Huhtamäki Oyj's Half-yearly Report January 1-June 30, 2025: Continued stable operational performance in a volatile environment

Group 1: Financial Performance Overview - Net sales for Q2 2025 decreased by 3% to EUR 1,007.5 million compared to EUR 1,037.5 million in Q2 2024, while H1 2025 net sales decreased by 2% to EUR 2,009.1 million from EUR 2,041.4 million in H1 2024 [3][4][21] - Adjusted EBIT for Q2 2025 was EUR 103.1 million, a decrease of 2% from EUR 105.5 million in Q2 2024, and for H1 2025, it was EUR 201.5 million, down 1% from EUR 204.3 million in H1 2024 [3][23] - Reported EPS for Q2 2025 was EUR 0.20, a significant drop of 68% from EUR 0.62 in Q2 2024, while adjusted EPS remained stable at EUR 0.63 [4][19] Group 2: Segment Performance - In Q2 2025, net sales in the Foodservice Packaging segment decreased by 5% to EUR 239.0 million, while North America saw a slight decline of 1% to EUR 366.4 million, and Flexible Packaging also decreased by 5% to EUR 310.7 million [13][21] - Fiber Packaging segment experienced growth with a 3% increase in net sales to EUR 94.3 million [13] - Adjusted EBIT margin in Flexible Packaging increased despite a decrease in net sales, while Fiber Packaging continued to grow, although its margin decreased slightly due to operational challenges [8][24] Group 3: Strategic Initiatives and Market Conditions - The company is focusing on executing strategic priorities to strengthen its business for long-term sustainable growth amidst market uncertainties, including geopolitical tensions and currency fluctuations [6][12] - An acquisition of Zellwin Farms, a US-based egg packaging manufacturer, was completed, aligning with the company's focus on profitable growth and expected to be accretive from year one [10] - The company successfully completed a three-year EUR 100 million efficiency program ahead of schedule, achieving targeted cost savings with lower than expected costs [11][25] Group 4: Outlook and Future Expectations - The trading conditions for 2025 are expected to remain relatively stable, allowing the company to pursue profitable growth opportunities [29]