Mayr-Melnhof’s 2016 consolidated results benefit from MM Packaging as growth driver
Market saturation and overall economic uncertainty characterized the situation on the Europe-an consumer goods market in 2016, resulting in many consumer goods manufacturers continuing to optimize their product and plant portfolio. Accordingly, the general situation on the European folding carton market was characterized by strong competition and decreasing prices.
However, dynamics varied depending on the market segment and geographical location, thus proving to be an advantage for MM Packaging to produce for various consumer markets in a broad network of sites. Thereby, plant capacity could be utilized at a generally high level, with a still heterogeneous profit contribution by different sites.
Against this background, the primary focus of operating activities was on a continuous improvement of cost efficiency, safeguarding market shares and developing technological and geographical potentials. The latter clearly appeared in the increased investment program at the production sites in Iran and in Vietnam.
On the whole, MM Packaging succeeded in continuing its long-term course of growth in sales and profit in 2016. A major growth driver was the first full year inclusion of a leading French folding carton producer in the fields of pharmaceutical and luxury goods packaging acquired at the end of October 2015. Integration proceeded according to schedule and met expectations.
Tonnage processed reached 761,000 tons and was thus 4.4 % above the comparative value of the previous year (2015: 729,000 tons). In line with this, the number of printed sheets (sheet equivalent) could be increased by 8.8 % from 2,059.3 million to 2,240.1 million. The sheet equivalent per employee was 303 thousand (2015: 303 thousand).
Sales went up mainly acquisition-related by 9.3 % to EUR 1,352.6 million (2015: EUR 1,237.3 million). In geographic terms, 57 % related to Western Europe, 30 % to Eastern Europe and 13 % to business outside Europe (2015: 55 %; 32 %; 13 %), demonstrating a high degree of continuity.
Due to volume growth, assisted by a favourable product mix, operating profit rose to EUR 145.6 million and was thus 24.1 % higher than in the previous year (2015: EUR 117.3 million). The operating margin totalled 10.8 % (2015: 9.5 %).
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