Huhtamäki reports 6% increase in third-quarter net sales
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Huhtamäki reports 6% increase in third-quarter net sales

22 Oct 2021 (Last Updated October 22nd, 2021 15:27)

The company's net sales growth was driven by a recovery in demand for foodservice packaging.

Finnish packaging company Huhtamäki has reported net sales of €896.3m ($1bn) in the third quarter (Q3) of this year (FY21), representing a 6% growth from the same period a year earlier.

The company’s net sales for the first three quarters grew by 3% to €2.6bn, up from €2.5bn in the same period of last year (FY20).

Huhtamäki saw its adjusted earnings before interest and tax (EBIT) drop by 11% in Q3 to €76.3m, which the firm attributed to increased input costs.

Its profit for the quarter was €42m, down from €47m in the same quarter a year ago, while its adjusted earnings per share (EPS) was €0.51, a decrease from €0.56 in Q3 2020.

Huhtamäki reported comparable sales growth of 4% in Q3 2021.

The company said that the net sales growth was driven by the continued recovery in demand for foodservice packaging worldwide.

Huhtamäki president and CEO Charles Héaulmé said:During the third quarter of 2021, our net sales increased by 6% with a comparable sales growth of 4%.

“All our business segments contributed to our solid growth, particularly visible in emerging markets.

“At the Group level, comparable net sales growth from the beginning of the year was 6% compared to the previous year, with a double-digit growth in Foodservice Europe-Asia-Oceania with Q3 segment sales returning to pre-pandemic levels.”

Huhtamäki also said that its climate targets had been validated by the multinational Science Based Targets initiative.

In July, the company launched Push Tab paper, a renewable paper-based blister solution designed for the healthcare industry.

It also launched a line of ‘next-generation’ tube laminates with renewable content for use in the cosmetics and food sectors.

During Q3, Huhtamäki completed its previously announced acquisition of Turkey-based flexible packaging supplier Elif in a €412m cash and debt-free transaction.

The deal is intended to enhance Huhtamäki’s position in emerging markets and broaden its flexible packaging business and product range.