Interim report
Page 2
Interim Report Q1 2025 | 2 Huhtamäki Oyj’s Interim Report January 1–March 31, 2025 Stable performance in a volatile environment Q1 2025 in brief • Net sales remained at the previous year’s level at EUR 1,002 million (EUR 1,004 million) • Comparable net sales growth was -2% at Group level • Reported EBIT was EUR 94 million (EUR 78 million), adjusted EBIT was EUR 98 million (EUR 99 million) • Reported EPS was EUR 0.54 (EUR 0.35); adjusted EPS was EUR 0.59 (EUR 0.55) • The impact of currency movements was EUR 11 million on the Group’s net sales and EUR 1 million on EBIT Key figures EUR million Q1 2025 Q1 2024 Change 2024 Net sales 1,001.6 1,003.9 0% 4,126.3 Comparable net sales growth -2% -2% 0% Adjusted EBITDA1 152.0 149.0 2% 622.2 Margin1 15.2% 14.8% 15.1% EBITDA 149.8 137.7 9% 595.6 Adjusted EBIT2 98.5 98.8 0% 416.9 Margin2 9.8% 9.8% 10.1% EBIT 93.7 77.6 21% 372.3 Adjusted EPS, EUR3 0.59 0.55 7% 2.48 EPS, EUR 0.54 0.35 57% 2.14 Adjusted ROI2 12.0% 11.5% 12.1% Adjusted ROE3 13.3% 13.3% 13.4% ROI 11.2% 10.7% 10.8% ROE 12.4% 11.0% 11.6% Capital expenditure 30.1 36.6 -18% 247.9 Free Cash Flow -22.5 38.2 <-100% 215.8 1 Excluding IAC of -2.1 -11.3 -26.5 2 Excluding IAC of -4.7 -21.2 -44.7 3 Excluding IAC of -4.6 -20.9 -35.1 Unless otherwise stated, all comparisons in this report are compared to the corresponding period in 2024. Figures of return on investment (ROI), return on equity (ROE) and return on net assets (RONA) as well as net debt to EBITDA presented in this report are calc ulated on a 12-month rolling basis. IAC includes, but is not limited to, material restructuring costs and acquisition related costs (gains and losses on business combinations, professional and legal fees, material purchase price accounting adjustments for inventory, material purchase price amortization of intangible assets and changes in contingent considerations) as well as material impairment losses and reversals, gains and losses relating to sale of intangible and tangible assets, implementation costs concerning large projects with SaaS cloud computing technology, fines and penalties imposed by authorities and extraordinary taxes. The figures in the tables are exact figures and consequently the sum of individual figures may deviate from the sum presented. Key figures have been calculated using exact figures.
Page 3
Interim Report Q1 2025 | 3 President and CEO’s review Despite the increased uncertainty in the market, our financial performance in the first quarter of 2025 was in line with the previous year’s level. Customers and consumers turned more cautious during the quarter due to geopolitical events. During the quarter, net sales and adjusted EBIT remained at the previous year’s level. We continued to make progress on our efficiency program, compensating for the negative impact from a decrease in sales volumes. By the end of Q1, we have achieved a total of EUR 8 7 million in cost savings and these have been essential to compensate for cost inflation. Fiber Packaging delivered strong growth with continued margin improvement. Our focus on margin improvement in Flexible Packaging yielded improved results, although the uncertainty in the market impacted net sales. In Foodservice Packaging, the softened demand had a negative impact on performance. In North America, performance was impacted by timing of sales in retail tableware, with sales partially pulled from January to December, and a seasonally late Easter. During the year, we have taken action in our three focus areas; growth through all levers, disciplined capital allocation as well as accountability and speed of execution. To reach our financial ambitions, we need to accelerate growth using all these levers. We will buil d on our strong relationships with our customers, focusing even more on global accounts, as well as regional and local accounts. Capital will be prioritized and allocated to the highest yielding and fastest growing segments. We made good pro gress on implementing clearer accountability throughout the organization, to remove complexity and increase speed of execution. The segments will have full responsibility for delivering financial results. We have taken a number of steps to increase accountability, including the establishment of a standalone Fiber Packaging segment. Furthermore, the segments are planned to own sustainability related to products and operations, business development, human resources operations as well as local IT support. To drive competitiveness, we established a global procurement organization. Uncertainty in the market increased again during the first quarter, due to the tariff situation. Our US business mostly operates on a local -for-local basis, with a minor share of imports of both raw materials and finished goods. We will actively monitor and adapt according to the development in the market, work ing closely with our customers and suppliers. We remain focused on driving actions to improve our performance, both to create growth, manage our costs and improve our profitability. I have confidence in our team’s ability to deliver value to all our stakeholders. Ralf K. Wunderlich President and CEO
Page 4
