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Huhtamäki Oyj's Results January 1 - December 31, 2012: Strong growth in net sales and earnings


February 13, 2013 - London

HUHTAMÄKI OYJ STOCK EXCHANGE RELEASE 13.2.2013 AT 08:30 

- Robust 14% net sales growth, driven by acquisitions
- Earnings per share grew 39% to a new record, EUR 1.21
- Strong organic growth in the North America and the Molded Fiber business segments
- Significant earnings improvement within the Foodservice Europe-Asia-Oceania business segment
- The Board of Directors proposes a dividend of EUR 0.56 (EUR 0.46 for 2011) per share

Key figures

EUR million 2012 2011 Q4 2012 Q4 2011
Net sales 2,335.0 2,043.6 578.7 521.8
EBIT* 161.6 127.6 35.2 27.6
EBIT margin*,% 6.9 6.2 6.1 5.3
EPS*, EUR 1.21 0.87 0.25 0.18
ROI, % 11.9 9.8
ROE, % 15.0 11.0
Free cash flow 102.6 64.9 45.7 63.8
Net debt 405.6 393.4
Gearing 0.46 0.49

* Excluding EUR -7.0 million (net amount) non-recurring items (NRI) in FY 2011 and EUR 0.8 million (net amount) in Q4 2011.

CEO Jukka Moisio:
"2012 was a good year for Huhtamaki. The Group reports record earnings per share at EUR 1.21 and the Board of Directors proposes a dividend of EUR 0.56 per share. Our main target of improving profitability was achieved and implementation of our quality growth strategy was continued successfully.While the global economy did not grow particularly strongly in 2012, the Group's net sales progressed 14% with all key financial ratios improving. We are pleased to report the success of 2012 and look confidently into 2013 when we will implement additional steps of quality growth. Huhtamaki team did well in 2012 and aims to do even better in 2013."

Overview
The Group's trading conditions remained relatively stable throughout 2012 despite general economic uncertainty. Demand for consumer packaging was healthy during the first half of the year, but weakened during the second half of the year. Customer cautiousness was evident throughout the year, with increased focus on keeping order sizes small and stocks low. Raw material price levels stabilized compared to 2011.

The Group's net sales grew by a healthy 14% in 2012 compared to the previous year, led by the impact of acquisitions completed in 2011 and 2012. Full year net sales were EUR 2,335 million (EUR 2,044 million). Reported net sales growth was EUR 291 million, of which the units acquired accounted for EUR 165 million. The Group's organic growth was 3% measured in constant exchange rates. Organic growth was strongest in the North America and Molded Fiber business segments. Foreign currency movements had a favorable impact on the Group's net sales development.

The Group's earnings before interest and taxes (EBIT) also grew significantly in 2012. EBIT for the year was EUR 162 million whereas in 2011 EBIT was EUR 121 million (including a net non-recurring charge of EUR 7 million). Earnings development was strongest in the Foodservice Europe-Asia-Oceania business segment, mainly resulting from successful restructuring activities and contribution of the acquired units.

The Group's free cash flow development was solid and free cash flow for the full year was EUR 103 million (EUR 65 million). Return on investment (ROI) was 11.9% (9.8%) and return on equity (ROE) was 15.0% (11.0%).

The implementation of the Group's strategic direction focused on quality growth was continued during the year and three new strategic and growth enhancing acquisitions were completed. A major foodservice packaging supplier was acquired in Asia, a paper tableware manufacturer in the United States and a manufacturer of high-end labels in India.The Group continued the integration of the businesses acquired in 2011.

The closure of a Flexible Packaging manufacturing unit in New Zealand was finalized at the end of July.

Significant events after the reporting period
On January 31, 2013 Huhtamäki Oyj's subsidiary Huhtamaki, Inc. purchased a manufacturing facility in Batavia, Ohio, in the United States to set up a new state of the art manufacturing and distribution unit. With the purchase Huhtamaki continued its series of investments in expanding and strengthening its disposable product offering and capability in the United States. The total investment including the site purchase, improvements in infrastructure and machinery investments to set up capacity will be approximately USD 60 million (EUR 45 million). Majority of the investment will take place in 2013.

Outlook for 2013
The Group's trading conditions are expected to remain relatively stable during 2013. The good financial position and ability to generate a positive cash flow will enable the Group to further address profitable growth opportunities. Capital expenditure is expected to be above EUR 100 million. A significant part of the investments is due to the increases in foodservice disposables capabilities within the North America segment.

Dividend proposal
On December 31, 2012 Huhtamäki Oyj's non-restricted equity was EUR 830 million. The Board of Directors will propose to the Annual General Meeting that a dividend of EUR 0.56 (EUR 0.46) per share, in total EUR 57 million, be paid.

Annual General Meeting 2013
The Annual General Meeting of Shareholders will be held on Thursday, April 25, 2013 at 2 pm (Finnish time), at Kulttuuritalo (Helsinki Hall of Culture), Sturenkatu 4, in Helsinki, Finland.

Financial Reporting Schedule in 2013
Annual Accounts and Directors' Report for 2012 will be published during week 9 on the Company's website at www.huhtamaki.com.

Huhtamaki will publish the following interim reports during the course of the year:
- Interim Report January 1 - March 31, 2013         April 25, 2013
- Interim Report January 1 - June 30, 2013         July 19, 2013
- Interim Report January 1 - September 30, 2013     October 25, 2013

This is a summary of Huhtamaki's Results January 1 - December 31, 2012. The complete report is attached to this release and is also available at the company website at www.huhtamaki.com.

For further information, please contact:
Jukka Moisio, CEO, tel. +358 10 686 7801
Timo Salonen, CFO, tel. +358 10 686 7880 

HUHTAMÄKI OYJ
Group Communications

Huhtamaki Group is a leading manufacturer of consumer and specialty packaging with 2012 net sales totaling EUR 2.3 billion. Foodservice and consumer goods markets are served by approximately 14,200 people in 64 manufacturing units and several sales offices in 31 countries. The parent company, Huhtamäki Oyj, has its head office in Espoo, Finland and its share is quoted on NASDAQ OMX Helsinki Ltd. Additional information is available at www.huhtamaki.com.

 


Huhtamäki Oyj Results 2012



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Source: Huhtamäki Oyj via Thomson Reuters ONE

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