Finland-based sustainable packaging provider Huhtamäki has registered net sales of €1.05bn ($1.169bn) in the second quarter (Q2) of the financial year 2023 (FY23).

This reflects an 8% decline in the company’s net sales from €1.147bn in Q2 FY22.

For the reported quarter, which ended on 30 June 2023, the company’s comparable net sales growth in group levels, as well as in the emerging markets, was -2%.

The packaging company claimed that this decline in net sales can be attributed to changes in currencies and a decrease in sales volumes.

Huhtamäki also said that it was ‘negatively impacted’ by the divestment of its Russian operations.

In Q2 FY23, Huhtamäki’s adjusted earnings before interest and taxes (EBIT) was €93m, showcasing a decrease of 10% from €103m in Q2 FY22.

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The reported EBIT for Q2 FY23 meanwhile, was down by 43% to €55m from €97m in the previous year’s Q2.

Huhtamäki president and CEO Charles Héaulmé said: “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 Q2, although at a lower level than during the first quarter.

“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.”

This downward trajectory was also witnessed in the first half (H1) of FY23, ending on 30 June, with a 4% decrease in the company’s net sales to €2.099bn from €2.197bn in H1 FY22.

The Finnish company recorded 0% comparable net sales growth at the group level during H1 this year while it was 18% during the same period in 2022. The comparable sales growth in emerging markets in H1 FY23 was -1%.

Huhtamäki’s adjusted EBIT in H1 FY23 stood at €185m, down by 8% from €200m in H1 FY22.

The company recently announced an investment in its facility in Paris, a city in Texas, US, to further boost its North American business segment’s capacity in folding cartons.