Q2 2024 Huhtamaki Oyj Earnings Call Transcript
Key Points
- Huhtamaki Oyj (STU:HUKI) reported a 14% growth in adjusted EBIT, with a margin increase to 10.2% in Q2 2024, indicating strong profitability improvements.
- The company's cost-saving initiatives, part of a EUR100 million program, are ahead of schedule, contributing significantly to profit expansion.
- North America remains a strong market for Huhtamaki Oyj (STU:HUKI), with a notable EBIT margin improvement from 12% to 14%, driven by favorable cost conditions and strategic investments.
- The flexible packaging segment is showing positive signs with volume growth and a slight margin increase, reflecting the success of strategic innovations.
- Sustainability efforts are progressing well, with significant improvements in renewable electricity usage and waste reduction, aligning with long-term environmental goals.
- Sales decreased by 1% in Q2 2024, with a 3% decline in the first semester, impacted by high inflation and geopolitical tensions affecting demand.
- The on-the-go foodservice category experienced a temporary decline due to consumer arbitration amid high inflation in the hospitality sector.
- The fiber packaging segment faced setbacks due to a fire in Australia and avian flu in South Africa, impacting growth potential.
- Pricing pressure remains a challenge, particularly in the flexible packaging segment, due to competitive market conditions.
- The geopolitical situation, including the Gaza conflict and Red Sea crisis, has negatively impacted logistics and international trade, affecting sales in certain regions.
Good morning all and welcome to Huhtamaki's investor call for the second quarter of 2024. My name is Kristian Tammela, VP of IR. We have this morning released our results and as again, we will start with presentations by our President and CEO, Charles Héaulmé; followed by our CFO, Thomas Geust. And after that, we go to a Q&A session.
Before that, I'd like to remind everyone of the upcoming site visit at our site near Chicago on September 4. If you are interested, please feel free to reach out to the IR team. And with that, let's get started. I'm handing over to Charles.
Thank you, Kristian. Good morning to all of you, and thank you to all for joining us for this release of our second quarter results and first semester. I will start with a quick summary on our results and the business context for the second quarter, and I would say that in one word, I would summarize that Q2
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