Overview


The Group’s trading conditions remained relatively stable during 2013 despite general economic uncertainty and customer cau-tiousness. Start of the year was slow but demand for consumer packaging improved as the year progressed and was reasonably good at year-end. Currency fluctuations were unfavorable for the full year and especially during the second half. Raw material price levels remained relatively stable.

The Group’s reported net sales in 2013 were EUR 2,342 million (EUR 2,321 million). Organic net sales growth in constant curren-cies was 3% with all business segments, except Films, reporting growth. Organic net sales growth was strongest in the Molded Fiber business segment. In the emerging markets, organic growth in constant currencies was 8%. Growth accelerated towards the year-end and during the fourth quarter the Group’s organic net sales growth in constant currencies was 6% and in the emerg-ing markets 14%. The Group’s net sales were negatively affected by adverse currency movements. The negative foreign currency translation impact on net sales was EUR 84 million.

The Group’s earnings before interest and taxes (EBIT), exclud-ing non-recurring items (NRI), were EUR 167 million (EUR 164 million). Including NRI of EUR -31 million the reported EBIT was EUR 136 million. Positive earnings development continued in the Molded Fiber and Foodservice Europe-Asia-Oceania busi-ness segments. Earnings in the North America business segment were unsatisfactory despite strong net sales growth, as they were burdened by ongoing investment costs. Adverse currency impact on the Group’s EBIT was EUR 6 million. Earnings per share (EPS) excluding NRI were EUR 1.21 (EUR 1.19). The reported EPS was EUR 0.91 (EUR 1.19).

The Group’s free cash flow was EUR 56 million (EUR 103 million). Return on investment (ROI), excluding NRI, was 12.1% (12.6%) and return on equity (ROE), excluding NRI, was 15.8% (15.8%).

The implementation of the Group’s strategic direction which focuses on quality growth was continued during the year. In the United States premises acquired in Batavia, Ohio, were trans-formed into a new world class manufacturing and distribution unit. The unit commenced operations towards the end of the year. In Europe the foodservice product range was expanded with a targeted acquisition of a specialty corrugated packaging manufac-turer in the UK.

Certain efficiency improving measures were taken during the year to improve the long-term competitiveness of the Group. As an outcome of these activities manufacturing units in Viul, Norway and Epping, South Africa were closed. Additionally, the strategic review of loss-making foodservice business in Italy was concluded and the business divested.