Huhtamäki Reports Lower Sales but Stable Margins in Q1 2026

Huhtamäki Oyj reported a decline in net sales for the first quarter of 2026, while maintaining stable profitability margins amid challenging market conditions and currency headwinds.

Net sales decreased 5% year-on-year to EUR 946.8 million from EUR 1,001.6 million, impacted by negative currency movements of EUR 62.6 million. On a comparable basis, however, sales grew 1%, supported by higher volumes, particularly in North America and Fiber Packaging.

Reported EBIT declined 11% to EUR 83.2 million, while adjusted EBIT fell 4% to EUR 94.5 million. Despite this, the adjusted EBIT margin improved to 10.0% from 9.8% in the prior-year period. Adjusted EBITDA decreased 5% to EUR 144.0 million.

Profit for the period totaled EUR 51.3 million, compared with EUR 59.0 million a year earlier. Reported earnings per share were EUR 0.47, down from EUR 0.54, while adjusted EPS stood at EUR 0.56.

Segment performance was mixed. Fiber Packaging delivered growth, with net sales rising 1% and adjusted EBIT increasing 20%, while Flexible Packaging saw improved profitability despite lower sales. Foodservice Packaging and North America segments recorded declines in both sales and earnings, reflecting softer demand, adverse currency impacts, and weather-related disruptions.

Free cash flow improved to EUR 10.0 million from negative EUR 22.5 million in the prior year, supported by all business segments. Net debt decreased to EUR 1,178.6 million, with a net debt-to-EBITDA ratio of 1.9x.

Chief executive Ralf K. Wunderlich said the company achieved comparable sales growth and maintained profitability within its target range despite geopolitical challenges, weather disruptions in North America, and unfavorable currency movements.

Huhtamäki said trading conditions are expected to remain relatively stable through 2026, with continued focus on growth, capital discipline, and operational execution.