Austria's Mayr-Melnhof Karton 9M sales fall on maintenance standstills, cost pressure

Overview

• Austria cartonboard producer's 9-month sales fell 4% yr/yr

• Adjusted EBITDA and margin declined from prior year

• Higher costs and maintenance standstills weighed on earnings

Outlook

• Company says demand in Packaging is picking up, led by Pharma & Healthcare Packaging growth

• Company expects continued margin pressure in Board & Paper due to market overcapacity and rising energy costs

Result Drivers

• DIVISIONAL PERFORMANCE - Earnings growth in Packaging divisions was offset by declines in Board & Paper

• COST PRESSURE - Higher energy, transportation and chemicals costs intensified margin pressure in Board & Paper

• MAINTENANCE STANDSTILLS - Planned maintenance at cartonboard and paper mills weighed on Q3 earnings

Company press release:

Key Details

Analyst Coverage

• The current average analyst rating on the shares is "buy" and the breakdown of recommendations is 2 "strong buy" or "buy", 2 "hold" and no "sell" or "strong sell"

• The average consensus recommendation for the paper packaging peer group is "buy"

• Wall Street's median 12-month price target for Mayr-Melnhof Karton AG is €87.00, about 28.5% above its November 4 closing price of €67.70

• The stock recently traded at 10 times the next 12-month earnings vs. a P/E of 11 three months ago

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(This story was created using Reuters automation and AI based on LSEG and company data. It was checked and edited by a Reuters journalist prior to publication.)