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12.11.2020 – 08:00

Mayr-Melnhof Karton AG

EANS-News: Mayr-Melnhof Karton AG
Results for the first three quarters of 2020

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Quarterly Report

Vienna -

* Continuous business development
* Sales close to the previous year's level
* Earnings below previous year due to market and structural one-off effects
* Resilience through concentration on system-relevant packaging products
* Strategic focus: cost optimization and growth



The Mayr-Melnhof Group was able to carry on the overall continuous business
development in 2020 with solid volume and cash flow development in the 3rd
quarter. The focus on system-relevant products, cartonboard and cartonboard
packaging for consumer staples, shows a certain resilience despite challenging
conditions. A sharp rise in orders at the start of the pandemic at the beginning
of the 2nd quarter was followed by largely normalized demand over the course of
the year.

While sales in the first three quarters almost reached again the previous year's
level, the earnings figures are, as expected, below those of the previous year,
due to one-off effects resulting mainly from necessary market and structural
adjustments. As of the end of September 2020, these impact the operating result
with accumulated EUR 57.5 million, a large part of which is attributable to
depreciation and amortization of non-current assets.

In the cartonboard division, especially favorable raw material costs as well as
a consistent pricing policy contributed to a positive development in the on-
going business. The packaging division proved to be robust, mainly due to the
overall good volume development.

Cost optimization and deeper market penetration are the focus of the MM Group
with the aim of sustainably combining growth and profitability in a highly
competitive market environment. The related investment, innovation and
acquisition activities will be intensified.

As already indicated, the annual result is expected to be lower than in the
previous year due to one-off effects.

Group Key indicators - IFRS
Consolidated, in millions of EUR 1-3Q/2020 1-3Q/2019 +/-
Sales 1,903.5 1,924.3 -1.1 %
EBITDA 307.1 297.2 +3.3 %
Operating Profit 169.3 195.6 -13.4 %
Operating margin (in %) 8.9 % 10.2 % -127 bp
Profit before tax 160.6 194.2 -17.3 %
Profit for the period 116.3 146.3 -20.5 %
Earnings per share (in EUR) 5.78 7.29


At EUR 1,903.5 million, the Group's consolidated sales almost reached again the
previous year's level (1-3Q 2019: EUR 1,924.3 million).

The operating profit of EUR 169.3 million was 13.4 % or EUR 26.3 million below
last year's figure (1-3Q 2019: EUR 195.6 million). This includes one-off
expenses of EUR 57.5 million from necessary market and structural adjustments as
well as the termination agreement with the former CEO. Thereof, EUR 38.5 million
is attributable to the cartonboard division and EUR 19.0 million to the
packaging division. As a result, depreciation and amortization increased from
EUR 101.6 million to EUR 137.8 million.

The Group's operating margin amounted to 8.9 % (1-3Q 2019: 10.2 %).

Financial income of EUR 1.0 million (1-3Q 2019: EUR 1.0 million) contrasted with
financial expenses of EUR -5.4 million (1-3Q 2019: EUR -6.3 million). The "Other
financial result - net" accounted for EUR -4.2 million (1-3Q 2019: EUR 3.9
million), mainly due to changes in the foreign currency result.

Profit before tax was thus EUR 160.6 million, compared to EUR 194.2 million in
the previous year. Income tax expense amounted to EUR 44.3 million (1-3Q 2019:
EUR 47.9 million), resulting in an effective Group tax rate of 27.6 % (1-3Q
2019: 24.7 %).

Profit for the period hence declined from EUR 146.3 million to EUR 116.3
million.


DEVELOPMENT IN THE 3rd QUARTER
Due to a well-stocked supply chain, order intake at MM Karton has weakened as
expected during the course of the 3rd quarter. At 95 %, the capacity utilization
of the cartonboard division was below the level of the previous quarter and
previous year (2Q 2020: 99 %; 3Q 2019: 98 %), however, mainly resulting from a
planned rebuilt at the German Gernsbach mill. In contrast, MM Packaging's order
situation remained overall stable, with growth in consumer staples (fast-moving
consumer goods) being offset by lower volumes in high-value markets such as
duty-free, premium and cosmetics.

Consolidated sales of EUR 637.0 million were slightly above the preceding
quarter, however, below the previous year's figure (2Q 2020: EUR 619.9 million;
3Q 2019: EUR 648.8 million). Operating profit reached EUR 46.8 million (2Q 2020:
EUR 57.9 million; 3Q 2019: EUR 71.6 million) and was affected by one-off
expenses of EUR 28.0 million. Thereof, EUR 21.0 million is attributable to the
cartonboard division due to decommissioning of the board machine in Hirschwang,
Austria, and about EUR 7.0 million to the packaging division owing to structural
adjustment measures. The Group's operating margin thus amounted to 7.3 % (2Q
2020: 9.3 %; 3Q 2019: 11.0 %). The profit for the period was at EUR 31.4 million
(2Q 2020: EUR 39.8 million; 3Q 2019: EUR 54.0 million).

The cartonboard division achieved an operating margin of 3.5 % (2Q 2020: 9.6 %;
3Q 2019: 11.0 %). The operating margin of the packaging division was 9.3 % (2Q
2020: 8.4 %; 3Q 2019: 10.3 %).

OUTLOOK

The impact of the Covid-19 pandemic and the associated sharp economic downturn
on our business and supply chain still remain difficult to assess. However, due
to the focus of our business activities on system-relevant packaging products
for consumer staples, a certain resilience should continue to prevail. The
current development of the order backlog at normal levels signals continuity but
also short-term visibility. For the strategic raw material recovered paper,
increasing price volatility is anticipated due to the corona situation.

The annual result continues to be expected below the previous year due to one-
off effects.

The focus on optimizing cost structures and increasing market penetration will
be consistently continued. Related investment, innovation and acquisition
activities will be intensified.


Please find the detailed Press Release and the Report for the first three
quarters of 2020 as well as the CEO Audio-Webcast on our website:
www.mayr-melnhof.com.








Further inquiry note:
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

end of announcement                         euro adhoc
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issuer:       Mayr-Melnhof Karton AG
              Brahmsplatz 6
              A-1040 Wien
phone:        +43 1 50 136
FAX:
mail:      investor.relations@mm-karton.at
WWW:       www.mayr-melnhof.com
ISIN:         AT0000938204
indexes:      ATX, ATX PRIME
stockmarkets: Wien
language:     English