Overview


The business environment in 2017 was generally positive. The demand for food and foodservice packaging was on a good level across Europe and North America. In India the introduction of Goods and Services Tax (GST) caused temporary weakness in demand for packaging, with negative impact on the Group’s net sales. In Brazil and many African markets, demand was impacted by challenging economic conditions and continued uncertainty in trading environment. Prices for paperboard were relatively stable but prices for plastic resins and recycled paper were at a higher level compared to previous year. Currency translation impact on the Group’s net sales and earnings was negative. The majority of the negative currency impact came from the weakening of the US dollar versus euro.

The Group’s net sales grew to EUR 2,989 million (EUR 2,865 million). Comparable net sales growth was 3% in total and 4% in emerging markets. The Group’s profitability was at the previous year’s level with Adjusted EBIT* at EUR 268 million (EUR 268 million). Reported EBIT were EUR 264 million (EUR 266 million). Adjusted EBIT margin* was 9.0% (9.4%) and Adjusted earnings per share (EPS)** were EUR 1.90 (EUR 1.83). The Group’s free cash flow declined to EUR 56 million (EUR 100 million) reflecting the high capital expenditure and increase in inventories. The Group’s financial position remains strong, supporting its future growth ambitions.

During 2017 the Group continued to implement its growth strategy in food and drink packaging. Focus was on organic growth. The most significant investment was setting up a new world-class production and distribution facility in Arizona, the U.S. Acquisitive growth activity was lower than in previous years although an important acquisition improving the Group’s positions in China was made.