Huhtamaki, known for its disposable containers, says that the prices of raw materials, especially polymers and recycled fiber, are rising significantly.
Packaging and The turnover of Huhtamaki, which manufactures cardboard containers, increased by ten per cent to EUR 877 million in April-June compared with the corresponding period last year.
The company’s adjusted operating profit was EUR 80 million, compared to EUR 70 million in the second quarter of last year.
According to information service Refinitiv, analysts expected net sales to increase to EUR 853.7 million and operating profit to EUR 74.2 million.
“However, the global food packaging market remains volatile and the pandemic situation in many countries remains difficult. Instability is also reflected in the supply chain as a significant increase in the prices of raw materials, especially polymers and recycled fiber, ”the CEO Charles Héaulmé says in a press release.
Huhtamaki’s largest business area is North America, where net sales remained unchanged from last year. Instead, there was strong growth in European and Asian operations.
Huhtamaki expects the Group’s business conditions to improve from 2020, although there is still instability in the operating environment. The company does not provide a more detailed estimate of the development of this year’s net sales or earnings.
However, Huhtamaki states that its diverse product range provides stability for the business, and the Group’s good financial position enables it to take advantage of profitable growth opportunities.