DGAP-News: Mayr-Melnhof Karton AG: Results for the first quarter of 2019
15.05.2019 (www.4investors.de) -
DGAP-News: Mayr-Melnhof Karton AG / Key word(s): Quarter Results
Mayr-Melnhof Karton AG: Results for the first quarter of 2019
15.05.2019 / 08:00
The issuer is solely responsible for the content of this announcement.
* Significant increase in sales and EBITDA following acquisition of the Tann-Group
* High capacity utilization in both divisions
* Visibility of demand is shortening
In the first quarter of 2019, the Mayr-Melnhof Group was able to maintain its position well in a market environment that was stable but intensely competitive due to a lack of momentum. The income statement and balance sheet are affected by the initial consolidation of the Tann-Group.
Sales as well as profit for the period exceeded the comparative value of the previous year.
Both divisions reported overall high capacity utilization. While MM Packaging achieved a slight increase in result, MM Karton again reached the high level of the previous year with a robust price and volume development.
The substantial growth in sales and EBITDA largely results from the acquisition. Its inclusion into the Group and the MM Packaging division took effect as of January 15, 2019, under consideration of one-off effects relating to the initial consolidation from which no further profit impact is expected for the remaining financial year. Nevertheless, the EBITDA increased significantly.
The current situation on the markets is characterized by shorter visibility and increasing competitive intensity. Our focus remains on pursuing sound profit development through an attractive portfolio of products and consistent price and cost management.
GROUP KEY INDICATORS - IFRS
in millions of EUR 1Q/2019 1Q/2018 +/-
Sales 642.9 592.1 +8.6 %
EBITDA 90.9 83.6 +8.7 %
EBITDA margin (in %) 14.1 % 14.1 %
Operating profit 57.2 57.1 +0.2 %
Operating margin (in %) 8.9 % 9.6 %
Profit before tax 58.1 55.6 +4.5 %
Income tax expense (14.4) (13.9)
Profit for the period 43.7 41.7 +4.8 %
Earnings per share (in EUR) 2.17 2.08
The Group's consolidated sales increased by EUR 50.8 million or 8.6 % to EUR 642.9 million (1Q 2018: EUR 592.1 million), the EBITDA by 8.7 % to EUR 90.9 million (1Q 2018: EUR 83.6 million).
One-off acquisition effects from the initial consolidation of the Tann-Group were reported in the amount of around EUR -7 million due to recognition of order backlog and inventory measurement. Therefore, operating profit at EUR 57.2 million was at previous year's level (1Q 2018: EUR 57.1 million), resulting in an operating margin of 8.9 % (1Q 2018: 9.6 %).
Financial income totaling EUR 0.4 million (1Q 2018: EUR 0.3 million) contrasted with financial expenses amounting to EUR -2.0 million (1Q 2018: EUR -1.5 million). The "Other financial result - net" in-creased to EUR 2.5 million (1Q 2018: EUR -0.3 million), particularly as a result of foreign currency gains.
Profit before tax rose accordingly by 4.5 % to EUR 58.1 million (1Q 2018: EUR 55.6 million).
Income tax expense totaled EUR 14.4 million (1Q 2018: EUR 13.9 million).The effective Group tax rate therefore remained unchanged at around 25 %.
Profit for the period thus went up by 4.8 % to EUR 43.7 million (1Q 2018: EUR 41.7 million).
Visibility of demand on our European main markets has decreased as a result of a more short-term planning of customers. Nevertheless, both divisions continue to report overall stable capacity utilization. It remains difficult to estimate the sustainability. Faced with largely solid fiber prices and increasing competitive intensity, the focus lies on maintaining our selling prices as best as possible while protecting our market shares. Consistent cost management and continuous optimization in the product range are aimed at maintaining the quality of the Group's results at a good level.
Please find the detailed Press Release and the Interim Report for the 1st Quarter of 2019 on our website http://www.mayr-melnhof.com.
August 20, 2019 Half-Year Results 2019
For further information, please contact:
Mayr-Melnhof Karton AG
Tel.: +43 1 501 36-91180,
Fax: +43 1 501 36-191195
15.05.2019 Dissemination of a Corporate News, transmitted by DGAP - a service of EQS Group AG.The issuer is solely responsible for the content of this announcement.The DGAP Distribution Services include Regulatory Announcements, Financial/Corporate News and Press Releases. Archive at www.dgap.de
Mayr-Melnhof Karton AG
0043 1 501 36 91180
0043 1 501 36 91391
Regulated Unofficial Market in Berlin, Frankfurt (Basic Board), Munich, Stuttgart; Vienna Stock Exchange (Official Market)
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