Interim Report Q1 2025 | 4 Financial review Q1 2025 Net sales by business segment EUR million Q1 2025 Q1 2024 Change Foodservice Packaging 234.2 241.1 -3% North America 345.6 344.1 0% Flexible Packaging 328.7 335.2 -2% Fiber Packaging 95.8 85.0 13% Elimination of internal sales -2.7 -1.6 Group 1,001.6 1,003.9 0% Net sales by segment, Q1 2025 Net sales by segment, Q1 2024 Comparable net sales growth by business segment Q1 2025 Q4 2024 Q3 2024 Q2 2024 Q1 2024 Foodservice Packaging -4% -1% -7% -6% -5% North America -3% 2% 3% -2% -3% Flexible Packaging -2% 5% 0% 2% -1% Fiber Packaging 10% 12% 8% 3% 1% Group -2% 3% 0% -1% -2% The Group’s net sales remained at the previous year’s level at EUR 1,002 million (EUR 1,004 million) during the quarter. Sales volumes decreased, while sales prices increased. Net sales increased in Fiber Packaging and remained unchanged in North America, but decreased in Foodservice Packaging and Flexible Packaging. Comparable net sales growth was -2%. Foreign currency translation impact on the Group’s net sales was EUR 11 million (EUR -17 million) compared to 2024 exchange rates. 23% 34% 33% 10% Foodservice Packaging North America Flexible Packaging Fiber Packaging 24% 34% 33% 8% Foodservice Packaging North America Flexible Packaging Fiber Packaging
Page 5
Interim Report Q1 2025 | 5 Adjusted EBIT by business segment Items affecting comparability EUR million Q1 2025 Q1 2024 Change Q1 2025 Q1 2024 Foodservice Packaging 19.8 22.0 -10% -0.4 -16.3 North America 40.5 47.9 -15% -1.9 -1.0 Flexible Packaging 26.6 21.6 23% -2.8 -2.4 Fiber Packaging 12.3 8.6 43% 0.5 -1.2 Other activities -0.7 -1.3 -0.2 -0.3 Group 98.5 98.8 0% -4.7 -21.2 Adjusted EBIT by segment, Q1 2025 Adjusted EBIT by segment, Q1 2024 Adjusted EBIT margin by business segment Q1 2025 Q4 2024 Q3 2024 Q2 2024 Q1 2024 Foodservice Packaging 8.5% 9.9% 8.5% 9.2% 9.1% North America 11.7% 13.7% 13.8% 14.3% 13.9% Flexible Packaging 8.1% 8.4% 7.3% 6.4% 6.4% Fiber Packaging 12.8% 15.2% 9.2% 12.9% 10.1% Group 9.8% 10.4% 10.0% 10.2% 9.8% The Group’s adjusted EBIT remained at the previous year’s level at EUR 98 million (EUR 99 million) and reported EBIT was EUR 94 million (EUR 78 million). The company’s actions to improve profitability and higher sales prices had a positive impact on profitability, balancing the negative impact from lower sales volumes. The Group’s adjusted EBIT margin remained at the previous year’s level and was 9.8% (9.8%). Foreign currency translation impact on the Group’s earnings was EUR 1 million (EUR -2 million). Adjusted EBIT excludes EUR -4.7 million (EUR -21.2 million) of items affecting comparability (IAC), including costs of implementing operational efficiency measures. 20% 41% 27% 12% Foodservice Packaging North America Flexible Packaging Fiber Packaging 22% 48% 22% 9% Foodservice Packaging North America Flexible Packaging Fiber Packaging
Page 6
Interim Report Q1 2025 | 6 Adjusted EBIT and IAC EUR million Q1 2025 Q1 2024 Adjusted EBIT 98.5 98.8 Acquisition related costs - 0.0 Restructuring gains and losses, including writedowns of related assets -1.3 -17.2 PPA amortization -2.3 -2.2 Settlement and legal fees of disputes - -0.1 Property damage incidents 0.7 -0.5 Implementation costs concerning large projects with SaaS cloud computing technology -1.9 -1.2 EBIT 93.7 77.6 Net financial expenses were EUR 14 million (EUR 21 million). The decrease was due to the unusually high level in the comparison period, partly related to the devaluation of the Egyptian pound. Tax expense was EUR 21 million (EUR 18 million). The corresponding tax rate was 26% ( 32%). The decrease was due to the unusually high tax rate in the comparison period, related to certain non-deductible costs related to the restructuring program . Profit for the first quarter was EUR 59 million (EUR 39 million). Adjusted earnings per share (EPS) was EUR 0.59 (EUR 0.55) and reported EPS EUR 0.54 (EUR 0.35). Adjusted EPS is calculated based on adjusted profit for the period, which excludes EUR -4.6 million (EUR -20.9 million) of IAC. Adjusted profit and IAC EUR million Q1 2025 Q1 2024 Adjusted profit for the period attributable to equity holders of the parent company 61.5 57.2 IAC in EBIT -4.7 -21.2 IAC in Financial items 0.2 -0.5 IAC Tax -0.1 0.8 IAC attributable to non-controlling interest 0.1 0.1 Profit for the period attributable to equity holders of the parent company 56.9 36.3 Statement of financial position and cash flow The Group’s net debt remained at the previous year’s level and was EUR 1,252 million (EUR 1,249 million) at the end of March. The level of net debt corresponds to a gearing ratio of 0.59 ( 0.62). Net debt to adjusted EBITDA ratio (excluding IAC) was 2.0 (2.1). Average maturity of external committed credit facilities and loans was 2.9 years (2.6 years). Cash and cash equivalents were EUR 277 million (EUR 354 million) at the end of March and the Group had EUR 404 million (EUR 354 million) of unused committed credit facilities available. Total assets on the statement of financial position were EUR 4,838 million (EUR 4,768 million). Capital expenditure was EUR 30 million (EUR 37 million). The decrease was due to timing of projects and the largest investments for business expansion were directed to increase capacity in North America and Fiber Packaging. The Group’s free cash flow was EUR -22 million (EUR 38 million). The main reason for the decreased free cash flow was an increase in working capital.
