Q3 2024 Huhtamaki Oyj Earnings Call Transcript
Key Points
- Huhtamaki Oyj (STU:HUKI) reported a 2% improvement in adjusted EBIT compared to the previous year, driven by cost-saving measures.
- The company has successfully implemented a cost efficiency program, generating savings above the linear trajectory, with EUR18 million saved year-to-date.
- North American sales showed a 3% growth, indicating a recovery in demand, particularly in the food service sector.
- The fiber packaging segment experienced volume growth, especially in egg packaging, supported by additional capacity installations.
- Huhtamaki Oyj (STU:HUKI) has reduced capital expenditures by 30% year-to-date, supporting a solid cash flow position.
- Overall sales decreased by 1% in the third quarter, with food service packaging demand remaining soft due to high inflation.
- The company faces continued pricing pressure due to lower demand volumes and competitive market conditions.
- The flexible packaging segment showed significant variations in demand across different regions, with India and Turkey underperforming.
- The fiber packaging segment's profitability was temporarily subdued due to a 50% increase in recycled paper prices.
- Currency fluctuations, particularly with the Indian Rupee and Brazilian Real, negatively impacted financial results.
Good morning all and welcome to Huhtamaki Investor call for 3rd quarter of 2024. My name is Kristian Tammela, VP of IR. Following our normal procedure, we will start with presentations by our President and CEO Charles Heaulme and our CFO Thomas Geust. After that, we will have a Q&A session. With that, let's get started and handing over to Charles.
Thank you, Kristian, good morning to all of you and thank you for joining our session today for the Q3 2024 result. Where we are delivering a solid profitability in a gradually improved market. I'll jump straight ahead on the summary for the quarter. Starting with a few comments on the market trends where we have seen market conditions improving slightly.
However, with differences between geographies and categories will come. Of course, back to this point. For instance, we have seen improvement in the categories; on-the-shelf
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