
Slide 17: Net debt to adjusted EBITDA stable at 2.0
Net debt to adjusted EBITDA stable at 2.0 Net debt, net debt/adj. EBITDA and gearing Covenant level 3.75 • Net debt/Adj. EBITDA at 2.0 2.5 • At the end of Q3 2024: 2.4 2.3 Ambition 2.2 • Cash and cash equivalents 1,426 1,453 2.1 2.0 2.0 2–3 EUR 408 million 1,332 1,288 1,249 1,255 1,220 • Unused comm
Slide 18: Loan maturities
Loan maturities Debt maturity structure September 30, 2024 (EUR million) • Average maturity 2.3 years at the 800 end of Q3 2024 (2.4 at the end of 700 Q3 2023) 600 500 • EUR 125 million term loan was 400 extended in September 2024 with 300 a further year to May 2026 200 • EUR 100 million bond was re
Slide 19: EBITDA and capex development supporting cash flow
EBITDA and capex development supporting cash flow Free cash flow bridge (EUR million) Cash flow driven by: 444 416 • Higher reported EBITDA • Negative impact from change in 193 working capital 160 • Lower capex 75 29 0 7 Strong comparison period figures -15 in 2023 due to change in working -53 -42 -
Slide 20: Financial position improved
Financial position improved MEUR Sep 2024 Sep 2023 Total assets 4,824 4,829 • Working capital down yoy, but increased vs year-end Working capital 589 644 2023 due to higher Net debt 1,220 1,332 inventories Equity & non-controlling interest 1,952 1,945 • Net debt and gearing decreased Gearing 0.62 0.
Slide 21: Progress towards long-term financial ambitions
Progress towards long-term financial ambitions Long-term 2017 2018 2019 2020 2021 2022 2023 Q1-Q3 24 ambition Comparable net sales growth 3% 5% 6% -2% 7% 15% -2% -1% 5-6% Adjusted EBIT margin 9.0% 8.1% 8.6% 9.1% 8.8% 8.8% 9.4% 10.0% 10-12% Adj. ROI 13.6% 11.6% 12.3% 11.7% 11.3% 11.0% 11.2% 12.0% 13-
Slide 22: Looking forward
04 Looking forward 22 October 24, 2024 Interim Report Q3 2024
Slide 23: Outlook for 2024 and short-term risks and uncertainties
Outlook for 2024 and short-term risks and uncertainties Outlook for 2024 (unchanged) Short-term risks and uncertainties The Group’s trading conditions are expected to improve Decline in consumer demand, inflation in key cost items compared to 2023. Volatility in the operating (including raw material
Slide 24: Financial reporting in 2025
February 14, 2025 Results 2024 Financial Week commencing reporting March 10, 2025 in 2025 Annual Report 2024 April 24, 2025 Q1 Interim Report 24 October 24, 2024 Interim Report Q3 2024
Slide 25: Disclaimer
Disclaimer Information presented herein contains, or may be deemed to contain, forward-looking statements. These statements relate to future events or Huhtamäki Oyj’s or its affiliates’ (“Huhtamaki”) future financial performance, including, but not limited to, strategic plans, potential growth, expe
Slide 26: Thank you.
Thank you. Contact us at ir@huhtamaki.com