Page 7
Interim Report Q1 2025 | 7 Sustainability Huhtamaki is implementing a new operating model. Going forward, sustainability responsibilities related to products and operations are planned to be be realigned to the business segments to accelerate the implementation of the sustainability strategy. During the first quarter of 2025, Huhtamaki continued to work towards it’s sustainability targets. Key focus areas include reduction of greenhouse gas emissions, water management, waste reduction and safety. Huhtamaki improved its rating with CDP on climate to leadership level A - from B. For forest and water, Huhtamaki maintained its B rating. The improvement reflects the company's commitment to sustainability and minimizing the environmental impact. Three-year program to accelerate strategy implementation and to bring MEUR 100 cost savings On November 30, 2023, Huhtamaki announced that the company is accelerating the strategy implementation by starting a program which is expected to materially support the profitability with efficiency improvements leading to savings of approximately EUR 100 million over three years. In February 2025, the company stated that it expects to achieve the EUR 100 million savings target and to complete the program ahead of the original schedule. The costs of the program were originally expected to be approximately EUR 80 million, which upon materialization will be treated as items affecting comparability. According to the updated estimate, the total costs of the program are expected to be below EUR 80 million. By the end of Q1 2025, the program had generated total cost savings of approximately EUR 8 7 million, significantly compensating for the continued high cost inflation. Program-related costs accounted for EUR 25 million by the end of Q1 2025, including a positive impact from divestment of real estate in China. Other significant events during the reporting period Huhtamaki appointed Ralf K. Wunderlich as President and CEO On January 8, 2025, Huhtamaki announced the appointment Ralf K. Wunderlich as President and CEO effective on January 15, 2025 when the Company’s previous President and CEO Charles Héaulmé stepped down. Subsequent to Ralf K. Wunderlich appointed as the President and CEO, he stepped down from the Board of Directors of Huhtamäki Oyj with immediate effect. The Board of Directors now comprise of seven members. Huhtamaki separated Fiber Foodservice business segment and appointed Sara Engber as President, Fiber Packaging On February 14, 2025, Huhtamaki announed the separation of the Fiber Foodservice Europe- Asia-Oceania business segment into two distinct business segments, Fiber Packaging and Foodservice Packaging, effective April 1, 2025. The aim of the change is to drive profitable growth by giving accountability to the businesses and increasing speed of execution. Both segments have their own presidents, who are part of the Global Executive Team. Sara Engber was appointed President, Fiber Packaging and member of the Global Executive Team at Huhtamaki. Fredrik Davidsson continues as a member of Global Executive Team as President, Foodservice Packaging. Huhtamaki appointed Changsheng Wu as Executive Vice President, Procurement On March 18, 2025, Huhtamaki announced the appointment of Changsheng Wu as Executive Vice President, Procurement and member of the Global Executive Team, effective April 1, 2025. He reports to President and CEO Ralf K. Wunderlich and is based in Espoo, Finland.
Page 8
Interim Report Q1 2025 | 8 Significant events after the reporting period Changes in Huhtamaki’s Global Executive Team On April 1, 2025, Huhtamaki announced changes to empower business segments to accelerate execution of its 2030 profitable growth strategy. Effective immediately, changes were made to the organizational structure of the Sustainability and Communications as well as the Strategy and Business Development functions. As a result, the changes streamlined the Global Executive Team (GET). The Sustainability and Communications function was realigned. Sustainability responsibilities related to products and operations were realigned to the business segments to accelerate the implementation of the sustainability strategy. The Group-level sustainability responsibilities related to governance, public affairs and reporting are led by Sami Pauni, who was appointed Executive Vice President , Sustainability, Corporate Affairs and Legal. The Global Communications function reports directly to President and CEO Ralf K. Wunderlich. As a result of these changes, Salla Ahonen, Executive Vice President Sustainability and Communications, decided to leave Huhtamaki. The business segments will have full accountability over strategy execution and business development. Hence, the segment-focused Strategy and Business Development started reporting directly into the business segments. The Group- level strategy, governance, and coordination is led by Thomas Geust, Chief Financial Officer, who t ook on the responsibility of the Group’s strategy planning process. Wilhelm Wolff, previously Executive Vice President Strategy and Business Development, stepped down from the GET.
Page 9
Interim Report Q1 2025 | 9 Business review by segment Foodservice Packaging Foodservice offers high- quality paperboard and molded fiber packaging for fresh food and drinks to foodservice operators, fast food restaurants, coffee shops and FMCG companies. The segment has production units in Europe, Africa, Middle East, Asia and Oceania. EUR million Q1 2025 Q1 2024 Change 2024 Net sales 234.2 241.1 -3% 989.6 Comparable net sales growth -4% -5% -5% Adjusted EBIT1 19.8 22.0 -10% 91.0 Margin1 8.5% 9.1% 9.2% Adjusted RONA1 9.9% 10.8% 10.3% Capital expenditure 4.7 5.4 -13% 66.3 Operating cash flow1 7.8 29.5 -74% 98.5 Items affecting comparability (IAC) -0.4 -16.3 -15.1 1 Excluding IAC. Q1 2025 The demand for foodservice packaging softened during the quarter. Prices of raw materials remained close to the previous year’s level. Net sales in the Foodservice Packaging segment decreased and c omparable net sales growth was - 4%. Both sales volumes and pricing decreased. Net sales decreased in most markets, particularly the Middle East and Africa. The impact of currency movements on the segment’s reported net sales was EUR 2 million. The segment’s adjusted EBIT decreased due to lower sales volumes and prices. At the same time, actions to improve profitability and lower input costs had a positive impact on profitability. The impact of currency movements on the segment’s reported earnings was EUR 0 million.
Page 10
Interim Report Q1 2025 | 10 North America The North America segment serves local markets with retail disposable tableware products supplying both branded Chinet® products and complementary private label products, foodservice packaging products, as well as ice-cream containers and other consumer goods packaging products. The segment has production in the United States and Mexico. EUR million Q1 2025 Q1 2024 Change 2024 Net sales 345.6 344.1 0% 1,460.1 Comparable net sales growth -3% -3% 0% Adjusted EBIT1 40.5 47.9 -15% 203.4 Margin1 11.7% 13.9% 13.9% Adjusted RONA1 18.5% 18.9% 19.6% Capital expenditure 12.3 14.6 -16% 83.9 Operating cash flow1 -7.7 73.0 <-100% 219.5 Items affecting comparability (IAC) -1.9 -1.0 -7.6 1 Excluding IAC. Q1 2025 Demand softened from the previous year’s level, but with differences between categories. Prices of raw materials remained close to the previous year’s level. Net sales in the North America segment remained at the previous year’s level, while comparable net sales growth was -3%. Both sales volumes and sales prices decreased. Sales decreased in retail tableware, due to timing as sales was partially pulled from January to December and a seasonally late Easter. Net sales remained at the previous years’ level in foodservice and consumer goods. The impact of currency movements on the segment’s reported net sales was EUR 11 million. The segment’s adjusted EBIT decreased. A decrease in sales volumes and prices, as well as higher labor and transportation costs, had a negative impact on profitability. Additionally, there was a negative mix impact due to the decrease in sales of retail tableware. The impact of currency movements on the segment’s reported earnings was EUR 1 million.
