Huhtamaki Oyj: Getting more Flexible; NA recovery gradual

研报英文原文证据摘录

Huhtamaki Oyj: Getting more Flexible; NA recovery gradual

Huhtamaki Oyj UBS Research

Key takeaways from the conference call

The Q2 call reinforced a positive read-through on the earnings beat, with broad-based

improvement in Flexible Packaging, continued strong growth and tight capacity in Fiber,

and better sequential trends in Foodservice. Key offsets are the slow North America

operational recovery and working-capital pressure, while management retained a

cautious stance on H2 given weak consumer confidence, geopolitical uncertainty and

volatile raw material costs.

Flexible Packaging improvement helped by broad-based recovery and

pricing pass-through. Q2 comp sales grew 14%, supported by passing through

raw material increases as well as underlying volume growth across all regions,

contract wins and better customer coverage. India and Turkey were the strongest

contributors, while management also cited improved performance across global,

regional and smaller accounts. The 10.8% adj. EBIT margin reflected volume

leverage, portfolio actions, cost savings and turnaround progress. Management

reiterated a sustainable margin range of 9%-11%.

No material Flexibles pre-buying benefit. Some customer stocking occurred

immediately after the Middle East conflict escalated in April, but management said

this was not material for Q2 overall. Bespoke products and customer visibility over

inventories limit the scope for significant pre-buying.

North America operational issues concentrated in Hammond and Paris and

recovery will take time. Dedicated task forces are addressing start-up

inefficiencies. c.140 employees have been removed YoY, supporting future cost

savings, but management does not expect a quick resolution. North America’s

margin ambition remains 10%-12%.