According to the company, the cost increases for raw materials in the past year were “historically unique”. The resulting pressure on the margins was gradually offset by price increases, which, however, could only be implemented with a time lag. With the purchase of the Kwidzyn board and paper mills in Poland and Kotkamills in Finland and the sale of smaller board plants, the company also underwent a major strategic change. The aim is to become more competitive and thus enable growth and more profitability.
Acquisitions boosted sales
The acquisitions boosted Mayr-Melnhof’s sales. Sales revenues increased by a good fifth (21.4 percent) to 3.07 billion euros in the previous year. The operating result also increased by 16.5 percent to 269.6 million euros. This included one-off expenses from the first-time consolidation of the plants in Kwidzyn in Poland and Kotkamills in Finland, which were acquired in the previous year, amounting to 26.3 million euros and restructuring expenses in the MM Packaging division of 20.1 million euros, income from the sale of the plants in Eerbeek and Baiersbronn from 46 .1 million euros compared to
Earnings before taxes, interest, depreciation and amortization (EBITDA) increased by 5.5 percent to 421 million euros. Before taxes, the profit was 224.5 million euros, which was 10.1 percent more than in the previous year.
Further price increases planned
For the current year 2022, the company is planning further price increases due to the sharp rise in input costs. A cardboard price increase is planned for the second quarter. However, demand and the order situation would be “in good shape”, according to the outlook. Management is now proposing a dividend of EUR 3.50 per share for 2021. For 2020, 3.20 euros per paper had been distributed.
Source: Nachrichten