Page 11
Interim Report Q1 2025 | 11 Flexible Packaging Flexible packaging is used for a wide range of consumer products including food, pet food, hygiene and health care products. The segment serves global markets from production units in Europe, Middle East and Africa, Asia and South America. EUR million Q1 2025 Q1 2024 Change 2024 Net sales 328.7 335.2 -2% 1,322.5 Comparable net sales growth -2% -1% 1% Adjusted EBIT1 26.6 21.6 23% 94.2 Margin1 8.1% 6.4% 7.1% Adjusted RONA1 7.5% 6.6% 7.1% Capital expenditure 5.7 12.6 -55% 69.0 Operating cash flow1 5.7 -0.1 >100% 84.1 Items affecting comparability (IAC) -2.8 -2.4 -16.6 1 Excluding IAC. Q1 2025 Overall demand for flexible packaging weakened but with significant variations by market. Prices of raw materials remained close to the previous year’s level, however with the price of aluminium increasing. Net sales in the Flexible Packaging segment decreased and comparable net sales growth was - 2%. Net sales was supported by pricing, while sales volumes decreased. Net sales increased in Western Europe, but decreased in most other markets. The impact of currency movements on the segment’s reported net sales was EUR -1 million. The segment’s adjusted EBIT increased. It was supported by increased sales prices and actions to improve profitability. The impact of currency movements on the segment’s reported earnings was EUR 0 million.
Page 12
Interim Report Q1 2025 | 12 Fiber Packaging Recycled and other natural fibers are used to make fresh product packaging, such as egg, fruit, food and drink packaging. The segment has production in Europe, Oceania, Africa and South America. EUR million Q1 2025 Q1 2024 Change 2024 Net sales 95.8 85.0 13% 363.2 Comparable net sales growth 10% 1% 6% Adjusted EBIT1 12.3 8.6 43% 43.5 Margin1 12.8% 10.1% 12.0% Adjusted RONA1 15.9% 13.1% 14.6% Capital expenditure 7.4 3.5 >100% 28.1 Operating cash flow1 0.9 -5.3 >100% 42.6 Items affecting comparability (IAC) 0.5 -1.2 -2.2 1 Excluding IAC. Q1 2025 Overall demand for fiber-based egg and fruit packaging improved, but softened for food-on-the-go products. The prices of recycled fiber increased compared to the first quarter of 2024. Net sales in the Fiber Packaging segment increased and comparable net sales growth was 10% . Net sales increased driven by both pricing and sales volumes. Sales increased in most markets. The impact of currency movements on the segment’s reported net sales was EUR -1 million. The segment’s adjusted EBIT increased, supported by a growth in net sales. The impact on profitability from increased costs for raw materials and distribution was offset by pricing actions. The impact of currency movements on the segment’s reported earnings was EUR 0 million.
Page 13
Interim Report Q1 2025 | 13 Personnel Number of personnel March 31, 2025 March 31, 2024 Change Foodservice Packaging 3,995 4,127 -3% North America 4,422 4,065 9% Flexible Packaging 7,381 7,701 -4% Fiber Packaging 1,730 1,726 0% Corporate 291 249 17% Group 17,819 17,868 0% Personnel by segment on March 31, 2025 Personnel by segment on March 31, 2024 At the end of March 2025, the Group had a total of 17,819 (17,868) employees. The number of employees remained at the previous year’s level. Changes in management On January 8, 2025, Huhtamaki announced the appointment Ralf K. Wunderlich as President and CEO effective on January 15, 2025 when the Company’s previous President and CEO Charles Héaulmé stepped down. On February 14, 2025, Huhtamaki announced that Sara Engber was appointed President, Fiber Packaging and member of the Global Executive Team at Huhtamaki. She reports to President and CEO Ralf K. Wunderlich and is based in Espoo, Finland. The appointment follows the decision in which Huhtamaki decided to separate the Fiber Foodservice business segment into two distinct business segments, Fiber Packaging and Foodservice Packaging. On March 18, 2025, Huhtamaki announced the appointment of Changsheng Wu as Executive Vice President, Procurement and member of the Global Executive Team, effective April 1, 2025. He reports to President and CEO Ralf K. Wunderlich and is based in Espoo, Finland. On April 1, 2025, Huhtamaki announced changes to empower business segments to accelerate execution of its 2030 profitable growth strategy. Effective immediately, changes were made to the organizational structure of the Sustainability and Communications as well as the Strategy and Business Development functions. As a result, the changes streamlined the Global Executive Team (GET). The Group-level sustainability responsibilities related to governance, public affairs, and reporting are led by Sami Pauni, who was appointed Executive Vice President Sustainability, Corporate Affairs and Legal. The Global Communications function reports directly to President and CEO Ralf K. Wunderlich. As a result of these changes, Salla Ahonen, Executive Vice President Sustainability and Communications, decided to leave Huhtamaki. Additionally, the Group-level strategy, governance, and coordination is led by Thomas Geust, Chief Financial Officer, who took on the responsibility of the Group’s strategy planning process. Wilhelm Wolff, previously Executive Vice President Strategy and Business Development, stepped down from the GET. 22% 25%41% 10% 2% Foodservice Packaging North America Flexible Packaging Fiber Packaging Corporate 23% 23%43% 10%1% Foodservice Packaging North America Flexible Packaging Fiber Packaging Corporate
Page 14
