Profits of Mayr-Melnhof surge notably in the initial half of 2025
Mayr-Melnhof Karton AG (MM) has announced impressive financial results for the first half of 2025, with a 29% increase in adjusted operating result to €116.7 million. The period surplus also saw a substantial boost, rising to €164.3 million, compared to €37.4 million in the previous year.
Despite revenue remaining nearly stable at €2.03 billion, the growth in earnings can be largely attributed to the Board & Paper division. The division's revenue increased to €1.0 billion, with adjusted operating profit turning from a deficit of €11.1 million in the previous year to a positive €14.8 million. The increase was primarily driven by cost savings.
The Board & Paper division played a significant role in the improved earnings, contributing positively to MM's overall performance. The period's strong results are a testament to the division's resilience and the effectiveness of the cost-cutting measures implemented.
Peter Oswald, the CEO of Mayr-Melnhof Karton AG, who is coordinating the implementation of the "Fit-for-Future" program, commented on the launch of this Group-wide profit improvement program in 2025. The program, which is a response to the persistent weak market conditions, aims to achieve a structural and sustainable improvement in earnings of more than €150 million by 2027 compared to 2024 (excluding Tann). The program is expected to run until 2027.
The Tann Group, which was fully deconsolidated in the second half of the year, does not form part of the program or the reported results. The sale of the Tann Group in June generated a one-time gain of approximately €127 million.
The Pharma & Healthcare Packaging division's revenue was nearly at the previous year's level at €320.8 million, with operating profit decreasing slightly to €18.9 million. Meanwhile, the Food & Premium Packaging division's revenue decreased slightly to €813.3 million, with adjusted operating profit remaining stable at €83.0 million.
MM expects headwinds from maintenance shutdowns at pulp mills in Poland and Finland. Despite these challenges, investments are expected to remain below €250 million in 2025.
As MM continues to navigate the challenging market conditions, the successful implementation of the "Fit-for-Future" program and the strong performance of the Board & Paper division provide a promising outlook for the company's future.
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