Mayr-Melnhof Karton Ag (MNHFF) Q2 2025 Earnings Call

Investor webinar replay

Replay transcript excerpt

Welcome everyone to the announcement of our 2025 half-year results. I am really pleased to report a 29% increase in adjusted operating profit in the first half. And this strong performance was primarily driven by our board and paper division, which delivered a significant earnings uplift due to our profit improvement program Fit for Future at two major mills in a difficult market. And in light of this success, we have now launched the Fit for Future program on a group-wide scale to deliver a structural and sustainable improvement in earnings quality. And we are confident that this programme will enable us to achieve structural sustainable profit improvements of over €150 million by 2027 compared to the 24 excluding TAN baseline and excluding market-related fluctuations. The sale of TAN Group was completed on schedule in the second quarter, resulting in a preliminary one-off income of €127 million. And strategically, this move allows us to concentrate on our core business of consumer packaging, having divested the tipping paper business at a time of record profitability. Now, let's come to the performance of our divisions. Food and premium packaging continue to deliver solid returns driven by service excellence and innovation. And following the deconsolidation of TAN in early June, we also report figures excluding TAN for your analytics. A main goal is now to sharpen our competitive edge for more organic growth and higher profitability. Pharma and healthcare packaging experienced mixed market dynamics. The US market showed growth. However, Europe showed a slight decline. Nevertheless, the division successfully offset the lack of volume growth through productivity gains, as reflected by the margin improvement in Q2. And in addition, a footprint optimization in southwes...