Interim Report Q1 2025 | 14 Share capital, shareholders and trading of shares Share capital and number of shares March 31, 2025 March 31, 2024 Registered share capital (EUR million) 366 366 Total number of shares 107,760,385 107,760,385 Shares owned by the Company 2,792,075 2,999,685 % of total number of shares 2.6% 2.8% Number of outstanding shares1 104,968,310 104,760,700 Average number of shares1, 2 104,788,381 104,565,378 1 Excluding shares owned by the Company. 2 Average number of outstanding shares used in EPS calculations. Shareholder structure as at March 31, 2025 The number of registered shareholders at the end of March 2025 was 53,450 (52,296). Foreign ownership including nominee registered shares accounted for 43% (43%). Trading of shares Trading of Huhtamaki shares on Nasdaq Helsinki Q1 2025 Q1 2024 Number of shares traded, million 8.8 9.3 Closing price on final day of trading, EUR 32.84 38.83 Volume-weighted average price, EUR 35.40 37.29 High, EUR 38.68 39.85 Low, EUR 32.78 35.41 Market capitalization (at end of period), EUR million 3,447 4,068 During the reporting period , Huhtamaki Oyj’s (Company) shares were quoted on Nasdaq Helsinki Ltd on the Nordic Large Cap list under the Industrials sector. It was a component of the Nasdaq Helsinki 25 Index. At the end of March 2025 , the Company’s market capitalization was EUR 3,447 million (EUR 4,068 million). With a closing price of EUR 32.84 (EUR 38.83) at the end of the reporting period, the share price decreased approximately 4% from the beginning of the year. During the reporting period the volume weighted average price for the Company’s shares was EUR 35.40 (EUR 37.29). The highest price paid was EUR 38.68 (EUR 39.85) and the lowest was EUR 32.78 (EUR 35.41). During the reporting period, the cumulative value of the Company’s share turnover on Nasdaq Helsinki Ltd was EUR 312 million (EUR 346 million). The trading volume of approximately 9 million (9 million) shares equaled an average daily turnover of 141,967 (147,423) shares. The cumulative value of the Company’s share turnover including alternative trading venues, such as BATS Chi- X and Turquoise, was EUR 1,064 million (EUR 1,188 million). During the reporting period, 71% (71%) of all trading took place outside Nasdaq Helsinki Ltd (source: LSEG Workspace). 40.7% 15.9% 43.4% Finnish institutions, companies and organizations Households Foreign and nominee-registered shareholders
Page 15
Interim Report Q1 2025 | 15 Short-term risks and uncertainties Decline in consumer demand, inflation in key cost items (including raw materials, labor, distribution and energy), availability of raw materials , movements in currency rates and trade tariffs are considered to be relevant short -term business risks and uncertainties in the Group's operations. Economic and financial market conditions, as well as a potential geopolitical escalation and natural disasters can also have an adverse effect on the implementation of the Group's strategy and on its business performance and earnings. Outlook for 2025 (unchanged) The Group’s trading conditions are expected to remain relatively stable during 2025. The good financial position will enable the Group to address profitable growth opportunities. Annual General Meeting 2025 Huhtamäki Oyj’s Annual General Meeting (AGM) will be held on Thursday, April 24, 2025 at 11:00 (EEST) at Scandic Marina Congress Center, Katajanokanlaituri 6, Helsinki, Finland. Financial reporting in 2025 In 2025, Huhtamaki will publish financial information as follows: Half-yearly Report, January 1 - June 30, 2025 July 24 Interim Report, January 1 - September 30, 2025 October 23 Espoo, April 23, 2025 Huhtamäki Oyj Board of Directors
Page 16
Interim Report Q1 2025 | 16 Interim Financial Statements are unaudited. Group income statement (IFRS) EUR million Q1 2025 Q1 2024 2024 Net sales 1,001.6 1,003.9 4,126.3 Cost of goods sold -803.6 -823.1 -3,344.7 Gross profit 198.0 180.8 781.6 Other operating income 5.0 6.0 41.3 Sales and marketing -25.4 -25.2 -104.8 Research and development -9.5 -9.0 -34.7 Administration expenses -73.5 -70.9 -297.3 Other operating expenses -0.8 -4.1 -13.7 Earnings before interest and taxes 93.7 77.6 372.3 Financial income 4.7 4.4 16.6 Financial expenses -18.8 -25.6 -88.3 Profit before taxes 79.6 56.3 300.5 Income tax expense -20.6 -17.7 -68.7 Profit for the period 59.0 38.6 231.8 Attributable to: Equity holders of the parent company 56.9 36.3 224.1 Non-controlling interest 2.0 2.3 7.7 EUR EPS attributable to equity holders of the parent company 0.54 0.35 2.14 Diluted EPS attributable to equity holders of the parent company 0.54 0.35 2.13
Page 17
Interim Report Q1 2025 | 17 Group statement of comprehensive income (IFRS) EUR million Q1 2025 Q1 2024 2024 Profit for the period 59.0 38.6 231.8 Other comprehensive income: Items that will not be reclassified to profit or loss Remeasurements on defined benefit plans -4.1 7.6 3.4 Income taxes related to items that will not be reclassified 1.1 -1.9 -0.7 Total -3.0 5.6 2.7 Items that may be reclassified subsequently to profit or loss Translation differences -71.6 41.3 104.9 Equity hedges 6.4 -5.4 -15.8 Cash flow hedges 1.0 1.0 -1.8 Cash flow hedges recognized in other comprehensive income 1.6 1.8 0.8 Cash flow hedges transferred to profit or loss 0.1 -0.1 -0.4 Cash flow hedges transferred to statement of financial position -0.6 -0.7 -2.3 Income taxes related to items that may be reclassified -0.2 -0.3 0.3 Total -64.4 36.6 87.5 Other comprehensive income, net of tax -67.4 42.3 90.2 Total comprehensive income -8.5 80.8 322.0 Attributable to: Equity holders of the parent company -8.2 77.1 311.1 Non-controlling interest -0.3 3.7 10.9
