Huhtamäki Reports Comparable Sales Growth and Improved Profitability in First Half of 2026

Huhtamäki Oyj reported comparable net sales growth and improved profitability for the first half of 2026, despite a challenging geopolitical environment, currency headwinds and higher transportation and energy costs.

For the second quarter ended June 30, 2026, net sales remained stable at EUR 1,009.0 million, compared with EUR 1,007.5 million a year earlier. Comparable net sales growth was 2%, while adjusted EBIT increased slightly to EUR 103.7 million from EUR 103.1 million. Reported EBIT rose to EUR 74.2 million, up from EUR 46.2 million, and adjusted earnings per share increased to EUR 0.64 from EUR 0.63. Reported earnings per share improved to EUR 0.43, compared with EUR 0.20 in the prior-year period.

During the first six months of 2026, net sales declined 3% to EUR 1,955.8 million from EUR 2,009.1 million, primarily due to adverse currency movements. Comparable net sales growth at the group level was 1%. Adjusted EBIT was EUR 198.2 million, compared with EUR 201.5 million a year earlier, while the adjusted EBIT margin improved to 10.1% from 10.0%. Reported EBIT increased to EUR 157.4 million from EUR 139.9 million. Adjusted earnings per share were EUR 1.20, compared with EUR 1.21, while reported earnings per share rose to EUR 0.89 from EUR 0.74.

President and CEO Ralf K. Wunderlich said the company delivered comparable net sales growth and improved adjusted EBIT margin despite a worsening geopolitical environment, including disruptions caused by the Middle East crisis that resulted in supply challenges and significant cost increases. He said the company's priority remained supporting employees in the region while ensuring continued supply to customers.

Huhtamaki reported that continued efficiency improvement initiatives supported profitability during the quarter. Strong performances in the Flexible Packaging and Fiber Packaging businesses offset weaker results in North America, where lower sales and operational challenges at several plants affected earnings and cash flow.

The Flexible Packaging segment delivered strong growth during the quarter, with net sales increasing 11% to EUR 344.8 million and comparable net sales growth reaching 14%. Adjusted EBIT increased 43% to EUR 37.4 million, supported by volume growth, cost savings and continued turnaround actions at underperforming units.

The Fiber Packaging segment also continued its positive momentum. Quarterly net sales increased 7% to EUR 100.6 million, while adjusted EBIT rose 38% to EUR 15.4 million. Growth was driven by higher sales prices, increased volumes and continued investments aimed at expanding capacity in egg and fruit packaging.

The Foodservice Packaging business reported second-quarter net sales of EUR 235.9 million, down 1% from the previous year. Adjusted EBIT declined 12% to EUR 20.2 million as lower sales volumes and higher transportation costs weighed on profitability, although cost-saving measures provided support.

In North America, second-quarter net sales decreased 10% to EUR 330.0 million, while adjusted EBIT declined 26% to EUR 33.3 million. The company attributed the weaker performance to lower sales volumes, operational issues at several production sites, higher distribution and energy costs, a weaker U.S. dollar, and the timing of Easter, which only partly offset increased deliveries related to the FIFA World Cup and U.S. 250th anniversary celebrations.

Currency movements negatively impacted group net sales by EUR 15.1 million in the second quarter and EUR 77.8 million during the first half of the year. Currency also reduced EBIT by EUR 1.6 million in the quarter and EUR 6.4 million during the six-month period.

Reported EBIT included EUR 29.5 million of items affecting comparability during the second quarter and EUR 40.8 million during the first half, mainly related to restructuring activities, implementation of large SaaS cloud computing projects and a EUR 16 million impairment in the Foodservice Packaging segment associated with production footprint optimization.

Capital expenditure for the first half declined 27% to EUR 53.4 million, reflecting continued capital discipline, while free cash flow decreased to EUR 33.9 million from EUR 63.1 million. The decline was primarily attributed to operational challenges in North America and higher plastics prices.

Huhtamaki strengthened its financial position during the reporting period by issuing EUR 300 million of six-year senior unsecured notes under its EMTN programme. The proceeds were used partly to repurchase outstanding notes due in 2027 and for general corporate purposes. Net debt decreased to EUR 1.21 billion at the end of June, with net debt to adjusted EBITDA improving to 2.0x from 2.1x a year earlier.

On sustainability, the company said it advanced its 2030 decarbonization roadmap, reduced Scope 1 and Scope 2 emissions compared with the same period last year, initiated supplier engagement on Scope 3 emissions and deforestation-free supply chains, and increased the share of certified fiber to 99.1%.

During the reporting period, Huhtamaki appointed Riikka Tieaho as Executive Vice President, Sustainability, Corporate Affairs & Legal, and General Counsel. Sara Engber became President, North America, following the departure of Ann O'Hara, while Thomas Morin was appointed President, Fiber Packaging, effective September 1, 2026.

The company said there were no significant events after the reporting period.

Huhtamaki maintained its 2026 outlook unchanged, stating that trading conditions are expected to remain relatively stable during the year and that its financial position will support profitable growth opportunities.