Huhtamaki Oyj · OMXHEX:HUH1V
Huhtamaki Oyj — Q4 2024 Earnings Presentation
31 slides from Huhtamaki Oyj's earnings presentation, Feb 14, 2025
Slide 1: Solid year in a gradually improved market
Solid year in a gradually improved market Results 2024 Ralf K. Wunderlich President and CEO Thomas Geust CFO
Slide 2: Ralf K. Wunderlich appointed CEO of Huhtamaki as of Jan 15
Ralf K. Wunderlich appointed CEO of Huhtamaki as of Jan 15 • Born 1966, German citizen • Education: B.Sc. (Business Administration) • Main occupation: Senior Adviser, Independent Consultant and Operating Partner to private equity companies • Member of various Boards of both listed and privately owne
Slide 3: Separating Fiber Packaging and Foodservice E-A-O; Sara Engber appointed President
Separating Fiber Packaging and Foodservice E-A-O Sara Engber appointed President, Fiber Packaging Fiber Foodservice separated into two distinct Sara Engber appointed President, Fiber Packaging business segments • Aiming to increase speed of execution and to empower • Appointed President, the teams t
Slide 4: Solid year in a gradually improved market
Q4 2024 Solid year in a gradually improved market Market trends − Gradual market improvement continued, partly supported by customers’ promotional activities − Market environment still impacted by the inflation pressure and the boycotts on some customers due to the conflict in the Middle East − Raw
Slide 5: Efficiency program contributed significantly to profitability improvement
Efficiency program contributed significantly to profitability improvement Original program timeline, targets and costs Progress and updated timeline Sourcing Direct and Efficiency program launched in November 2023, leading to By the end of 2024, the program has generated EUR 76 indirect spend saving
Slide 6: Sustainability Dashboard – Good progress towards our 2030 targets
Sustainability Dashboard – Good progress towards our 2030 targets 6 February 14, 2025 Results 2024
Slide 7: Stepping up our sustainability communication with a results call on March 24
Stepping up our sustainability communication with a results call on March 24 • As we aim to improve our sustainability communications, we are launching a new concept of an annual sustainability results call • Call hosted by Salla Ahonen, Executive Vice President, Sustainability and Communications •
Slide 8: Business performance
01 Business performance 8 February 14, 2025 Results 2024
Slide 9: Q4 2024: Comparable net sales supported by volume growth
Q4 2024: Comparable net sales supported by volume growth Development of net sales in Q4 2024 Net sales increased 2% in Q4 2024 (EUR million) • Comparable net sales +3% 28 No impact No impact -2 (-0% in emerging markets). Sales volumes growing, pricing flat • 0% from acquisitions and 1,033 1,059 dive
Slide 10: 2024: Pricing weighing on comparable net sales development, volumes slightly positive
2024: Pricing weighing on comparable net sales development, volumes slightly positive Development of net sales in Q1-Q4 2024 Net sales decreased 1% in 2024 (EUR million) • Comparable net sales growth flat -5 No impact No impact -37 (-2% in emerging markets). Slightly positive sales volumes, pricing
Slide 11: Comparable net sales trend improving
Comparable net sales trend improving Long-term Comparable net sales growth Q4 23 Q1 24 Q2 24 Q3 24 Q4 24 2023 2024 ambitions Foodservice E-A-O -5% -5% -6% -7% -1% 2% -5% 4-5% North America 4% -3% -2% 3% 2% 2% 0% 5-6% Flexible Packaging -9% -1% 2% -0% 5% -9% 1% 6-7% Fiber Packaging 2% 1% 3% 8% 12% 7%
Slide 12: EBIT margin continued at double-digit level in Q4 and 2024
EBIT margin continued at double-digit level in Q4 and 2024 MEUR Q4 24 Q4 23 Change 2024 2023 Change Net sales 1,058.7 1,032.9 2% 4,126.3 4,168.9 -1% 1 Adjusted EBIT 110.3 107.5 3% 416.9 392.6 6% Margin 10.4% 10.4% 10.1% 9.4% Adjusted EPS, EUR2 0.68 0.68 -1% 2.48 2.32 7% Capital expenditure 113.8 114
Slide 13: Business segment review
02 Business segment review 13 February 14, 2025 Results 2024
Slide 14: Foodservice E-A-O: Cautious signs of improvement
Foodservice E-A-O: Cautious signs of improvement Key figures, MEUR Q4 24 Q4 23 Change Net sales, growth and comparable growth (EUR million & %) Net sales 249.2 250.2 -0% Comparable growth -1% -5% 256 271 260 241 252 247 250 249 1% -6% -14% -6% -7% -5% -6% -0% Adjusted EBIT1 24.7 25.0 -1% 2023 Margin
Slide 15: North America: Continued strong performance