Page 18
Interim Report Q1 2025 | 18 Group statement of financial position (IFRS) EUR million Mar 31, 2025 Dec 31, 2024 Mar 31, 2024 ASSETS Non-current assets Goodwill 1,005.8 1,024.1 1,007.8 Other intangible assets 96.3 93.7 99.4 Tangible assets 1,854.7 1,913.9 1,796.4 Other investments 3.2 2.8 2.0 Interest-bearing receivables 4.2 4.2 3.8 Deferred tax assets 64.8 63.8 48.9 Employee benefit assets 61.6 63.8 54.5 Other non-current assets 8.2 8.7 8.7 3,098.9 3,175.0 3,021.4 Current assets Inventory 702.1 666.6 658.6 Interest-bearing receivables 25.7 24.9 14.9 Current tax assets 31.1 30.1 26.8 Trade and other current receivables 701.6 678.1 682.6 Cash and cash equivalents 277.4 317.1 353.6 Assets held for sale 1.7 1.7 9.6 1,739.6 1,718.5 1,746.2 Total assets 4,838.4 4,893.5 4,767.6 EQUITY AND LIABILITIES Share capital 366.4 366.4 366.4 Premium fund 115.0 115.0 115.0 Treasury shares -25.7 -27.6 -27.6 Translation differences -79.3 -16.5 -67.6 Fair value and other reserves -48.8 -46.6 -41.7 Retained earnings 1,695.5 1,646.6 1,565.2 Total equity attributable to equity holders of the parent company 2,023.1 2,037.3 1,909.8 Non-controlling interest 86.5 86.8 90.3 Total equity 2,109.6 2,124.1 2,000.1 Non-current liabilities Interest-bearing liabilities 1,324.7 1,329.1 1,409.3 Deferred tax liabilities 135.4 138.2 138.5 Employee benefit liabilities 152.9 150.0 139.1 Provisions 12.9 13.4 13.5 Other non-current liabilities 8.2 8.4 7.9 1,634.0 1,639.1 1,708.3 Current liabilities Interest-bearing liabilities Current portion of long term loans 112.7 114.1 165.6 Short-term loans 122.4 118.7 46.6 Provisions 8.7 9.4 9.5 Current tax liabilities 91.4 72.1 76.9 Trade and other current liabilities 759.8 816.0 760.6 1,094.9 1,130.3 1,059.2 Total liabilities 2,728.9 2,769.4 2,767.5 Total equity and liabilities 4,838.4 4,893.5 4,767.6
Page 19
Interim Report Q1 2025 | 19 Group statement of changes in equity (IFRS) Attributable to equity holders of the parent company EUR million Share capital Share issue premium Treasury shares Translation differences Fair value and other reserves Retained earnings Total Non-controlling interest Total equity Balance on January 1, 2024 366.4 115.0 -29.6 -102.1 -48.1 1,536.7 1,838.3 86.6 1,924.9 Dividends - - - - - - - - - Share-based payments - - 2.0 - - -7.7 -5.6 - -5.6 Total comprehensive income for the year - - - 34.5 6.4 36.3 77.1 3.7 80.8 Other Changes - - - - - 0.0 0.0 0.0 0.0 Balance on March 31, 2024 366.4 115.0 -27.6 -67.6 -41.7 1,565.2 1,909.8 90.3 2,000.1 Balance on January 1, 2025 366.4 115.0 -27.6 -16.5 -46.6 1,646.6 2,037.3 86.8 2,124.1 Dividends - - - - - - - - - Share-based payments - - 1.9 - - -8.0 -6.1 - -6.1 Total comprehensive income for the year - - - -62.9 -2.2 56.9 -8.2 -0.3 -8.5 Other Changes - - - - - 0.1 0.1 0.0 0.1 Balance on March 31, 2025 366.4 115.0 -25.7 -79.3 -48.8 1,695.5 2,023.1 86.5 2,109.6
Page 20
Interim Report Q1 2025 | 20 Group statement of cash flows (IFRS) EUR million Q1 2025 Q1 2024 2024 Profit for the period* 59.0 38.6 231.8 Adjustments* 92.5 99.1 348.2 Depreciation, amortization and impairments* 56.1 60.1 223.4 Gain/loss from disposal of assets* 0.4 0.1 -12.9 Financial expense/-income* 14.2 21.3 71.8 Income tax expense* 20.6 17.7 68.7 Other adjustments* 1.2 -0.2 -2.7 Change in inventory* -49.8 -32.2 -27.2 Change in non-interest bearing receivables* -37.7 -56.5 -38.8 Change in non-interest bearing payables* -50.7 33.8 69.0 Dividends received* - 0.1 0.2 Interest received* 3.4 2.7 14.3 Interest paid* -5.9 -5.8 -69.6 Other financial expense and income* -1.1 -4.7 -8.2 Taxes paid* -2.5 -10.6 -87.0 Net cash flows from operating activities 7.2 64.4 432.7 Capital expenditure* -30.1 -36.6 -247.9 Proceeds from selling tangible assets* 0.5 10.3 31.0 Change in other investments -0.4 0.2 -0.6 Proceeds from long-term deposits -0.2 0.0 0.1 Payment of long-term deposits - -1.4 -1.6 Proceeds from short-term deposits 3.2 2.2 7.3 Payment of short-term deposits -3.4 -2.0 -19.9 Net cash flows from investing activities -30.5 -27.1 -231.8 Proceeds from long-term borrowings 10.9 11.6 135.6 Repayment of long-term borrowings -13.8 -7.6 -99.3 Change in short-term loans -4.1 -38.9 -162.2 Dividends paid to the owners of the parent 0.0 - -110.0 Dividends paid to non-controlling interests - - -11.3 Net cash flows from financing activities -7.0 -34.9 -247.2 Change in cash and cash equivalents -39.7 5.4 -31.1 Cash flow based -30.4 2.3 -46.3 Translation difference -9.4 3.1 15.2 Cash and cash equivalents period start 317.1 348.2 348.2 Cash and cash equivalents period end 277.4 353.6 317.1 Free cash flow (including figures marked with *) -22.5 38.2 215.8
Page 21
Interim Report Q1 2025 | 21 Notes to the Interim Report The Interim Report has been prepared in accordance with IAS 34 Interim Financial Reporting. Except for the accounting policy changes listed below, the same accounting policies have been applied in the Interim Report as in the annual financial statements for 2024. The following new and amended standards and interpretations have been adopted with effect from January 1, 2025. The amendments had no impact on the interim financial statements: • Revised IAS 21 The Effects of Changes in Foreign Exchange Rates (Lack of Exchangeability) : The amendments require to apply a consistent approach in assessing whether a currency can be exchanged into another currency and, when it cannot, in determining the exchange rate to use and the disclosures to provide.
