Mayr-Melnhof Karton AG: MM Reports 2023 Annual Results with Mixed Performances Across Divisions

Mayr-Melnhof Karton AG (MM), a leading firm in the paper and cartonboard industry, has announced its annual results for 2023, evident of a challenging year. The company recorded earnings below the previous year’s record level, attributing the decline primarily to a sharp decrease in demand and significant downtime, both market and capex-related, at its MM Board & Paper division. Conversely, MM Packaging division showcased strong profit performance.

The Group launched an extensive modernisation programme for MM Board & Paper to enhance competitiveness and successfully integrated recent acquisitions in the pharmaceutical packaging sector, demonstrating resilience. Despite these efforts, the adjusted operating profit plunged to EUR 229.2 million from EUR 562.4 million in 2022, highlighting the divisional disparities. MM's overall sales saw a decline of 11.1% from the previous year, amounting to EUR 4,164.4 million.

MM CEO Peter Oswald reflected on the year’s outcome as significantly impacted by reduced demand, inflation-induced changes in consumer behavior, and an economic downturn within their main European markets. However, the profit & cash protection plan initiated in 2023 has notably reduced net debt and, alongside a proposed dividend of EUR 1.50 per share, signals the company’s adaptation strategies and commitment to its dividend policy.

The report forecasts a gradual recovery in demand for MM Board & Paper, yet anticipates continued pressure on margins. With the strategic focus on competitiveness and cost management, MM is poised to navigate the persisting challenging market conditions. The annual report is scheduled for release on April 3, 2024.