Almost 43 percent

Mayr-Melnhof Karton reports massive drop in profits

A printing press from Mayr-Melnhof Karton AG

(Bild: Mayr-Melnhof Karton AG)

The first three quarters of 2024 did not go well for the cartonboard manufacturer Mayr-Melnhof. The company reported a massive slump in earnings on Tuesday, with profit before taxes falling by 40.4 percent to EUR 70.9 million and net profit for the period dropping by 42.7 percent to EUR 52.3 million.

Turnover fell by four percent to just under 3.1 billion euros and there were also operational declines: the adjusted operating result fell by 33.7 percent to 126.3 million euros and adjusted earnings before interest, taxes, depreciation and amortization (EBITDA) fell by 17.6 percent to 295.7 million euros.

Prices remained low, costs increased
This was partly due to lower prices and a simultaneous increase in costs. "As expected, the result in the third quarter was below both the previous quarter and the third quarter of the previous year due to planned annual maintenance shutdowns at Board & Paper, which mainly affected the pulp mills in Poland and Finland," commented Group CEO Peter Oswald.

Stable development expected for the 4th quarter
For the fourth quarter of 2024, however, "stable development in the Packacking divisions" and a "slightly positive result again at Board & Paper" are now expected, said Oswald.

For 2025, however, he still predicted "subdued demand dynamics in the end markets" and "continued underutilization in the cartonboard industry". The packaging company intends to counteract this in future by improving margins and generating cash on an ongoing basis.