Q1 2025 Mayr-Melnhof Karton AG Earnings Call Transcript
Key Points
- The company's results improved compared to the previous year, driven by the boarding paper division and strong performance in food and premium packaging.
- The internal profit improvement program significantly contributed to the improved operating profit in the board and paper division.
- Mayr-Melnhof Karton AG (WBO:MMK) has successfully managed its costs, with energy, wood, and paper for recycling costs remaining stable.
- The company has taken proactive steps to address overcapacity issues by closing machines in Austria, Slovenia, and Poland.
- The divestment of TANN Group is proceeding well and is expected to strengthen the company's balance sheet.
- Pharma packaging profits were below last year's level due to smaller one-off effects and delayed rollout of weight reduction products.
- Market demand remains soft, posing challenges for the company's growth.
- Overcapacity in the European cardboard industry, particularly in virgin fiber board, remains a significant issue.
- The company's gearing increased and cash decreased in the first quarter compared to the previous year.
- Potential US tariffs could impact the company's plans to expand exports to the US, adding uncertainty to future growth.
Welcome ladies and gentlemen to the audio webcast interview on the MM Group's interim results for the first quarter of 2025. I'm pleased to have the company's CEO, Peter Oswald, with me for some firsthand insights.
Questions & Answers
Peter, could you please share with us your reflections on the start of the year '25 for the MM group?
Yes, I am pleased that results were nicely up compared to the start of last year, but still not at an acceptable level. The improvement was mainly driven by our boarding paper division. Also, food and premium packaging, increased profits and showed, again, a strong performance.
Pharma packaging came in somewhat below last year's level due to smaller one-off effects and delayed rollout of weight reduction products. Overall, market demand remains soft.
What were the drivers of the significantly improved board
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