Mayr-Melnhof Karton AG (MM) defies economic challenges in 2024. While the packaging divisions deliver solid results, the Board & Paper division remains burdened by low prices.
Mayr-Melnhof Karton AG (MM) was able to hold its own in 2024 despite persistently weak consumption and intense competition. While the MM Food & Premium Packaging Division showed a stable performance thanks to productivity increases and cost reductions, MM Pharma & Healthcare Packaging was under pressure from weaker demand and new machine start-ups.
The Board & Paper division was able to increase its sales volume, but was burdened by falling prices and higher raw material costs. Nevertheless, the company kept its earnings situation stable through strategic measures.
Key financial figures 2024
- Turnover4.08 billion (-2.0 % compared to 2023)
- Adjusted EBITDA418.5 million (-7.0 %)
- Adjusted EBITDA margin10.3 % (2023: 10.8 %)
- Adjusted operating result190.0 million (-17.1 %)
- Net income for the year110.5 million (+24.1 %)
- DividendIncrease of 20 % to € 1.80 per share
Measures to increase yield
In order to meet the economic challenges, MM is relying on a Profit & Cash Protection Programme, which includes:
- Reduction in working capital
- Targeted investment cuts
- Cost efficiency measures to strengthen competitiveness
Focus on sustainability
A significant step forward is the Reduction of CO₂ emissions by 35 % compared to the previous year. This was due to increased use of renewable energies and improved energy efficiency measures achieved.
Development in the business divisions
MM Food & Premium Packaging
- Stable demand in the food and cosmetics sectors
- Production volume: 3.1 billion m² (+2.5 %)
- Operating result: € 179.4 million (-16.5 %)
- Adjusted operating margin: 10.5 %
MM Pharma & Healthcare Packaging
- Decline in demand for pharmaceutical packaging
- Operating result: € 29.8 million (-12.5 %)
- Production volume: 918 million m² (-4.2 %)
MM Board & Paper
- Sales volume increased by 16.7 % to 3.15 million tonnes
- Price declines lead to negative impact on earnings
- Adjusted operating result: € -19.2 million
Outlook 2025
For 2025, MM expects a Persistently challenging market situation, however, is planning to Innovations, substitution of plastic packaging and efficiency improvements strengthen its competitive position.
A comprehensive Fit-for-Future„ efficiency enhancement programme“ is being rolled out in order to improve profitability. In addition, investments of around 300 million € planned for renewable energies and competitiveness.
Source: Mayr-Melnhof Karton AG
