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Huhtamäki Oyj reports stable performance in a challenging market

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ESPOO, Finland – Huhtamäki Oyj, a key leading global player in sustainable food-on-the-go and food-on-the-the-shelf packaging solutions, released today (July 20, 2023) its half -yearly report for the period January 1–June 30, 2023, showing a stable performance in a challenging market. Net sales decreased 4% to EUR 2,099 million (EUR 2,197 million).

Adjusted EBIT of Huhtamäki Oyj was EUR 185 million (EUR 200 million); reported EBIT was EUR 142 million (EUR 190 million). Adjusted EPS was EUR 1.06 (EUR 1.26); reported EPS was EUR 0.72 (EUR 1.21).

Comparable net sales growth at Group level was 0% and -1% in emerging markets. The impact of currency movements on the Group’s net sales was EUR -39 million and EUR -2 million on EBIT. Capital expenditure was EUR 134 million (EUR 128 million). Free cash flow was EUR 71 million (EUR -66 million).

Huhtamäki Oyi: Q2 2023 in brief

  • Net sales decreased 8% to EUR 1,052 million (EUR 1,147 million)
  • Adjusted EBIT was EUR 93 million (EUR 103 million); reported EBIT was EUR 55 million (EUR 97 million)
  • Adjusted EPS was EUR 0.55 (EUR 0.63); reported EPS was EUR 0.24 (EUR 0.58)
  • Comparable net sales growth at Group level was -2% and -2% in emerging markets
  • The impact of currency movements on the Group’s net sales was EUR -38 million and EUR -3 million on EBIT

Charles Héaulmé, President and CEO of Huhtamäki Oyj, stated: “The market environment remained muted in the second quarter of 2023, as inflation affected consumption across categories and geographies. Destocking also continued to impact volumes during the second quarter, although at a lower level than during the first quarter.

Our financial performance in the second quarter was in line with the first quarter of 2023, however it was soft compared to last year. Market conditions remained challenging, resulting in lower sales volumes. Our comparable net sales decreased by 2% in the second quarter but remained stable during the first half of the year. Adjusted EBIT decreased by 10% in the second quarter and 8% during the first half of the year, mainly due to lower sales volumes and the divested operations in Russia. Free cash flow continued to improve, reaching EUR 28 million during the second quarter and EUR 71 million during the first half of the year, driven by reduced working capital.

During the second quarter, the North America segment delivered a strong adjusted EBIT. We also had solid performance by the Foodservice Europe-Asia-Oceania and Fiber Packaging segments. However, the Flexible Packaging segment continued to face decreased demand, particularly impacted by inflation.


We are taking decisive actions to improve the financial performance in the Flexible Packaging segment. These actions include optimizing our operating model, labor productivity and consolidating our manufacturing footprint. In June, we announced the intention to close the manufacturing site in Prague, Czech Republic. In India, we have also initiated the consolidation of our smaller manufacturing sites with our existing footprint. Across the Group, we have continued to actively address productivity, with a focus on machine utilization, material waste reduction and labor efficiency. Employee numbers are 1,700 lower than in the comparison period, driven by the Russian divestment and efficiency improvements to drive competitiveness.

At the same time, we continue to drive our 2030 strategy by investing in growth and innovation. In 2023, we are bringing new capacity to commercial production, including tableware in North America, fiber lids in Europe, egg packaging in North America and South Africa, and Nespresso home compostable coffee capsules produced in The Netherlands. We recently announced the expansion of our North America Foodservice capacity in Paris, Texas, to capture the growing demand for folding carton packaging. These projects illustrate our strategy to scale up our profitable core business and innovate for sustainable packaging solutions.”


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