Huhtamäki (HUH1V) SEB Nordic Seminar presentation summary

Strategic direction and sustainability

• Aims to be the first choice in sustainable packaging, focusing on recyclable, compostable, or reusable products and carbon-neutral production by 2030.

• 100% of fiber sourced from recycled or certified sources, with >80% renewable or recycled materials and 100% renewable energy targets.

• Recognized for sustainability with top ratings from EcoVadis, CDP, MSCI, and Sustainalytics.

• Strategy centers on scaling core businesses, developing sustainable innovations, and driving operational excellence.

• Efficiency program targets €100 million in savings by 2026 through cost reduction, material efficiency, and footprint optimization.

Financial performance and outlook

• Q3 2024 net sales decreased 1% to €1,026 million, with flat comparable sales and slight volume growth; adjusted EBIT rose 2% to €102 million, margin at 10%.

• Q1–Q3 2024 net sales down 2% to €3,068 million; adjusted EBIT up 8% to €307 million, margin at 10%.

• Free cash flow supported by higher EBITDA and lower capex; net debt/EBITDA stable at 2.0x.

• Dividend per share has grown for 15 consecutive years, with a payout ratio of 40–50%.

• Long-term ambitions: 5–6% net sales growth, 10–12% EBIT margin, 13–15% ROI, and net debt/EBITDA of 2–3x.

Segment performance

• North America: Net sales up 3% in Q3, adjusted EBIT up 8%, margin at 13.8%; demand improved except for ice cream packaging.

• Flexible Packaging: Net sales down 3%, margin improved to 7.3% despite higher labor and transport costs.

• Fiber Packaging: Net sales up 8%, driven by volume growth; EBIT down due to higher raw material costs.

• Foodservice EAO: Net sales down 5%, margin at 8.5%; demand remained soft due to high consumer prices and geopolitical factors.