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Mayr-Melnhof Karton reported another weak set of results. However, the Q3 sequential profitability rebound, aided by Packaging, was noteworthy. Also, the recent sector developments indicate that the situation is set to improve (soon). Although it may take time for a euphoric market environment (like 2021-22) to be restored, there’s no concern with respect to the attainment of the long-term packaging demand potential – which MMK is also well-placed to exploit via its (inorganic) growth bets. Overall, the long-term business prospects remain reassuring, provided that investors can be patient in the near term.
Mayr-Melnhof Karton Mayr-Melnhof Karton AG
The operating challenges for Mayr-Melnhof intensified in Q2 and are also guided to in remain Q3. While Packaging had a better quarter, the dynamics in Karton deteriorated. The good news is that the firm seems flexible enough to rejig its strategic priorities. Also, given the ‘relatively’ better results vs. the bigger European peers, there’s more room to expedite improvement measures. While our estimates are likely to again be slashed, the firm’s long-term potential remains intact.
In the backdrop of a (sudden) reversal of fortunes in the packaging markets, Mayr-Melnhof reported weak Q1 results. Despite acquisition-related (top-line) benefits, there were varying challenges in both divisions. Even management has shared a cautious outlook (for 2023). While MMK is pursuing well-targeted growth and efficiency improvement investments, a moderation in the estimates seems inevitable. A material upside should be maintained, given the intact long-term packaging market dynamics, but investors’ patience is warranted.
On the back of various (inorganic) growth investments and promising packaging market dynamics, Mayr-Melnhof Karton reported healthy 2022 results. There were encouraging developments in both divisions. The Q4 was however muted and even early-2023 is guided to face various risks/challenges. Nevertheless, with packaging expected to be more resilient to the brewing market challenges – also reflected in MMK’s intact investment ambition – the Austrian firm remains a compelling bet, especially at a time when its AV peers are battling various wood and forest market risks.
Yet again, Mayr-Melnhof reported strong quarterly results – with promising dynamics in both segments. Despite the severe cost challenges, the management did well to implement price hikes and at the same time ensure the appropriate operating capacities to meet the healthily-growing market demand. Some signs of moderation were however evident in Karton. Also, some near-term challenges in the form of performance erosion and leverage build-up seem inevitable. Nevertheless, looking beyond the short-term noise, the firm remains an attractive long-term European packaging market proxy.
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