Huhtamäki Oyj’s Half-yearly Report January 1-June 30, 2025: Continued stable operational performance in a volatile environment
HUHTAMÄKI OYJ HALF-YEARLY REPORT 24.7.2025 AT 8:30 EEST
Q2 2025 in brief
- Net sales decreased 3% to EUR 1,007.5 million (EUR 1,037.5 million)
- Comparable net sales growth at Group level was 0%
- Reported EBIT was EUR 46.2 million (EUR 104.6 million); adjusted EBIT was EUR 103.1 million (EUR 105.5 million)
- Reported EPS was EUR 0.20 (EUR 0.62); adjusted EPS was EUR 0.63 (EUR 0.63)
- The impact of currency movements on the Group’s net sales was EUR -34 million and EUR -3 million on EBIT
H1 2025 in brief
- Net sales decreased 2% to EUR 2,009.1 million (EUR 2,041.4 million)
- Comparable net sales growth at Group level was -1%
- Reported EBIT was EUR 139.9 million (EUR 182.2 million); adjusted EBIT was EUR 201.5 million (EUR 204.3 million)
- Reported EPS was EUR 0.74 (EUR 0.97); adjusted EPS was EUR 1.21 (EUR 1.17)
- The impact of currency movements on the Group’s net sales was EUR -23 million and EUR -2 million on EBIT
- Capital expenditure was EUR 73.2 million (EUR 84.7 million)
- Free cash flow was EUR 63.1 million (EUR 91.8 million)
| EUR million | Q2 2025 | Q2 2024 | Change | H1 2025 | H1 2024 | Change | 2024 | |||||||
| Net sales | 1,007.5 | 1,037.5 | -3% | 2,009.1 | 2,041.4 | -2% | 4,126.3 | |||||||
| Comparable net sales growth | 0% | -1% | -1% | -2% | 0% | |||||||||
| Adjusted EBITDA1 | 154.6 | 156.4 | -1% | 306.6 | 305.4 | 0% | 622.2 | |||||||
| Margin1 | 15.3% | 15.1% | 15.3% | 15.0% | 15.1% | |||||||||
| EBITDA | 176.1 | 158.2 | 11% | 325.9 | 295.8 | 10% | 595.6 | |||||||
| Adjusted EBIT2 | 103.1 | 105.5 | -2% | 201.5 | 204.3 | -1% | 416.9 | |||||||
| Margin2 | 10.2% | 10.2% | 10.0% | 10.0% | 10.1% | |||||||||
| EBIT | 46.2 | 104.6 | -56% | 139.9 | 182.2 | -23% | 372.3 | |||||||
| Adjusted EPS, EUR3 | 0.63 | 0.63 | 0% | 1.21 | 1.17 | 3% | 2.48 | |||||||
| EPS, EUR | 0.20 | 0.62 | -68% | 0.74 | 0.97 | -23% | 2.14 | |||||||
| Adjusted ROI2 | 11.9% | 11.9% | 12.1% | |||||||||||
| Adjusted ROE3 | 13.4% | 13.6% | 13.4% | |||||||||||
| ROI | 9.6% | 12.2% | 10.8% | |||||||||||
| ROE | 10.3% | 13.0% | 11.6% | |||||||||||
| Capital expenditure | 43.1 | 48.1 | -10% | 73.2 | 84.7 | -14% | 247.9 | |||||||
| Free Cash Flow | 85.5 | 53.6 | 60% | 63.1 | 91.8 | -31% | 215.8 | |||||||
| 1 Excluding IAC of | 21.5 | 1.8 | 19.3 | -9.5 | -26.5 | |||||||||
| 2 Excluding IAC of | -56.9 | -0.9 | -61.6 | -22.1 | -44.7 | |||||||||
| 3 Excluding IAC of | -44.5 | -0.7 | -49.0 | -21.6 | -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 calculated 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.
Ralf K. Wunderlich, President and CEO
The first half of 2025 was marked by significant uncertainty in the market environment, impacted by consumers’ cautiousness, geopolitical tensions, the US tariffs situation and a weakening US dollar. We continued to focus on executing our strategic priorities and strengthening our business for long-term sustainable growth.
Despite these challenges, our comparable net sales remained close to the previous year’s level both during the second quarter and the first half of the year. In the second quarter, sales volumes were at the previous year’s level. Adjusted EBIT decreased by 2% in the second quarter, including a 3% negative impact from currencies, mainly related to the weakening of the US dollar. For the first half of the year, adjusted EBIT decreased by 1%, and the negative currency impact was 1%. Adjusted EPS in the quarter remained at the previous year’s level.
