Overview


The Group’s trading conditions remained relatively stable throughout 2012 despite general economic uncertainty. Demand for consumer packaging was healthy during the first half of the year, but weakened during the second half of the year. Customer cautiousness was evident throughout the year, with increased focus on keeping order sizes small and stocks low. Raw material price levels stabilized compared to 2011.

The Group’s net sales grew by a healthy 14% in 2012 compared to the previous year, led by the impact of acquisitions completed in 2011 and 2012. Full year net sales were EUR 2,335 million (EUR 2,044 million). Reported net sales growth of the Group for the year was EUR 291 million, of which the units acquired accounted for EUR 165 million.The Group’s organic growth was 3% measured in constant exchange rates. Organic growth was strongest in the North America and Molded Fiber business segments. Foreign currency movements had a favorable impact on the Group’s net sales development.

The Group’s earnings before interest and taxes (EBIT) also grew significantly in 2012. EBIT for the year was EUR 162 million whereas in 2011 EBIT was EUR 121 million (including a net non-recurring charge of EUR 7 million). Earnings development was strongest in the Foodservice Europe-Asia-Oceania business segment, mainly resulting from successful restructuring activities and contribution of the acquired units.

The Group’s free cash flow development was solid during the year and free cash flow for the full year was EUR 103 million (EUR 65 million). Return on investment (ROI) was 11.9% (9.8%) and return on equity (ROE) was 15.0% (11.0%).

The implementation of the Group’s strategic direction focused on quality growth was continued during the year and three new strategic and growth enhancing acquisitions were completed. A major foodservice packaging supplier was acquired in Asia, a paper tableware manufacturer in the United States and a manufacturer of high-end labels in India. The Group continued the integration of the businesses acquired in 2011.

The closure of a Flexible Packaging manufacturing unit in New Zealand was finalized at the end of July.