Mayr-Melnhof Karton AG – FY2025 Results & Strategic Update

Mayr-Melnhof Karton AG (MM Group), a global leader in fibre-based packaging solutions, today announced its financial results for the fiscal year 2025, alongside major strategic, operational, and transformation updates.

🔹 Financial Performance Overview

• Revenue: EUR 3.89 billion (-4.8% YoY)

• Adjusted EBITDA: EUR 418.2 million (stable YoY)

• Operating Profit: EUR 221.0 million (+16.3%)

• Net Profit: EUR 77.0 million (-30.3%)

• Free Cash Flow: EUR 11.1 million (significant decline)

Despite a challenging macroeconomic environment, MM improved profitability through cost discipline and operational excellence.

🔹 Major Strategic Project: Fit-For-Future Programme

• Successfully ramped up group-wide transformation programme

• Delivered ~EUR 70 million earnings contribution in 2025

• Target: > EUR 250 million earnings uplift by 2027

• Focus areas:

  • Operational efficiency

  • Procurement optimization

  • Sales and admin restructuring

  • Cost reduction initiatives

This programme is the core driver of future profitability and competitiveness.

🔹 Key Business & Product Developments

• Continued focus on sustainable fibre-based packaging solutions

• Expansion of plastic replacement packaging innovations

• New product developments:

  • Sustainable carton alternatives to plastic trays

  • Lightweight detergent packaging

  • E-commerce optimized packaging solutions

Innovation remains a key growth engine, especially in consumer goods and pharma packaging.

🔹 Divestment / Shutdown (Major Portfolio Change)

• Sale of TANN Group (tipping paper business) completed

• Generated approx. EUR 125 million one-off gain

• Strategic impact:

  • Sharpened focus on core consumer packaging business

  • Strengthened balance sheet

  • Improved operational clarity

This represents a major portfolio restructuring decision.

🔹 Operational & Structural Changes

• Restructuring of pharma operations in Southwest Europe (France & Spain)

• Portfolio and site optimization measures implemented

• Impairments recorded in Board & Paper division

• Workforce reduced to 13,347 employees (-9.3%)

These steps reflect cost optimization and structural consolidation.

🔹 Balance Sheet & Capital Actions

• Net debt reduced to EUR 913.7 million

• Improved equity ratio: 47%

• Share buyback programme executed (~EUR 41.2 million)

• New dividend policy:

  • Target payout: 40–60% of profit

  • Proposed dividend: EUR 2.00/share (+11%)

🔹 Sustainability & ESG Highlights

• CO₂ emissions reduced by 11%

• Maintained CDP Triple-A rating (climate, forests, water)

• Workplace safety improved:

  • Accident rate reduced by 4%

MM continues to position itself as a leader in sustainable packaging.

🔹 Market Environment & Challenges

• Continued weak consumer demand

• Structural overcapacity in Europe

• Increasing cost pressure and competition

These factors impacted sales and net profit, despite operational improvements.

🔹 Outlook (2026 and Beyond)

• Continued execution of Fit-For-Future programme

• Focus on:

  • Cost leadership

  • Innovation

  • Sustainable packaging growth

• Strong confidence in long-term market potential

Management expects MM to emerge stronger from the transformation phase.