The first three quarters of 2024 did not go well for the cardboard manufacturer Mayr-Melnhof. The company reported a huge profit drop on Tuesday, with pre-tax profits falling 40.4 percent to 70.9 million euros and net profit for the period falling 42.7 percent to 52.3 million euros.
Turnover fell by four percent to just under 3.1 billion euros and there were also declines on an operational level: the adjusted operating result fell by 33.7 percent to 126.3 million euros and the adjusted profit before interest, taxes, depreciation and amortization (EBITDA) fell by 17.6 percent to 295.7 million euros.
Prices remained low, costs rose
The reason given was sometimes lower prices and a simultaneous increase in costs. “As expected, the third quarter result was below both the previous quarter and the third quarter of the previous year due to planned annual maintenance shutdowns at Board & Paper, which mainly affected the pulp mills in Poland and Finland,” said CEO Peter. Oswald.
Stable development expected for the 4th quarter
However, for the fourth quarter of 2024, we now expect “stable development in the packaging divisions” and “a slightly positive result again at Board & Paper”, according to Oswald.
However, for 2025, he continued to predict “moderate demand dynamics in end markets” and “continued underutilization in the carton industry.” The packaging company wants to counter this in the future with improved margins and continued cash generation.
Source: Krone
I’m Ben Stock, a journalist and author at Today Times Live. I specialize in economic news and have been working in the news industry for over five years. My experience spans from local journalism to international business reporting. In my career I’ve had the opportunity to interview some of the world’s leading economists and financial experts, giving me an insight into global trends that is unique among journalists.
