Huhtamaki Oyj · OMXHEX:HUH1V
Huhtamaki Oyj — Q1 2022 Earnings Presentation
26 slides from Huhtamaki Oyj's earnings presentation, Apr 27, 2022
Slide 1: Strong start to the year
Strong start to the year Interim Report Q1 2022 Charles Héaulmé President and CEO Thomas Geust CFO
Slide 2: Strong start to the year
Strong start to the year • Challenging environment – continued COVID-19 pandemic, high and broad-based inflation, challenges in raw material availability and disruption in global supply chains, the war in Ukraine • Strong net sales and adjusted EBIT growth – driven by positive impact of acquisitions
Slide 3: Our innovation recognized by sustainability awards
Our innovation recognized by sustainability awards McDonald’s Nescafe Garnier Sundae cup and lid Protect Proslim Men Shampoo Color Fully plant-based (100% renewable). The world’s first recyclable alu-foil free User-friendly two-sided flexible membrane Recyclable and compostable. Insulating instant c
Slide 4: Business performance
Business performance Huhtamaki
Slide 5: Q1 2022: Strong comparable net sales growth
Q1 2022: Strong comparable net sales growth Development of net sales in Q1 2022 Net sales increased 31% in Q1 2022 (EUR million) • Comparable net sales growth 19% 35 (19% in emerging markets) 63 • Volume growth in line with long-term 150 ambition 1,050 • 8% from acquisitions, mainly Elif 802 • 4% po
Slide 6: Continued recovery in foodservice, solid demand for food on-the-shelf and pricing drive strong growth
Continued recovery in foodservice, solid demand for food on-the- shelf and pricing drive strong growth in the quarter Long-term Comparable growth Q1 21 Q2 21 Q3 21 Q4 21 Q1 22 ambitions Foodservice E-A-O -2% 40% 2% 12% 18% 5-7% North America -2% 9% 5% 11% 24% 3-5% Flexible Packaging 0% 6% 7% 12% 18%
Slide 7: Strong EBIT growth
Strong EBIT growth MEUR Q1 22 Q1 21 Change Net sales 1,049.7 802.1 31% Adjusted EBIT1 97.5 77.0 27% Margin 9.3% 9.6% Adjusted EPS, EUR2 0.63 0.49 29% Capital expenditure 76.4 33.0 >100% • Strong net sales growth, both reported and comparable • Adjusted EBIT improved by growth in sales volumes, a fav
Slide 8: Business segment review
Business segment review Huhtamaki
Slide 9: Foodservice EAO: Continued recovery in demand
Foodservice EAO: Continued recovery in demand Key figures, MEUR Q1 22 Q1 21 Change Net sales and comparable growth (EUR million & %) Net sales 254.7 207.5 23% Comparable growth 18% -2% 255 245 254 236 207 2021 Adjusted EBIT1 25.6 17.6 45% Margin 10.0% 8.5% 2022 -2% 18% 40% 2% 12% Comp. Capital expen
Slide 10: North America: Strong growth and profitability
North America: Strong growth and profitability Key figures, MEUR Q1 22 Q1 21 Change Net sales and comparable growth (EUR million & %) Net sales 337.5 256.1 32% Comparable growth 24% -2% 337 297 315 293 Adjusted EBIT 1 38.8 31.2 25% 256 2021 Margin 11.5% 12.2% 2022 -2 % 24 % 9% 5% 11 % Comp. Capital
Slide 11: Flexible Packaging: Strong growth, supported by Elif acquisition and improved cost mitigation
Flexible Packaging: Strong growth, supported by Elif acquisition and improved cost mitigation Key figures, MEUR Q1 22 Q1 21 Change Net sales and comparable growth (EUR million & %) Net sales 377.7 267.1 41% 378 Comparable growth 18% 0% 345 267 273 282 Adjusted EBIT1 29.4 21.7 35% 2021 Margin 7.8% 8.
