Huhtamäki Oyj: Huhtamaki to improve efficiency and profitability - effect approximately EUR -30 million in IAC in Q4 2018

HUHTAMÄKI OYJ PRESS RELEASE 2.10.2018 AT 08:00

Huhtamaki to improve efficiency and profitability - effect approximately EUR -30 million in IAC in Q4 2018

Over the last three years Huhtamaki has made significant investments and achieved good growth and customer recognition. However, as commented by CEO Jukka Moisio in the Huhtamaki Half-Yearly Report 2018, the financial performance achieved in the first six months of 2018 was below the company's long-term ambition and the company will take additional actions to improve profitability.

Huhtamaki is now considering to close and write-off non-competitive production lines. In addition, the company plans to speed-up actions to improve productivity by investing further in automation. The company estimates that the effect of write-offs and other actions amounts to approximately EUR -30 million, which would be reported as items affecting comparability (IAC) in the fourth quarter 2018. The planned actions are estimated to result in annual improvements of approximately EUR 15-18 million with full impact in 2020.

"With these actions we plan to improve our productivity and efficiency, and ensure we are well positioned to continue implementing our profitable growth strategy," says CEO Jukka Moisio. "We continue to see good growth opportunities in food and drink packaging."

For further information, please contact:
Thomas Geust, CFO, tel. [phone]

HUHTAMÄKI OYJ
Global Communications

Huhtamaki is a global specialist in packaging for food and drink. With our network of 78 manufacturing units and additional 24 sales only offices in altogether 34 countries, we're well placed to support our customers' growth wherever they operate. Mastering three distinctive packaging technologies, approximately 18,200 employees develop and make packaging that helps great products reach more people, more easily. In 2017 our net sales totaled EUR 3.0 billion. The Group has its head office in Espoo, Finland and the parent company Huhtamäki Oyj is listed on Nasdaq Helsinki Ltd. Additional information is available at www.huhtamaki.com (https://www.huhtamaki.com).

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Source: Huhtamäki Oyj via Globenewswire