HUHTAMÄKI OYJ FINANCIAL STATEMENT RELEASE 11.2.2021 AT 8:30
Huhtamäki Oyj’s Results January 1–December 31, 2020: Solid performance despite COVID-19 pandemic
Q4 2020 in brief
- Net sales decreased 7% to
EUR 813 million (EUR 875 million ) - Adjusted EBIT was
EUR 73 million (EUR 75 million ); reported EBIT wasEUR 48 million (EUR 72 million ) - Adjusted EPS was
EUR 0.48 (EUR 0.48 ); reported EPS wasEUR 0.30 (EUR 0.46 ) - Comparable net sales growth was -2% at Group level and -7% in emerging markets
- The impact of currency movements was
EUR -52 million on the Group’s net sales andEUR -5 million on EBIT
Q1-Q4 2020 in brief
- Net sales decreased 3% to
EUR 3,302 million (EUR 3,399 million ) - Adjusted EBIT was
EUR 302 million (EUR 293 million ); reported EBIT wasEUR 265 million (EUR 286 million ) - Adjusted EPS was
EUR 1.95 (EUR 1.88 ) reported EPS wasEUR 1.69 (EUR 1.82 ) - Comparable net sales growth was -2% at Group level and -6% in emerging markets
- The impact of currency movements was
EUR -89 million on the Group’s net sales andEUR -8 million on EBIT - Capital expenditure was
EUR 223 million (EUR 204 million ) - Free cash flow was
EUR 207 million (EUR 226 million ) - The Board of Directors proposes a dividend of
EUR 0.92 (0.89) per share
Key figures
EUR million | Q4 2020 | Q4 2019 | Change | 2020 | 2019 | Change | |
Net sales | 812.8 | 874.6 | -7% | 3,301.8 | 3,399.0 | -3% | |
Comparable net sales growth | -2% | 5% | -2% | 6% | |||
Adjusted EBITDA1 | 116.8 | 117.3 | -0% | 473.1 | 456.3 | 4% | |
Margin1 | 14.4% | 13.4% | 14.3% | 13.4% | |||
EBITDA | 101.4 | 115.0 | -12% | 464.5 | 448.8 | 4% | |
Adjusted EBIT2 | 72.8 | 74.7 | -2% | 302.1 | 293.1 | 3% | |
Margin2 | 9.0% | 8.5% | 9.1% | 8.6% | |||
EBIT | 47.9 | 72.3 | -34% | 265.3 | 285.5 | -7% | |
Adjusted EPS3 | 0.48 | 0.48 | 1% | 1.95 | 1.88 | 4% | |
EPS, EUR | 0.30 | 0.46 | -36% | 1.69 | 1.82 | -7% | |
Adjusted ROI2 | 11.7% | 12.3% | |||||
Adjusted ROE3 | 14.8% | 15.2% | |||||
ROI | 10.3% | 11.9% | |||||
ROE | 12.9% | 14.8% | |||||
Capital expenditure | 103.2 | 71.0 | 45% | 223.5 | 203.9 | 10% | |
Free Cash Flow | 57.5 | 108.7 | -47% | 207.1 | 225.8 | -8% | |
1Excluding IAC of | -15.4 | -2.3 | -8.6 | -7.6 | |||
2Excluding IAC of | -24.9 | -2.3 | -36.8 | -7.6 | |||
3Excluding IAC of | -19.3 | -1.8 | -26.2 | -5.9 |
Unless otherwise stated, all comparisons in this report are compared to the corresponding period in 2019. 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.
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.
Charles Héaulmé, President and CEO:
“The year 2020 was marked by the COVID-19 pandemic. Throughout the crisis our primary focus has been to safeguard the health, safety and wellbeing of our employees and to ensure business continuity under these exceptional circumstances. Despite the challenging operational environment, with COVID-19 impact on markets across the world, we delivered a solid performance overall. This reflects the resilience of our diversified portfolio and the ability of our company to manage challenging conditions.
Pandemic-driven restrictions and lockdowns had a negative impact on demand for food on-the-go products globally, but conversely drove higher consumption of food on-the-shelf products. The decline of in-restaurant dining was partly compensated by the fast-growing food delivery and take-away channels. In particular, our foodservice business was impacted negatively, whilst increased in-home consumption supported growth in consumer goods. In
Our net sales amounted to
The year 2020 was also the opportunity for us to celebrate Huhtamaki’s 100th anniversary. The celebrations were held in November with a series of virtual stakeholder events during “Founder’s week”. We introduced our new 2030 strategy and laid out high sustainability ambitions for this decade. Our focus is on creating value by delivering growth, improving competitiveness, developing talent while embedding sustainability in everything we do. Our ambition is to be the first choice in sustainable food packaging solutions. We have raised our external engagement through sustainability thought leadership initiatives and the deployment of local activities contributing to lowering the carbon footprint of our operations, such as increasing our use of renewable energy.