Page 22
Interim Report Q1 2025 | 22 Segments Segment information is presented according to the IFRS standards. Items below EBIT – financial items and taxes – are not allocated to the segments. Reportable segments ’ net sales and EBIT form Group’ s total net sales and EBIT, so no reconciliations to corresponding amounts are presented. Net sales EUR million Q1 2025 2024 Q4 2024 Q3 2024 Q2 2024 Q1 2024 Foodservice Packaging 233.4 988.1 248.8 246.6 251.9 240.8 Intersegment net sales 0.9 1.4 0.4 0.4 0.4 0.3 North America 345.1 1,458.7 386.2 359.0 369.8 343.8 Intersegment net sales 0.5 1.4 0.3 0.3 0.5 0.3 Flexible Packaging 328.4 1,321.8 327.4 333.8 325.6 335.0 Intersegment net sales 0.2 0.7 0.1 0.1 0.3 0.2 Fiber Packaging 94.7 357.6 96.3 86.8 90.3 84.2 Intersegment net sales 1.1 5.6 2.3 1.1 1.5 0.8 Elimination of intersegment net sales -2.7 -9.1 -3.0 -1.9 -2.7 -1.6 Total 1,001.6 4,126.3 1,058.7 1,026.2 1,037.5 1,003.9 EBIT EUR million Q1 2025 2024 Q4 2024 Q3 2024 Q2 2024 Q1 2024 Foodservice Packaging 19.4 75.9 21.8 20.3 28.1 5.7 North America 38.6 195.9 51.3 47.2 50.5 46.9 Flexible Packaging 23.8 77.7 20.0 20.5 18.0 19.2 Fiber Packaging 12.8 41.3 14.5 7.9 11.6 7.3 Other activities -0.8 -18.5 -12.5 -0.8 -3.6 -1.6 Total 93.7 372.3 95.0 95.1 104.6 77.6 IAC in EBIT EUR million Q1 2025 2024 Q4 2024 Q3 2024 Q2 2024 Q1 2024 Foodservice Packaging -0.4 -15.1 -2.9 -0.8 4.9 -16.3 North America -1.9 -7.6 -1.6 -2.5 -2.5 -1.0 Flexible Packaging -2.8 -16.6 -7.4 -3.8 -2.9 -2.4 Fiber Packaging 0.5 -2.2 -0.5 -0.2 -0.3 -1.2 Other activities -0.2 -3.2 -2.8 0.0 -0.1 -0.3 Total -4.7 -44.7 -15.3 -7.3 -0.9 -21.2
Page 23
Interim Report Q1 2025 | 23 EBITDA EUR million Q1 2025 2024 Q4 2024 Q3 2024 Q2 2024 Q1 2024 Foodservice Packaging 36.7 148.0 39.4 36.4 44.2 28.1 North America 56.0 260.8 68.4 63.3 66.6 62.6 Flexible Packaging 39.0 139.2 35.7 35.7 33.4 34.5 Fiber Packaging 18.5 64.0 19.9 13.4 17.1 13.5 Other activities -0.4 -16.4 -12.0 -0.4 -3.0 -1.1 Total 149.8 595.6 151.4 148.4 158.2 137.7 IAC in EBITDA EUR million Q1 2025 2024 Q4 2024 Q3 2024 Q2 2024 Q1 2024 Foodservice Packaging -0.1 -6.5 -2.1 -0.4 5.4 -9.3 North America -1.9 -7.6 -1.6 -2.5 -2.5 -1.0 Flexible Packaging -0.5 -7.7 -5.2 -1.6 -0.7 -0.2 Fiber Packaging 0.5 -1.5 -0.5 -0.2 -0.3 -0.5 Other activities -0.2 -3.2 -2.8 0.0 -0.1 -0.3 Total -2.1 -26.5 -12.2 -4.8 1.8 -11.3
Page 24
Interim Report Q1 2025 | 24 Depreciation and amortization EUR million Q1 2025 2024 Q4 2024 Q3 2024 Q2 2024 Q1 2024 Foodservice Packaging 17.3 72.1 17.7 16.1 16.0 22.4 North America 17.4 65.0 17.0 16.2 16.1 15.7 Flexible Packaging 15.3 61.5 15.7 15.2 15.3 15.3 Fiber Packaging 5.7 22.7 5.4 5.5 5.5 6.2 Other activities 0.5 2.0 0.5 0.4 0.6 0.5 Total 56.1 223.4 56.4 53.3 53.5 60.1 Net assets allocated to the segments1 EUR million Q1 2025 Q4 2024 Q3 2024 Q2 2024 Q1 2024 Foodservice Packaging 936.6 928.9 853.3 867.5 882.4 North America 1,110.0 1,073.0 1,006.0 1,040.0 1,023.7 Flexible Packaging 1,334.4 1,344.5 1,310.8 1,327.7 1,335.4 Fiber Packaging 262.2 325.4 312.7 284.3 272.1 1 Following statement of financial position items are included in net assets: intangible and tangible assets, equity-accounted investments, other non- current assets, inventories, trade and other current receivables (excluding accrued interest income), other non-current liabilities and trade and other current liabilities (excluding accrued interest expense). Capital expenditure EUR million Q1 2025 2024 Q4 2024 Q3 2024 Q2 2024 Q1 2024 Foodservice Packaging 4.7 66.3 31.0 17.0 12.9 5.4 North America 12.3 83.9 31.0 21.2 17.1 14.6 Flexible Packaging 5.7 69.0 31.4 12.7 12.3 12.6 Fiber Packaging 7.4 28.1 20.3 -1.5 5.8 3.5 Other activities - 0.5 0.1 - - 0.5 Total 30.1 247.9 113.8 49.4 48.1 36.6
Page 25
