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Huhtamaki Oyj
OMXH:HUH1V

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Huhtamaki Oyj
OMXH:HUH1V
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Price: 29.3 EUR -1.35% Market Closed
Market Cap: 3.2B EUR

Huhtamaki Oyj
Investor Relations

In the heart of Finland lies Huhtamaki Oyj, a company that has unwrapped the potential of packaging innovation since its founding in 1920. Originally a confectionery manufacturer, Huhtamaki pivoted over the decades into becoming a global powerhouse in the food packaging industry. This evolution was driven by a keen eye for sustainable development and consumer trends, particularly in the realm of environmentally conscious solutions. Today, the company operates across more than 30 countries, where it funnels creativity and technology into crafting flexible and sustainable packaging options. These range from fiber-based packaging to flexible packaging and food service essentials, such as cups, plates, and containers, all meticulously designed to ensure the safe delivery of food products while minimizing environmental impact.

Huhtamaki’s financial engine runs on a well-oiled B2B model. By serving large multinational food and beverage brands, Huhtamaki leverages economies of scale to manufacture and supply billions of packaging units each year. Their revenues are predominantly generated through long-term contracts and partnerships with these major corporations, allowing them to not only secure consistent income but also invest in research and development. This continuous investment enables them to stay at the forefront of sustainable packaging technology, consistently appealing to companies looking to improve their environmental footprint. Innovation, paired with an adept understanding of consumer and regulatory demands for sustainability, positions Huhtamaki as a front-runner in the global shift towards eco-friendly packaging solutions, a shift that is not just a trend but an enduring transformation in industry standards.

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Last Earnings Call
Fiscal Period
Q1 2025
Call Date
Apr 24, 2025
AI Summary
Q1 2025

Stable Results: Huhtamaki delivered financial performance in line with the prior year despite increased market volatility, with net sales, adjusted EBIT, and EBIT margin all matching last year's levels.

Efficiency Progress: The company’s cost savings program reached EUR 87 million in total savings against EUR 25 million in costs, tracking ahead of schedule towards its EUR 100 million target.

Segment Trends: Foodservice and North America saw soft demand and slight declines, while Fiber Packaging stood out with strong 10% comparable growth and a 40% EBIT improvement.

Acquisition: Huhtamaki acquired Zellwin Farms, a small North American egg packaging company with $20 million in sales, expected to be accretive in year one.

Raw Materials: Input costs were stable in most segments, except for Fiber Packaging where rising costs were successfully passed on to customers.

Guidance & Outlook: Management expects seasonality and new capacity to support stronger results in later quarters, with no change to outlook and risks except some new tariff-related uncertainty.

Capital Allocation: Focus remains on dividends and bolt-on M&A in high-yielding segments, with share repurchases not prioritized at this time.

Key Financials
Comparable Growth (Group)
-2%
Adjusted EBIT
€98.5M
EBIT Margin
9.8%
Adjusted EPS
€0.59
Foodservice Comparable Growth
-4%
Foodservice EBIT Margin
8.5%
North America Comparable Growth
-3%
North America EBIT Margin
11.7%
North America Adjusted EBIT
€40.5M
Flexible Packaging Comparable Growth
-2%
Flexible Packaging Adjusted EBIT
€26.6M
Flexible Packaging EBIT Margin
8.1%
Fiber Packaging Comparable Growth
10%
Fiber Packaging Adjusted EBIT
€12.3M
Fiber Packaging EBIT Margin
12.8%
Efficiency Savings
€87M
Efficiency Savings Cost to Achieve
€25M
Net Debt to EBITDA
2.0
Gearing
0.59
Unused Committed Facilities
€404M
Net Debt
€1,252M
Average Loan Maturity
2.9 years
Return on Investment
12%
Dividend Yield
3%
Dividend CAGR
8%
Earnings Call Recording
Other Earnings Calls

Management

Mr. Charles Heaulme B.B.A.
CEO & President
No Bio Available
Mr. Thomas Geust M.Sc. (Econ)
Chief Financial Officer
No Bio Available
Mr. Kristian Tammela
Vice President of Investor Relations
No Bio Available
Mr. Sami Pauni LL.M.
Executive VP of Corporate Affairs & Legal and Group General Counsel
No Bio Available
Ms. Salla Ahonen
Executive Vice President of Sustainability & Communications
No Bio Available
Mr. Ingolf Thom
Executive Vice President of Human Resources & Safety
No Bio Available
Ms. Katariina Hietaranta
Head of External Communications
No Bio Available
Ms. Ann O'Hara
President of North America
No Bio Available
Mr. Marco Hilty Ph.D.
President of Flexible Packaging
No Bio Available
Mr. Fredrik Davidsson
President of Fiber Foodservice Europe-Asia-Oceania
No Bio Available

Contacts

Address
ETELA-SUOMEN
Espoo
Revontulenkuja 1
Contacts
+358106867000.0
www.huhtamaki.com