Throughout what proved to be a challenging year, we adapted to meet the transformative trends affecting our industry and responded to the challenges brought on by the pandemic. I am particularly proud of our entire team for taking proactive and focused actions, showing resilience in the face of COVID-19 and embarking on our journey to our 2030 Strategy.”
Financial review Q4 2020
Net sales by business segment
EUR million | Q4 2020 | Q4 2019 | Change | |
Foodservice | 213.5 | 245.3 | -13% | |
274.0 | 303.6 | -10% | ||
250.8 | 255.1 | -2% | ||
85.4 | 76.1 | 12% | ||
Elimination of internal sales | -10.8 | -5.5 | ||
Group | 812.8 | 874.6 | -7% |
Comparable net sales growth by business segment
Q4 2020 | Q3 2020 | Q2 2020 | Q1 2020 | Q4 2019 | ||
Foodservice | -7% | -1% | -28% | -4% | 4% | |
-2% | 4% | -5% | 9% | 6% | ||
0% | 1% | 2% | 2% | 3% | ||
8% | 7% | 10% | 9% | 8% | ||
Group | -2% | 2% | -8% | 3% | 5% |
The Group’s net sales decreased 7% to EUR 813 million (EUR 875 million) during the quarter. Comparable net sales growth was -2%. Net sales decreased mainly due to lower demand for foodservice packaging, following the impact of COVID-19. Solid demand continued for food on-the-shelf products. Growth was strong in the
Adjusted EBIT by business segment
Items affecting comparability | |||||||
EUR million | Q4 2020 | Q4 2019 | Change | Q4 2020 | Q4 2019 | ||
Foodservice | 15.5 | 20.9 | -26% | -10.5 | -0.2 | ||
32.2 | 33.1 | -3% | 0.1 | -0.1 | |||
17.9 | 18.8 | -5% | -0.5 | -0.6 | |||
12.7 | 7.5 | 70% | -3.5 | -0.2 | |||
Other activities | -5.5 | -5.6 | -10.5 | -1.2 | |||
Group | 72.8 | 74.7 | -2% | -24.9 | -2.3 |
Adjusted EBIT margin by business segment
Q4 2020 | Q3 2020 | Q2 2020 | Q1 2020 | Q4 2019 | ||
Foodservice | 7.3% | 9.4% | 3.7% | 8.0% | 8.5% | |
11.8% | 12.7% | 12.8% | 10.6% | 10.9% | ||
7.2% | 8.5% | 7.3% | 7.7% | 7.4% | ||
14.8% | 11.1% | 11.2% | 11.0% | 9.8% | ||
Group | 9.0% | 10.1% | 8.8% | 8.7% | 8.5% |
The Group’s adjusted EBIT decreased to EUR 73 million (EUR 75 million) and reported EBIT was
Adjusted EBIT excludes EUR -24.9 million (EUR -2.3 million) of items affecting comparability (IAC).