During the second quarter, the adjusted EBIT margin in Flexible Packaging increased. This was driven by the segment’s actions to improve profitability, despite a decrease in net sales. Net sales in Fiber Packaging continued to grow, while the margin decreased slightly, partly impacted by a fire in one site in South Africa. The performance in North America was supported by strong growth in sales volumes. At the same time, the profitability was impacted by increased operational costs and a weaker dollar. In Foodservice Packaging, the challenging market situation continued, negatively impacting both net sales and adjusted EBIT.
We have progressed on our focus areas: profitable growth supported by all levers, disciplined capital allocation, and clear accountability enabling speed of execution. During the second quarter, we completed the organizational changes by aligning functions towards the segments and consolidating some positions within our corporate functions. With these changes, we streamlined decision-making and increased agility by reducing organizational complexity.
In April, we acquired Zellwin Farms, a US-based egg packaging manufacturer with approximately USD 20 million in annual net sales. The acquisition is in line with our focus on profitable growth and disciplined capital allocation, as the acquisition will be accretive from year 1. It will support our aspiration to be a leader in this category and deliver installed capacity to strengthen our manufacturing footprint.
We successfully completed the three-year EUR 100 million efficiency program launched in 2023 ahead of time, reaching the targeted cost savings with lower than expected costs. As part of the program, we made a restructuring in Q2 2025 in the Foodservice Packaging segment, consolidating production. The net impairment for this initiative was EUR 39 million.
We remain committed to navigating the uncertainties in the market with resilience and focus on returning to sales growth and continuously driving productivity. Increasing speed of execution through a streamlined organizational structure, combined with our clear growth strategy and disciplined capital allocation, position us well to deliver value to our stakeholders. I am confident in our team’s ability to build on this and drive sustainable, profitable growth.
Financial review Q2 2025
Net sales by business segment
| EUR million | Q2 2025 | Q2 2024 | Change | |
| Foodservice Packaging | 239.0 | 252.3 | -5% | |
| North America | 366.4 | 370.2 | -1% | |
| Flexible Packaging | 310.7 | 325.9 | -5% | |
| Fiber Packaging | 94.3 | 91.7 | 3% | |
| Elimination of internal sales | -3.0 | -2.7 | ||
| Group | 1,007.5 | 1,037.5 | -3% |
Comparable net sales growth by business segment
| Q2 2025 | Q1 2025 | Q4 2024 | Q3 2024 | Q2 2024 | |||||
| Foodservice Packaging | -4% | -4% | -1% | -7% | -6% | ||||
| North America | 3% | -3% | 2% | 3% | -2% | ||||
| Flexible Packaging | -2% | -2% | 5% | 0% | 2% | ||||
| Fiber Packaging | 10% | 10% | 12% | 8% | 3% | ||||
| Group | 0% | -2% | 3% | 0% | -1% |
The Group’s net sales decreased by 3% to EUR 1,007.5 million (EUR 1,037.5 million) during the quarter. Comparable net sales growth was 0%. Sales prices increased slightly and sales volumes remained close to the previous year’s level, while there was a negative impact from changes in currencies. Comparable net sales increased in the Fiber Packaging and North America segments, but decreased in Foodservice Packaging and Flexible Packaging. Foreign currency translation impact on the Group’s net sales was EUR -34 million (EUR -6 million) compared to 2024 exchange rates.
Adjusted EBIT by business segment
| Items affecting comparability | ||||||
| EUR million | Q2 2025 | Q2 2024 | Change | Q2 2025 | Q2 2024 | |
| Foodservice Packaging | 22.9 | 23.2 | -1% | -44.8 | 4.9 | |
| North America | 44.7 | 53.0 | -16% | -5.2 | -2.5 | |
| Flexible Packaging | 26.2 | 20.9 | 25% | -6.3 | -2.9 | |
| Fiber Packaging | 11.1 | 11.9 | -6% | 1.1 | -0.3 | |
| Other activities | -1.9 | -3.5 | -1.7 | -0.1 | ||
| Group | 103.1 | 105.5 | -2% | -56.9 | -0.9 | |
Adjusted EBIT margin by business segment
| Q2 2025 | Q1 2025 | Q4 2024 | Q3 2024 | Q2 2024 | |
| Foodservice Packaging | 9.6% | 8.5% | 9.9% | 8.5% | 9.2% |
| North America | 12.2% | 11.7% | 13.7% | 13.8% | 14.3% |
| Flexible Packaging | 8.4% | 8.1% | 8.4% | 7.3% | 6.4% |
| Fiber Packaging | 11.8% | 12.8% | 15.2% | 9.2% | 12.9% |
| Group | 10.2% | 9.8% | 10.4% | 10.0% | 10.2% |
The Group’s adjusted EBIT decreased to EUR 103.1 million (EUR 105.5 million) and reported EBIT was EUR 46.2 million (EUR 104.6 million) in the quarter. Adjusted EBIT decreased, weighed on by the negative impact from currencies, increased labor and transportation costs, as well as information technology (IT) investments On the other hand, the increase in sales prices had a positive impact. The Group’s adjusted EBIT margin remained at the previous year’s level and was 10.2% (10.2%). Foreign currency translation impact on the Group’s earnings was EUR -3 million (EUR -1 million).