Interim Report Q1 2025 | 25 Other information Key indicators Q1 2025 2024 Q1 2024 Equity per share (EUR) 19.27 19.45 18.23 ROE, % (12m roll.) 12.4% 11.6% 11.0% ROI, % (12m roll.) 11.2% 10.8% 10.7% Net debt (EUR million) 1,252.4 1,215.7 1,249.2 Net debt to equity (gearing) 0.59 0.57 0.62 Personnel 17,819 17,794 17,868 Profit before taxes (EUR million, 12m roll.) 323.8 300.5 299.9 Depreciation of tangible assets (EUR million) 50.9 203.0 53.8 Amortization of other intangible assets (EUR million) 5.2 18.9 4.9 Impairments (EUR million) - 1.4 1.4 Contingent liabilities EUR million Mar 31, 2025 Dec 31, 2024 Mar 31, 2024 Capital expenditure commitments 55.6 71.3 71.9 Lease commitments 79.8 77.8 66.8 Financial instruments measured at fair value EUR million Mar 31, 2025 Dec 31, 2024 Mar 31, 2024 Derivatives - assets Currency forwards, transaction risk hedges 1.7 3.2 1.5 Currency forwards, translation risk hedges - 0.1 - Currency forwards, for financing purposes 5.8 11.2 2.7 Interest rate swaps 8.2 8.2 4.8 Options 0.0 0.1 - Commodity hedges 0.1 0.4 0.2 Other investments 3.2 2.8 2.0 Derivatives - liabilities Currency forwards, transaction risk hedges 1.0 2.0 1.3 Currency forwards, translation risk hedges 0.3 7.9 2.0 Currency forwards, for financing purposes 9.0 3.7 2.0 Interest rate swaps 2.5 2.4 - Options 0.1 0.2 - Commodity hedges 0.2 - - The fair values of the financial instruments measured at fair value have been indirectly derived from market prices. Other investments include quoted and unquoted shares. Quoted shares are measured at fair value. For unquoted shares the fair value cannot be measured reliably, as a result of which the investments are carried at cost. Interest-bearing liabilities Mar 31, 2025 Dec 31, 2024 Mar 31, 2024 EUR million Carrying amount Fair value Carrying amount Fair value Carrying amount Fair value Non-current 1,324.7 1,340.2 1,329.1 1,333.3 1,409.3 1,428.8 Current 235.0 235.2 232.8 232.6 212.2 211.2 Total 1,559.8 1,575.4 1,561.9 1,565.9 1,621.5 1,640.1
Page 26
Interim Report Q1 2025 | 26 Exchange rates The exchange rates used at the month end are the rates of the date prior to the last working day of the month. Income statement, average: Statement of financial position, month end: Q1 2025 Q1 2024 Mar 31, 2025 Mar 31, 2024 AUD 1.6763 1.6508 AUD 1.7120 1.6600 GBP 0.8357 0.8564 GBP 0.8336 0.8577 INR 91.1186 90.1754 INR 92.3460 90.1340 THB 35.7008 38.7069 THB 36.6640 39.3810 USD 1.0518 1.0861 USD 1.0797 1.0816 ZAR 19.4532 20.5041 ZAR 19.6113 20.4716 Definitions for performance measures Performance measures according to IFRS Earnings per share (EPS) attributable to equity holders of the parent company = Profit for the period – non-controlling interest Average number of shares outstanding Diluted earnings per share (diluted EPS) attributable to equity holders of the parent company = Diluted profit for the period – non-controlling interest Average fully diluted number of shares outstanding Alternative performance measures EBITDA = EBIT + depreciation, amortization and impairment Net debt to equity (gearing) = Interest-bearing net debt Total equity Return on net assets (RONA) = 100 x EBIT (12m roll.) Net assets (12m roll.) Operating cash flow = Adjusted EBIT + depreciation + amortization + impairment - capital expenditure + disposals +/- change in inventories, trade receivables and trade payables Shareholders' equity per share = Total equity attributable to equity holders of the parent company Issue-adjusted number of shares at period end Return on equity (ROE) = 100 x Profit for the period (12m roll.) Total equity (average) Return on investment (ROI) = 100 x (Profit before taxes + interest expenses + net other financial expenses) (12m roll.) Statement of financial position total - interest-free liabilities (average) Comparable net sales growth = Net sales growth excluding foreign currency changes, acquisitions and divestments Net debt to adjusted EBITDA = Interest-bearing net debt Adjusted EBITDA (12m roll.) In addition to IFRS and alternative performance measures presented above, Huhtamaki may present adjusted performance measures , which are derived from IFRS or alternative performance measures by adding or deducting items affecting comparability (IAC). The adjusted performance measures are used in addition to, but not substituting, the performance measures reported in accordance with IFRS. Huhtamäki Oyj, Revontulenkuja 1, FI-02100 Espoo, Finland Tel +358 (0)10 686 7000, Fax +358 (0)10 686 7992, www.huhtamaki.com Domicile: Espoo, Finland, Business Identity Code: 0140879-6