Mayr-Melnhof Karton AG: Results for the first quarter of 2020

DGAP-News: Mayr-Melnhof Karton AG / Key word(s): Quarter Results Mayr-Melnhof Karton AG: Results for the first quarter of 2020 14.05.2020 / 08:00 The issuer is solely responsible for the content of this announcement. Broadly continuous business development Profit increase due to significantly improved margin at MM Karton MM Packaging at previous year's level Due to short-term visibility no forecast for the current year The Mayr-Melnhof Group was able to close the first quarter of 2020 with a positive development of results, despite increasingly challenging conditions due to the Covid-19 pandemic. As a manufacturer of system-relevant products, cartonboard and cartonboard packaging for consumer staples, we recorded an overall good utilization and have been able to maintain production to a large extent. While sales in the first three months of 2020 remained stable compared to the previous year, the operating profit increased significantly. This is mainly due to a strong development in the cartonboard division, which was particularly supported by favorable raw material and energy costs as well as a good maintenance of selling prices. In contrast, results of the packaging division remained close to the previous year's level mainly due to changes in the product mix. The MM Group pursues highest possible continuity. However, due to short-term visibility and macroeconomic uncertainties, a more detailed assessment for the current year is not possible. The Management Board and Supervisory Board of Mayr-Melnhof Karton AG would like to thank all employees of the MM Group for their great commitment to maintain operations in this extraordinary situation due to Covid-19. GROUP KEY INDICATORS - IFRS in millions of EUR                                      1Q/2020          1Q/2019                +/- Sales                                                           646.6                  642.9               +0.6 % EBITDA                                                         98.9                    90.9               +8.8 % EBITDA margin (in %)                                   15.3 %                14.1% Operating profit                                             64.6                    57.2             +12.9 % Operating margin (in %)                               10.0 %                  8.9 % Profit before tax                                            62.8                    58.1                +8.1 % Income tax expense                                    (17.7)                 (14.4) Profit for the period                                       45.1                   43.7                +3.2 % Earnings per share (in EUR)                           2.25                  2.17 The Group's consolidated sales amounted to EUR 646.6 million, slightly above the comparable figure for the previous year (1Q 2019: EUR 642.9 million). EBITDA increased by 8.8 % to EUR 98.9 million (1Q 2019: EUR 90.9 million). The operating profit rose by 12.9 % or EUR 7.4 million to EUR 64.6 million (1Q 2019: EUR 57.2 million) and includes a liability recognized as expenses for the termination agreement with the former CEO in the amount of EUR -8.6 million, which was booked in equal shares in the divisions.   In the first quarter of the previous year, one-off acquisition effects from the initial consolidation of the Tann-Group due to the recognition of the order backlog and inventory valuation were recorded in the amount of around EUR -7 million. The Group's operating margin increased to 10.0 % after 8.9 % in the comparable period. Financial income totaling EUR 0.4 million (1Q 2019: EUR 0.4 million) contrasted with financial expenses of EUR -2.1 million (1Q 2019: EUR -2.0 million). The "Other financial result - net" amounted to EUR -0.1 million after EUR 2.5 million, whereby the previous year's figure was increased primarily by foreign currency gains. Profit before taxes rose by 8.1 % to EUR 62.8 million (1Q 2019: EUR 58.1 million). Income tax expense amounted to EUR 17.7 million (1Q 2019: EUR 14.4 million). This results in an increase of the effective Group tax rate to 28.2 % (1Q 2019: 24.8 %), which is mainly due to the tax effect of the liability for the termination agreement. Profit for the period thus went up by 3.2 % to EUR 45.1 million (1Q 2019: EUR 43.7 million). OUTLOOK The macroeconomic consequences of the Covid-19 pandemic and the associated impact on our business remain difficult to assess. For certain, a recession is imminent whose extent, duration and development cannot be predicted. Even if the demand for our products, cartonboard and cartonboard packaging for consumer staples, has a certain resilience and is currently doing well overall, it is difficult for us to assess how much is attributable to end-consumption or stockpiling. On the cost side, we are facing price increases for the important raw material of recovered paper, which we are countering with higher prices for recycled fiber-based cartonboard. Due to short-term visibility and macroeconomic uncertainties, a further assessment for the current year is not possible at the moment. In any case, sustained investment activity should further strengthen the competitiveness of MM. Please find the detailed Press Release and the Report for the 1st Quarter of 2020 on our homepage http://www.mayr-melnhof.com. Forthcoming Results: August 20, 2020    Half-Year Results 2020 For further information, please contact: Stephan Sweerts-Sporck Investor Relations Mayr-Melnhof Karton AG Brahmsplatz 6 A-1040 Vienna Tel.: [phone] Fax: [phone] E-Mail: [e-mail] Website: https://www.mayr-melnhof.com 14.05.2020 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. The DGAP Distribution Services include Regulatory Announcements, Financial/Corporate News and Press Releases. Archive at www.dgap.de

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:	[e-mail]
Internet:	www.mayr-melnhof.com
ISIN:	AT0000938204
WKN:	93820
Indices:	ATX
Listed:	Regulated Unofficial Market in Berlin, Frankfurt (Basic Board), Munich, Stuttgart; Vienna Stock Exchange (Official Market)
EQS News ID:	1044209

End of News	DGAP News Service

1044209  14.05.2020