Mayr-Melnhof Karton AG — Earnings Release 2016

Aug 18, 2016

News Details

Corporate | 18 August 2016 07:55

Mayr-Melnhof Karton AG: Results for the first Half-Year 2016

DGAP-News: Mayr-Melnhof Karton AG / Key word(s): Half Year Results

2016-08-18 / 07:55
The issuer is solely responsible for the content of this announcement.

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• Good first half-year
• Again increase in sales and profit
• Pressure on volumes and margins steps up

The Mayr-Melnhof Group was again able to successfully hold up its grounds
in the first half-year of 2016 facing increasingly challenging overall
conditions. Sales as well as profit exceed the previous year's figures.
However, visibility of demand on the cartonboard and folding carton markets
proved to be increasingly short-term over the first six months. Thus, the
overall situation starts to get more challenging.

The division MM Karton succeeded in maintaining the good level of the
previous year's period with a high degree of price discipline and stable
volume development. The division MM Packaging recorded solid profit
development and the expected growth following the acquisition of a French
folding carton group in the fourth quarter of last year.

Owing to a lack of sustained economic impulses for demand with sufficient
capacities on the markets, we expect that the pressure on margins will
rise. The good results in the first half-year will therefore be a challenge
for the second half of the year. However, to secure profitability the best
way possible with a consistent price policy, highest efficiency and an
optimized product mix remains our target.

Group Key indicators (IFRS)

Consolidated, in millions of EUR 1st HY/2016 1st HY/2015 +/-

Sales 1,142.2 1,069.6 +6.8 %
Operating Profit 110.8 96.5 +14.8 %
Operating margin (in %) 9.7 % 9.0 %
Profit before tax 108.9 90.8 +19.9 %
Profit for the period 80.4 67.2 +19.6 %
Earnings per share (in EUR) 4.01 3.33

The Group's consolidated sales went up by 6.8 % or EUR 72.6 million to EUR
1,142.2 million (1st half of 2015: EUR 1,069.6 million). This increase
results primarily from the acquisition-related higher business volume at MM
Packaging.

Operating profit grew by 14.8 % or EUR 14.3 million to EUR 110.8 million
(1st half of 2015: EUR 96.5 million). A significant rise at MM Packaging
was offset by a slight decrease at MM Karton. The Group's operating margin
climbed to 9.7 % (1st half of 2015: 9.0 %).

Financial income was at EUR 1.6 million (1st half of 2015: EUR 0.8
million), financial expenses amounted to EUR -3.2 million (1st half of
2015: EUR -3.2 million).

Profit before tax rose by 19.9 % to EUR 108.9 million (1st half of 2015:
EUR 90.8 million). Income tax expense totaled EUR 28.5 million following
EUR 23.6 million in the first half of the previous year, resulting in an
effective Group tax rate of 26.2 % (1st half of 2015: 26.0 %).

Profit for the period thus increased by 19.6 % to EUR 80.4 million (1st
half of 2015: EUR 67.2 million).

DEVELOPMENT IN THE SECOND QUARTER

As expected, sales in the second quarter were slightly below the first
quarter of 2016, however, acquisition-related significantly above the
comparative period of the previous year.

The cartonboard division recorded continuing good capacity utilization at
98 % (1Q 2016: 97 %; 2Q 2015: 99 %) and was able to maintain the operating
margin with 7.3 % at a good level (1Q 2016: 7.7 %; 2Q 2015: 8.5 %).

The packaging division achieved an operating margin of 11.1 % following
10.3 % in the first quarter of 2016 (2Q 2015: 7.9 %), mainly attributable
to the product mix.

The Group's operating profit reached EUR 55.6 million after EUR 55.2
million in the first quarter of 2016 and EUR 45.7 million in the second
quarter of the previous year. The operating margin was therefore 9.8 % (1Q
2016: 9.6 %; 2Q 2015: 8.5 %).

The profit for the period amounted to EUR 41.0 million (1Q 2016: EUR 39.4
million; 2Q 2015: EUR 31.7 million).

OUTLOOK

Against the background of weak economic performance and increasing
uncertainty, the overall general conditions for our business show a lack of
momentum. The situation on the European cartonboard and folding carton
markets starts to get more challenging. Due to sufficient capacities,
pressure on prices and therefore margins is increasing. As in the first
half of the year, our highest priority remains consequent price policy and
maintaining our market shares. Furthermore, we are strengthening the wide
range of cost-cutting measures to secure our competitive strength and
profitability of our business over the long term. The strong development in
the first half-year will nevertheless be a challenge for the second half of
the year.

Our growth strategy will be continued with a long-term view as hitherto,
concentrating on our core business, quality as well as manageable risk.

The Half-Year Financial Report 2016, the press release as well as the CEO
video presentation and the details for today's CEO Conference Call are
available on our website: www.mayr-melnhof.com

Forthcoming results:
November 15, 2016 Results for the first three quarters of 2016

For further information, please contact:

Stephan Sweerts-Sporck
Investor Relations
Mayr-Melnhof Karton AG
Brahmsplatz 6
A-1040 Vienna
Tel.: +43 1 501 36-91180
Fax: +43 1 501 36-191195
E-Mail: investor.relations@mm-karton.com
Website: http://www.mayr-melnhof.com

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2016-08-18 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.

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Language: English
Company: Mayr-Melnhof Karton AG
Brahmsplatz 6
1040 Wien
Austria
Phone: 0043 1 501 36 91180
Fax: 0043 1 501 36 91391
E-mail: investor.relations@mm-karton.com
Internet: www.mayr-melnhof.com
ISIN: AT0000938204
WKN: 93820
Indices: ATX
Listed: Regulated Unofficial Market in Berlin, Munich, Stuttgart;
Open Market in Frankfurt ; Wien (Amtlicher Handel /
Official Market)

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