- Net sales were EUR 786 million (EUR 772 million)
- Adjusted EBIT was EUR 70.2 million (EUR 75.6 million); EBIT EUR 79.7 million (EUR 75.6 million)
- Adjusted EPS was EUR 0.47 (EUR 0.52); EPS EUR 0.54 (EUR 0.52)
- Comparable net sales growth was 6% in total and 10% in emerging markets
- Currency movements had a negative impact of EUR 48 million on the Group's net sales and EUR 4 million on EBIT
- The North America segment's earnings declined due to high price level of distribution services and costs related to the start-up of the Goodyear plant
- Net sales were EUR 1,511 million (EUR 1,511 million)
- Adjusted EBIT was EUR 130.2 million (EUR 138.4 million); EBIT EUR 139.7 million (EUR 138.4 million)
- Adjusted EPS was EUR 0.87 (EUR 0.95); EPS EUR 0.94 (EUR 0.95)
- Comparable net sales growth was 6% in total and 9% in emerging markets
- Currency movements had a negative impact of EUR 107 million on the Group's net sales and EUR 8 million on EBIT
- The North America segment's earnings declined due to high distribution costs and costs related to the start-up of the Goodyear plant
- Capital expenditure decreased to EUR 81 million (EUR 95 million) and free cash flow improved to EUR 27 million (EUR -12 million)
Jukka Moisio, CEO, says, "Our second-quarter comparable net sales growth was good at 6%. In the emerging markets growth was 10%. All segments contributed to positive development and Flexible Packaging and Foodservice Europe-Asia-Oceania segments reported highest growth. In reported sales, which includes the contribution from the three acquisitions made during the quarter (Ajanta Packaging, Tailored Packaging and Cup Print Unlimited), negative currency conversion reduced net sales by EUR 48 million (6%) resulting in 2% growth.
Our profitability remained solid despite a decline compared to 2017. Currency conversion weakened our EBIT by EUR 4 million. Foodservice Europe-Asia-Oceania and Flexible Packaging segments improved their profitability while North America segment had negative margin development due to higher distribution costs and start-up costs of the newly-invested Goodyear, AZ, facility. While we are pleased with the growth we will take additional actions to improve profitability.
Our net sales with global key accounts have progressed well with growth rates above our average growth. Organic investments and the three acquisitions made in the second quarter are expected to deliver continued strong net sales momentum in the coming quarters.
The Single Use Plastics (SUP) proposal was published by the European Commission at the end of May. It proposes to ban single use plastics cutlery, plates, stirrers and straws and introduce labelling requirements, to help reduce marine pollution. The adoption of the proposal will follow the EU Ordinary Legislative Procedure and will be the subject of negotiations between the Council of Ministers, the European Parliament and the European Commission.
As the legislation stands, the products that are proposed to be banned make less than 2% of our Foodservice business in Europe and can for the most part be replaced with alternative paper-based products. As a converter with innovations capabilities in many packaging materials and with the growing interest in replacing plastic with alternative materials, we are well placed to continue to work with our customers and their consumers to respond to their demands. Already now, the majority of our products are fiber-based."