Overview


The Group’s trading conditions remained relatively stable during 2014 despite general economic uncertainty. Demand for food and drink packaging grew strongest in fast-growing emerging markets, particularly in Eastern Europe, whereas in Western Europe and in North America development was more moderate. The fragile economic situation in Russia as well as the sharp decline in oil prices had only a minor impact on Huhtamaki’s business. Raw material prices were relatively stable throughout the year, except in North America where paperboard prices as well as energy and distribution costs increased.

The Films business segment was sold at the end of December 2014 and is reported as discontinued operations. Unless otherwise stated, all income statement related figures presented in this report, including corresponding periods in 2013, cover continuing operations only. Continuing operations include the Foodservice Europe-Asia-Oceania, North America, Flexible Packaging and Molded Fiber business segments.

The Group’s net sales in 2014 were EUR 2, 236 million (EUR 2,161 million). Comparable net sales growth was 6% in total and 10% in emerging markets. Profitability development was stronger than the sales development and the Group reported all-time high earnings before interest and taxes (EBIT) at EUR 175 million (EUR 160 million excluding non-recurring items (NRI) of EUR -28 million). EBIT margin was 7.8% (7.4% excluding NRI) and earnings per share (EPS) were EUR 1.24 (EUR 1.17 excluding NRI). The Group’s free cash flow, return on investment (ROI) and return on equity (ROE) also improved compared to 2013. The Group’s financial position remains strong and supports its future growth aspirations.

A new strategic direction with a clear focus on food and drink packaging, and a strong ambition to become the preferred global food packaging brand, was defined for the Group. Two growth enhancing acquisitions were announced during the year. The acquisition of Positive Packaging, a flexible packaging manufacturer with significant positions in India, Middle East and in Africa, was announced in July and completed after the reporting period at the end of January 2015. The acquisition of a folded carton packaging manufacturer in New Zealand was completed in August. In July, the Group also announced its intention to evaluate options for the Films business segment. The business segment, which serves primarily non-food customers, was subsequently divested at the end of the year. Majority of the Group’s capital expenditure was dedicated to organic growth investments in emerging markets.