GLOBAL – European packaging companies Stora Enso and Huhtamaki and US-based metal packaging producer Crown Holdings have recorded growth in sale in second quarter of FY22.
Stora Enso posts 18% sales growth
Finnish pulp and paper manufacturer has recorded €3.05 billion (US$3.12 billion) in sales for the second quarter (Q2) of the fiscal year 2022 (FY22), up by 18% from €2.59 billion (US$2.65 billion) in the same period of FY21.
During the quarter, the company’s operational earnings before interest and taxes (EBIT) increased by 39% to €505 million (US$516.19 million) against €364 million (US$372.06 million) in Q2 2021, while its operational EBIT margin rose to 16.5% from 14% a year earlier.
Stora Enso’s operating profit for the quarter was €399 million (US$407.84 million) while its earnings per share (EPS) were €0.38 (US$0.39) compared with €0.26 (US$0.27) in Q2 2021.
The firm’s sales for the first half (H1) of FY22 grew by 20.2% to €5.85 billion (US$5.98 billion), against €4.86 billion (US$4.97 billion)in the prior-year period.
It recorded operational EBIT of €1.0 billion (US$1.02 billion)in H1 2022, while its operating profit was €793 million (US$810.56 million), up by 131.2% from H1 2021.
Stora Enso President and CEO Annica Bresky said: “I am happy to report that our very strong start of the year continued in the second quarter, despite persisting macroeconomic and geopolitical turmoil.
“During the quarter, the demand has been robust for our main segments but logistical challenges with low long-haul vessel reliability and poor container availability have had an impact on our ability to fully serve our customers.”
The company expects its operational EBIT for the full year to be higher than last year’s operational EBIT of €1.52 billion (US$1.55 billion).
In May, Stora Enso offloaded its corrugated packaging plants in Russia amid the country’s ongoing invasion of Ukraine.
Huhtamaki posts 31% net sales growth
Finnish consumer packaging company Huhtamaki has also reported a 31% increase in its net sales for the second quarter (Q2) of the fiscal year 2022 (FY22), which stood at €1.14 billion (US$1.17 billion) compared with €876.9 million (US$896.32 million) a year earlier.
During the three months to 30 June, the company’s comparable net sales rose by 17% at a group level and 16% in emerging markets.
Driven by a sales growth, an ongoing focus on operational efficiency and acquisitions, Huhtamaki saw its Q2 adjusted earnings before interest and taxes (EBIT) increase to €103m.
The company’s adjusted earnings per share (EPS) also grew to €0.63 (US$0.64) from €0.53 (US$0.54) in the same period of last year.
Huhtamaki president and CEO Charles Héaulmé said: “We continued delivering a strong performance in the second quarter of 2022, despite volatile market conditions.
“We faced strong headwinds created by supply chain constraints, challenges with raw material availability and geopolitical turmoil.”
Huhtamaki posted €2.19 billion (US$2.24 billion) in net sales for the first half (H1) of FY22, up by 31% compared with €1.67 billion (US$1.71 billion) in the corresponding period of FY21.
The company’s comparable net sales growth for the period was 18% at a group level and 17% in emerging markets.
Just like Stora Enso, Huhtamaki also decided to divest its operations in Russia early this year in response to the country’s aggression against Ukraine.
Crown reports 21% growth in net sales
US-based metal packaging producer Crown Holdings has recorded US$3.51 billion in net sales for the second quarter (Q2) of the fiscal year 2022 (FY22), a 20.7% increase from US$2.85 billion in the same period of FY21.
During the three months to 30 June, the company’s income from its operations grew from US$385 million in Q2 2021 to US$466 million.
Driven by improved profitability in its North American tinplate and can-making equipment businesses among other factors, Crown’s segment income rose by US$37 million to US$432 million, compared with US$395 million in the prior-year period.
Net income attributable to the company in the quarter was US$295 million, up from US$128 million in the same period of last year, while its reported diluted earnings per share (EPS) were US$2.43, compared with US$0.95 in Q2 2021.
Crown President and CEO Timothy J Donahue said: “The company performed well during the quarter despite accelerating European energy prices and currency translation headwinds.
“Global beverage can demand continues to be robust, with virtually every region operating at full capacity.”
In the first half (H1) of FY22, Crown generated US$6.67 billion in net sales, against US$5.42 billion in the same period of FY21.
The company’s income from operations during this period was US$810 million, up from US$712 million in H1 2021, while its segment income was US$815 million, against US$764 million in the prior-year period.
For the third quarter (Q3) of FY22, Crown expects adjusted earnings of between US$1.75 and US$1.85 for each share.
The company expects its adjusted full-year earnings to be in the range of US$7.65 to US$7.85 for each share.
Liked this article? Subscribe to our regular email newsletters with the latest news insights from Africa and the World’s packaging and printing industry. SUBSCRIBE HERE.