Adjusted EBIT and IAC
EUR million | Q4 2020 | Q4 2019 | |
Adjusted EBIT | 72.8 | 74.7 | |
Acquisitions | -0.4 | -1.0 | |
Restructuring costs including write-downs of related assets | -14.0 | - | |
Settlement of industrial dispute | -10.5 | - | |
Environmental provision | - | -1.0 | |
Losses from property damage incidents | - | -0.3 | |
EBIT | 47.9 | 72.3 |
Net financial expenses were
Adjusted profit and IAC
EUR million | Q4 2020 | Q4 2019 | |
Adjusted profit for the period attributable to equity holders of the parent company | 50.4 | 50.0 | |
IAC in EBIT | -24.9 | -2.3 | |
IAC in Financial items (related to reversal of contingent consideration related to acquisition) | - | - | |
Taxes relating to IAC | 5.6 | 0.5 | |
Profit for the period attributable to equity holders of the parent company | 31.0 | 48.2 |
Financial review 2020
Net sales by business segment
EUR million | 2020 | 2019 | Change | |
Foodservice | 829.1 | 956.7 | -13% | |
1,138.9 | 1,152.7 | -1% | ||
1,050.8 | 1,016.4 | 3% | ||
307.8 | 293.4 | 5% | ||
Elimination of internal sales | -24.8 | -20.2 | ||
Group | 3,301.8 | 3,399.0 | -3% |
Comparable net sales growth by business segment
2020 | 2019 | 2018 | ||
Foodservice | -10% | 4% | 4% | |
1% | 9% | 5% | ||
1% | 3% | 7% | ||
9% | 6% | 4% | ||
Group | -2% | 6% | 5% |
The Group’s net sales decreased 3% to
Adjusted EBIT by business segment
Items affecting comparability | |||||||
EUR million | 2020 | 2019 | Change | 2020 | 2019 | ||
Foodservice | 60.9 | 85.7 | -29% | -30.0 | -0.5 | ||
136.6 | 111.4 | 23% | -6.5 | -3.1 | |||
80.7 | 82.6 | -2% | -6.2 | -0.7 | |||
37.4 | 29.0 | 29% | -5.2 | -1.2 | |||
Other activities | -13.5 | -15.6 | 11.0 | -2.0 | |||
Group | 302.1 | 293.1 | 3% | -36.8 | -7.6 |
Adjusted EBIT margin by business segment
2020 | 2019 | 2018 | ||
Foodservice | 7.3% | 9.0% | 8.7% | |
12.0% | 9.7% | 7.3% | ||
7.7% | 8.1% | 7.1% | ||
12.2% | 9.9% | 11.0% | ||
Group Total | 9.1% | 8.6% | 8.1% |
The Group’s adjusted EBIT increased to EUR 302 million (EUR 293 million) and reported EBIT was
Adjusted EBIT excludes EUR -36.8 million (EUR -7.6 million) of items affecting comparability (IAC).
Adjusted EBIT and IAC
EUR million | 2020 | 2019 | |
Adjusted EBIT | 302.1 | 293.1 | |
Acquisitions | -1.0 | -2.2 | |
Restructuring costs including write-downs of related assets | -47.6 | - | |
Settlement of industrial dispute | -10.5 | - | |
One-time gain from acquisition of Laminor | 22.4 | - | |
Environmental provision | - | -1.0 | |
Losses from property damage incidents | - | -4.3 | |
EBIT | 265.3 | 285.5 |
Net financial expenses were
Adjusted profit and IAC
EUR million | 2020 | 2019 | |
Adjusted profit for the period attributable to equity holders of the parent company | 203.0 | 196.0 | |
IAC in EBIT | -36.8 | -7.6 | |
IAC in Financial items (related to reversal of contingent consideration related to acquisition) | 3.0 | - | |
Taxes relating to IAC | 7.6 | 1.7 | |
Profit for the period attributable to equity holders of the parent company | 176.8 | 190.1 |
Acquisitions and divestments
On
On
Significant events during the reporting period
On
On
On
Significant events after the reporting period
On
Outlook for 2021
The Group’s trading conditions are expected to improve compared to 2020, however with continued volatility in the operating environment. Huhtamaki's diversified product portfolio provides resilience and the Group’s good financial position enables addressing profitable growth opportunities.
Dividend proposal
On
Annual General Meeting 2021
The Annual General Meeting of Shareholders (AGM) will be held on
Financial reporting in 2021
In 2021, Huhtamaki will publish financial information as follows:
Interim Report,
Half-yearly Report,
Interim Report,
Annual Accounts 2020 will be published on the week commencing
This is a summary of Huhtamäki Oyj's Results January 1–December 31, 2020. The complete report is attached to this release and is also available at the company website at www.huhtamaki.com.
For further information, please contact:
HUHTAMÄKI OYJ
About Huhtamaki
Huhtamaki is a key global provider of sustainable packaging solutions for consumers around the world, enabling wellbeing and convenience. Our innovative products protect on-the-go and on-the-shelf food and beverages, ensuring hygiene and safety, and help prevent food waste. We embed sustainability in everything we do. We are committed to achieving carbon neutral production and designing all our products to be recyclable, compostable or reusable by 2030.
We are a participant in the
With 100 years of history and a strong Nordic heritage we operate in 36 countries and 81 sites around the world. Our values Care Dare Deliver guide our decisions and help our team of 18,200 employees make a difference where it matters. Our 2020 net sales totaled
Attachment
- Huhtamaki Oyj Results 2020
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