Adjusted EBIT excludes EUR -56.9 million (EUR -0.9 million) of items affecting comparability (IAC). The main item was a net impairment of EUR 39 million, inclusive of contractual compensations. This was related to a restructuring in the Foodservice Packaging segment, consolidating production.
Adjusted EBIT and IAC
| EUR million | Q2 2025 | Q2 2024 | |
| Adjusted EBIT | 103.1 | 105.5 | |
| Acquisition related costs | -0.3 | -1.1 | |
| Restructuring gains and losses, including writedowns of related assets | -52.9 | 4.2 | |
| PPA amortization | -2.1 | -2.2 | |
| Settlement and legal fees of disputes | -0.0 | -0.0 | |
| Property damage incidents | 1.3 | -0.3 | |
| Implementation costs concerning large projects with SaaS cloud computing technology | -2.9 | -1.5 | |
| EBIT | 46.2 | 104.6 |
Net financial expenses were EUR 15.2 million (EUR 16.2 million) in the quarter. Tax expense was EUR 8.1 million (EUR 20.8 million), due to a decrease in reported profit. Profit for the quarter was EUR 22.8 million (EUR 67.7 million). Adjusted earnings per share (EPS) was EUR 0.63 (EUR 0.63) and reported EPS EUR 0.20 (EUR 0.62). Adjusted EPS is calculated based on adjusted profit for the period attributable to equity holders of parent company, which excludes EUR -44.5 million (EUR -0.7 million) of IAC.
Adjusted profit and IAC
| EUR million | Q2 2025 | Q2 2024 | |
| Adjusted profit for the period attributable to equity holders of the parent company | 65.6 | 65.7 | |
| IAC in EBIT | -56.9 | -0.9 | |
| IAC in Financial items | 0.2 | 0.3 | |
| IAC Tax | 12.1 | 0.7 | |
| IAC attributable to non-controlling interest | 0.2 | -0.8 | |
| Profit for the period attributable to equity holders of the parent company | 21.1 | 65.0 |
Financial review H1 2025
Net sales by business segment
| EUR million | H1 2025 | H1 2024 | Change | |
| Foodservice Packaging | 473.2 | 493.4 | -4% | |
| North America | 712.0 | 714.3 | 0% | |
| Flexible Packaging | 639.4 | 661.1 | -3% | |
| Fiber Packaging | 190.1 | 176.7 | 8% | |
| Elimination of internal sales | -5.7 | -4.2 | ||
| Group | 2,009.1 | 2,041.4 | -2% |
Comparable net sales growth by business segment
| H1 2025 | H1 2024 | H1 2023 | |||
| Foodservice Packaging | -4% | -6% | 8% | ||
| North America | 0% | -2% | 1% | ||
| Flexible Packaging | -2% | 1% | -8% | ||
| Fiber Packaging | 10% | 2% | 11% | ||
| Group | -1% | -2% | 0% |
The Group’s net sales decreased by 2% to EUR 2,009.1 million (EUR 2,041.4 million) during the reporting period, and comparable net sales growth was -1%. Despite somewhat higher sales prices, net sales were weighed on by changes in currencies and lower sales volumes. Comparable net sales increased in the Fiber Packaging segment, remained at the previous year’s level in North America, and decreased in Foodservice Packaging and Flexible Packaging. Foreign currency translation impact on the Group’s net sales was EUR -23 million (EUR -23 million) compared to 2024 exchange rates.