Slide 12: Fiber Packaging: Growth impacted by expected softening in demand for egg packaging
Fiber Packaging: Growth impacted by expected softening in demand for egg packaging Key figures, MEUR Q1 22 Q1 21 Change Net sales and comparable growth (EUR million & %) Net sales 90.9 78.6 16% 91 91 Comparable growth 8% 4% 80 83 79 1 2021 Adjusted EBIT 7.5 9.5 -21% Margin 8.2% 12.1% 2022 4% 8% 1% 2
Slide 13: Financial review
Financial review Huhtamaki
Slide 14: Solid adjusted EBIT margin
Solid adjusted EBIT margin MEUR Q1 22 Q1 21 Change Net sales 1,049.7 802.1 31% Adjusted EBITDA1 146.6 117.7 24% • Sales growth supported by all segments, Elif acquisition Margin 1 14.0% 14.7% contributed positively Adjusted EBIT2 97.5 77.0 27% 2 • Input costs continued to Margin 9.3% 9.6% increase;
Slide 15: Positive currency impact in Q1 2022 driven by strong USD
Positive currency impact in Q1 2022 driven by strong USD Average Average Change in Change in Closing rates rate rate average closing Q1 21 Q1 22 rate Q1 21 Q2 21 Q3 21 Q4 21 Q1 22 rate (YoY) (YoY) USD 1.21 1.12 7% 1.17 1.19 1.17 1.13 1.11 5% Foreign currency INR 87.95 84.42 4% 86.25 88.31 86.47 84.2
Slide 16: Net debt to adjusted EBITDA at a higher level after the Elif acquisition
Net debt to adjusted EBITDA at a higher level after the Elif acquisition Net debt, net debt/adj. EBITDA and gearing • Acquisition of Elif increased our Covenant level 3.75 leverage 3.1 • At the end of Q1 2022: 3.0 3.0 1,572 1,520 • Net debt/Adj. EBITDA at 3.0 1,404 Ambition • Gearing 0.92 1.9 1.9 2–
Slide 17: Loan maturities
Loan maturities Debt maturity structure March 31, 2022 (EUR million) 700 • MEUR 250 term loan facility agreed in early April. 2-year 600 agreement with a one-year 500 extension option at the discretion of the lenders 400 • Committed credit facilities at the 300 end of Q1 2022 • Average maturity 2.6
Slide 18: Free cash flow impacted by working capital and capital expenditure
Free cash flow impacted by working capital and capital expenditure Free cash flow bridge Cash flow impacted by: (EUR million) • Adjusted EBITDA increased significantly 145 115 • Large change in working capital mainly following increase in trade receivables and inventory 1 0 5 7 0 • Higher cash taxes
Slide 19: Stable financial position
Stable financial position MEUR Mar 2022 Mar 2021 • Total balance sheet impacted by Elif acquisition in Q3 2021 Total assets 4,810 3,745 • Operating working capital increased Operating working capital 812 571 by higher inventories Net debt 1,572 898 • Stable financial position remains Equity & non-co
Slide 20: Progress towards long-term financial ambitions
Progress towards long-term financial ambitions Long-term 2015 2016 2017 2018 2019 2020 2021 Q1 22 ambition Organic growth 4% 4% 3% 5% 6% -2% 7% 19% 5+% Adjusted EBIT margin 8.7% 9.4% 9.0% 8.1% 8.6% 9.1% 8.8% 9.3% 10+% Net debt/Adj. EBITDA 1.6 1.8 1.8 2.3 2.0 1.8 3.1 3.0 2-3 Dividend payout ratio 40%
Slide 21: Looking forward
Looking forward Huhtamaki
Slide 22: Outlook 2022 (unchanged)
Outlook 2022 (unchanged) The Group’s trading conditions are expected to improve compared to 2021, 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
Slide 23: Short-term risks and uncertainties
Short-term risks and uncertainties Significant and broad-based inflation in input costs (including raw materials, labor, distribution and energy), availability of raw materials as well as movements in currency rates are considered to be relevant short-term business risks and uncertainties in the Gro
Slide 24: Financial calendar 2022
Financial calendar 2022 July 21, 2022 October 21, 2022 Half-yearly Report 2022 Q3 2022 Interim Report 24 April 27, 2022 Q1 2022
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: For further information, please contact us
For further information, please contact us: ir@huhtamaki.com www.huhtamaki.com/investors April2022 Q1 26 27, 2022