North America: Continued strong performance Key figures, MEUR Q4 24 Q4 23 Change Net sales, growth and comparable growth (EUR million & %) Net sales 386.5 378.1 2% Comparable growth 2% 4% 373 378 386 358 344 370 348 359 -0% -1% -1% 2% 2023 Adjusted EBIT 1 52.9 54.1 -2% 6% -4% -6% 3% 2024 Margin 13.7
Slide 16: Flexible Packaging: Profitability improved as demand continued to recover
Flexible Packaging: Profitability improved as demand continued to recover Key figures, MEUR Q4 24 Q4 23 Change Net sales, growth and comparable growth (EUR million & %) Net sales 327.5 319.8 2% Comparable growth 5% -9% 349 335 328 344 334 327 326 320 -8% -4% -16% -1% -18% -3% 2% Adjusted EBIT 1 27.4
Slide 17: Fiber Packaging: Strong rebound after the soft Q3 profitability level
Fiber Packaging: Strong rebound after the soft Q3 profitability level Key figures, MEUR Q4 24 Q4 23 Change Net sales, growth and comparable growth (EUR million & %) Net sales 98.5 88.8 11% Comparable growth 12% 2% 99 87 86 92 88 89 85 81 11% Adjusted EBIT1 15.0 9.7 55% -4% 7% 8% 2% 2023 -2% -10% -9%
Slide 18: Financial review
03 Financial review 18 February 14, 2025 Results 2024
Slide 19: Higher sales and improved profitability driving earnings
Higher sales and improved profitability driving earnings MEUR Q4 24 Q4 23 Change 2024 2023 Change Q4 commentary: Net sales 1,058.7 1,032.9 2% 4,126.3 4,168.9 -1% Adjusted EBITDA 1 163.7 159.5 3% 622.2 590.1 5% • Reported sales growth 2%, 1 comparable growth 3% Margin 15.5% 15.4% 15.1% 14.2% Adjusted
Slide 20: Currency impact turned neutral
Currency impact turned neutral Average Average Change in Change in Closing rates rate rate average closing 2023 2024 rate Q4 23 Q1 24 Q2 24 Q3 24 Q4 24 rate (YoY) USD 1.08 1.08 0% 1.11 1.08 1.07 1.12 1.04 6% Foreign currency INR 89.31 90.55 -1% 92.45 90.13 89.24 93.38 89.27 3% translation impact GBP
Slide 21: 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 Q4 2024: 2.4 2.3 Ambition 2.2 • Cash and cash equivalents 1,426 1,453 2.1 2.0 2.0 2.0 2–3 EUR 317 million 1,332 1,288 1,249 1,255 1,220 1,216 • U
Slide 22: Loan maturities
Loan maturities Debt maturity structure December 31, 2024 (EUR million) • Average maturity 3.1 years at the 600 end of 2024 (2.9 at the end of 500 2023) 400 • EUR 100 million bond was repaid in October 2024 with existing cash 300 200 • EUR 450 million, 5-year, multi- currency revolving credit facili
Slide 23: Cash flow behind the 2023 level, driven by the change in working capital
Cash flow behind the 2023 level, driven by the change in working capital Free cash flow bridge (EUR million) Cash flow supported by lower capex 596 621 Strong comparison period figures 321 in 2023 due to 216 • change in working capital, driven by 144 62 raw material prices 3 31 • proceeds from selli
Slide 24: Financial position continued to improve
Financial position continued to improve MEUR Dec 2024 Dec 2023 Total assets 4,894 4,665 • Working capital down Working capital 546 570 • Net debt and gearing decreased Net debt 1,216 1,288 Equity & non-controlling interest 2,124 1,925 • Adjusted ROI improved Gearing 0.57 0.67 Adjusted ROI1 12.1% 11.
Slide 25: Dividend proposal would mean 16th consecutive year of dividend growth
The Board of Directors’ dividend proposal would mean the 16th consecutive year of dividend growth 2024* 2023 Change Adjusted EPS 2.48 2.32 7% Dividend per 1.10 1.05 5% share 1.05 1.10 Payout ratio 44% 45% 0.94 1.00 0.89 0.92 0.80 0.84 0.73 0.60 0.66 0.56 0.57 0.44 0.46 Share price on 0.34 0.38 34.18
Slide 26: Progress towards long-term financial ambitions
Progress towards long-term financial ambitions Long-term 2017 2018 2019 2020 2021 2022 2023 2024 ambition Comparable net sales growth 3% 5% 6% -2% 7% 15% -2% -0% 5-6% Adjusted EBIT margin 9.0% 8.1% 8.6% 9.1% 8.8% 8.8% 9.4% 10.1% 10-12% Adj. ROI 13.6% 11.6% 12.3% 11.7% 11.3% 11.0% 11.2% 12.1% 13-15%
Slide 27: Looking forward
04 Looking forward 27 February 14, 2025 Results 2024
Slide 28: Outlook for 2025 and short-term risks and uncertainties
Outlook for 2025 and short-term risks and uncertainties Outlook for 2025 Short-term risks and uncertainties The Group’s trading conditions are expected to remain Decline in consumer demand, inflation in key cost items relatively stable during 2025. The good financial position (including raw material
Slide 29: Upcoming events
Week commencing March 10, 2025 Annual Report 2024 Upcoming March 24, 2025 events Sustainability results 2024 call April 24, 2025 Q1 Interim Report AGM 29 February 14, 2025 Results 2024 29 February 14, 2025 Results 2024
Slide 30: 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 31: Thank you.
Thank you. Contact us at ir@huhtamaki.com