Adjusted EBIT by business segment
| Items affecting comparability | |||||||
| EUR million | H1 2025 | H1 2024 | Change | H1 2025 | H1 2024 | ||
| Foodservice Packaging | 42.7 | 45.3 | -6% | -45.2 | -11.4 | ||
| North America | 85.2 | 100.9 | -15% | -7.1 | -3.5 | ||
| Flexible Packaging | 52.8 | 42.5 | 24% | -9.1 | -5.3 | ||
| Fiber Packaging | 23.4 | 20.4 | 15% | 1.6 | -1.5 | ||
| Other activities | -2.6 | -4.8 | -1.9 | -0.4 | |||
| Group | 201.5 | 204.3 | -1% | -61.6 | -22.1 | ||
Adjusted EBIT margin by business segment
| Q2 2025 | Q1 2025 | Q4 2024 | Q3 2024 | Q2 2024 | |
| Foodservice Packaging | 9.6% | 8.5% | 9.9% | 8.5% | 9.2% |
| North America | 12.2% | 11.7% | 13.7% | 13.8% | 14.3% |
| Flexible Packaging | 8.4% | 8.1% | 8.4% | 7.3% | 6.4% |
| Fiber Packaging | 11.8% | 12.8% | 15.2% | 9.2% | 12.9% |
| Group | 10.2% | 9.8% | 10.4% | 10.0% | 10.2% |
The Group’s adjusted EBIT decreased to EUR 201.5 million (EUR 204.3 million) and reported EBIT was EUR 139.9 million (EUR 182.2 million). Adjusted EBIT decreased by 1%, due to the negative impact from unfavorable currency movements, lower sales volumes, increased labor costs and information technology (IT) investments. At the same time, the company’s actions to improve profitability had a positive impact. The Group’s adjusted EBIT margin remained at the previous year’s level at 10.0% (10.0%). Foreign currency translation impact on the Group’s earnings was EUR -2 million (EUR -2 million).
Adjusted EBIT excludes EUR -61.6 million (EUR -22.1 million) of items affecting comparability (IAC), including costs of implementing operational efficiency measures. The main item is a net impairment of EUR 39 million, inclusive of contractual compensations. This was related to a restructuring in the Foodservice Packaging segment, consolidating production.
Adjusted EBIT and IAC
| EUR million | H1 2025 | H1 2024 | ||
| Adjusted EBIT | 201.5 | 204.3 | ||
| Acquisition related costs | -0.3 | -1.1 | ||
| Restructuring gains and losses, including writedowns of related assets | -54.2 | -13.0 | ||
| PPA amortization | -4.4 | -4.4 | ||
| Settlement and legal fees of disputes | -0.0 | -0.1 | ||
| Property damage incidents | 2.0 | -0.8 | ||
| Implementation costs concerning large projects with SaaS cloud computing technology | -4.7 | -2.7 | ||
| EBIT | 139.9 | 182.2 |
Net financial expenses were EUR 29.4 million (EUR 37.5 million). Tax expense was EUR 28.7 million (EUR 38.5 million), due to a decrease in reported profit. The effective tax rate was 26% (27%). Profit for the period was EUR 81.8 million (EUR 106.2 million). Adjusted earnings per share (EPS) were EUR 1.21 (EUR 1.17) and reported EPS EUR 0.74 (EUR 0.97). Adjusted EPS is calculated based on adjusted profit for the period attributable to equity holders of parent company, which excludes EUR -49.0 million (EUR -21.6 million) of IAC.
Adjusted profit and IAC
| EUR million | H1 2025 | H1 2024 | |
| Adjusted profit for the period attributable to equity holders of the parent company | 127.0 | 122.9 | |
| IAC in EBIT | -61.6 | -22.1 | |
| IAC in Financial items | 0.4 | -0.2 | |
| IAC Tax | 12.0 | 1.4 | |
| IAC attributable to non-controlling interest | 0.3 | -0.8 | |
| Profit for the period attributable to equity holders of the parent company | 78.0 | 101.2 |
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.
Teleconference
Huhtamaki will arrange a combined audiocast and teleconference today at 9:30 EEST. Huhtamaki’s CEO & President Ralf K. Wunderlich and CFO Thomas Geust will present the results, followed by a Q&A session. The event will be held in English, and it can be followed in real-time.
A link to the audiocast is available at: https://huhtamaki.events.inderes.com/q2-2025
A link to the teleconference is available at: https://events.inderes.com/huhtamaki/q2-2025/dial-in. Registration is required for the teleconference. After the registration you will be provided with phone numbers and a conference ID to access the conference.
An on-demand replay of the audiocast will be available shortly after the end of the call at www.huhtamaki.com/investors/.
For further information, please contact:
Kristian Tammela, Vice President, Investor Relations, tel. +358 10 686 7058
HUHTAMÄKI OYJ
Corporate Communications
About Huhtamaki
Huhtamaki is a leading global provider of sustainable packaging solutions for consumers around the world. Our innovative products protect on-the-go and on-the-shelf food and beverages, and personal care products, ensuring hygiene and safety, driving accessibility and affordability, and helping prevent food waste. We embed sustainability in everything we do.
Huhtamaki has over 100 years of history and a strong Nordic heritage. Our around 18 000 professionals are operating in 36 countries and 101 locations around the world. Our values are Care Dare Deliver. In 2024 Huhtamaki’s net sales totaled EUR 4.1 billion. Huhtamäki Oyj is listed on the Nasdaq Helsinki and the head office is in Espoo, Finland. Find out more at www.huhtamaki.com.
Attachment
