Full Year 2024 Mayr-Melnhof Karton AG Earnings Call Transcript
Key Points
- Mayr-Melnhof Karton AG (WBO:MMK) successfully navigated a challenging year by focusing on self-help and leveraging a 'stronger together' mindset.
- The Food and Premium Packaging division achieved market-leading returns through productivity increases, cost reductions, and superior service.
- The company made significant strides in sustainability, reducing absolute CO2 emissions by 35% year on year and achieving a AAA- leadership rating from CDP.
- A dividend increase of 20% to EUR1.80 per share was proposed, reflecting the company's net profit increase.
- The company successfully reduced net debt from EUR1.3 billion to below EUR1.1 billion, improving financial stability.
- The industry faced severe challenges, including reduced consumer spending, rising costs, and geopolitical uncertainties.
- The Pharma and Healthcare Packaging division experienced a 4.2% decline in volumes due to weaker demand and new machine startups.
- The European cartonboard market faced high overcapacities, weak demand, and higher imports, resulting in a small adjusted operating loss.
- Group sales decreased by 2% to EUR4.1 billion, reflecting the challenging market conditions.
- Despite cost-saving measures, the adjusted operating margin for MM Board and Paper remained constant at 1% due to lower average prices and higher costs.
Welcome, everyone, to the announcement of our 2024 annual results. As we look back to the past year, we recognize that our industry has continued its most severe and prolonged crisis ever. Since autumn '22, we have faced strong headwinds, including reduced consumer spending on daily goods; a slower shift from plastic to cotton due to cost differences, rising expenses for energy, raw materials, and personnel; overcapacities; and ongoing geopolitical uncertainties.
And despite these challenges, MM navigated the year '24 successfully and made significant progress by focusing on self-help and leveraging our stronger together mindset. We have reinforced our quality and service leadership. Our Food and Premium Packaging division showed, again, market leading returns based on productivity increases, cost reductions, and superior service, even though profitability did not quite reach the previous year record level.
Customers rewarded our strong performance with higher volumes in a flat market. Our MM Pharma
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