Huhtamaki, a Finnish food packaging supplier, has reported a 3% decline in net sales to €2.04bn ($2.21bn) in the first half (H1) of financial 2024 (FY24), compared to €2.09bn in H1 FY23.
Despite the decrease in sales, the company’s earnings per share (EPS) saw a significant increase of 35% to €0.97, against €0.72 in the first half of FY23.
The company’s H1 earnings before interest and taxes (EBIT) also rose by 28% to €182m, compared to €142m in the corresponding period of the previous year.
Huhtamaki’s H1 earnings before interest, taxes, depreciation, and amortisation (EBITDA) rose as well, showing a 10% increase to €295.8m from €270.1m year-on-year.
In the second quarter (Q2) of FY24, the company’s net sales saw a slight decrease of 1% to €1.03bn, down from €1.05bn in Q2 FY23.
Comparable net sales growth at the group level was reported at -1% over the quarter.
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However, the company’s EPS for the quarter was €0.62, a substantial improvement from €0.24 in Q2 FY23.
The reported EBIT for the second quarter stood at €104.6m in FY24, marking a 91% increase from €54.7m in the second quarter of FY23.
During the quarter, Huhtamaki’s EBITDA rose by 20% to €158.2m, up from €132.1m in the prior year’s quarter.
Huhtamaki president and CEO Charles Héaulmé said: “During the second quarter, the business context remained largely consistent with the first quarter. We saw some signs of increasing demand, particularly for prepacked on-the-shelf products, with differences between geographies and categories. However, the pricing pressure in the value chain increased.
“The slow easing of inflation and unchanged interest rates continued to have an impact on demand during the second quarter. The ongoing Israel-Hamas war still affects global brands in some markets in the Middle East and Asia. International trade remains impacted by logistic disruptions linked to the Red Sea crisis. The cost environment remained overall favourable, with the exception of some raw materials costs and continued high labour inflation.”
Looking ahead, Huhtamaki expects trading conditions to improve compared to 2023, although volatility in the operating environment is anticipated to persist.
The company is also relying on its initiatives, including the ongoing savings and efficiency programme, to bolster its performance.
Last month, Huhtamaki announced the consolidation of its Flexible Packaging manufacturing sites in the United Arab Emirates.
