Inside information: Huhtamaki accelerates strategy implementation by starting a three-year program to bring 100 MEUR cost savings

Inside information: Huhtamaki accelerates strategy implementation by starting a three-year program to bring 100 MEUR cost savings

HUHTAMÄKI OYJ, INSIDE INFORMATION, STOCK EXCHANGE RELEASE, 30.11.2023 AT 08:00 (EET)

Huhtamaki accelerates strategy implementation by starting a program which is expected to materially support the profitability of Huhtamaki with efficiency improvements leading to savings of approximately EUR 100 million over the next three years. All cost levers will be addressed including potential restructuring to a more optimal manufacturing footprint, reducing input costs at an accelerated pace, and improving productivity globally. The costs of the program are expected to be approximately EUR 80 million, which upon materialization will be treated as items affecting comparability. The program’s performance will be monitored and communicated on a regular basis.

Huhtamaki’s updated 2030 growth strategy was announced in March 2023. It is focused on scaling the profitable core for growth, innovating in sustainable packaging solutions for additional growth, and delivering world-class operational performance. With this updated strategy the Company raised its long-term financial ambition to grow 5-6% p.a., reach 10-12% adjusted EBIT%, and deliver 13-15% adjusted ROI.

"Over the past two years considerable focus has gone into investing for capacity expansion in our core businesses and innovating in molded fiber and recyclable flexible packaging with proprietary technology. Investments in our new innovation areas are starting to yield results as production capacity is being deployed, further driving our growth agenda.

We have made good progress in the execution of our plans, and we see further potential in materially accelerating our financial performance. With this announced program, we expect to make a clear step change, working on all productivity levers in our operations globally”, says Charles Héaulmé, President and CEO of Huhtamaki.

For further information, please contact:
Kristian Tammela, Vice President, Investor Relations, tel. +358 10 686 7058

HUHTAMÄKI OYJ
Global Communications

About Huhtamaki
Huhtamaki is a leading global provider of sustainable packaging solutions for consumers around the world. Our innovative products protect on-the-go and on-the-shelf food and beverages, and personal care products, ensuring hygiene and safety, driving accessibility and affordability, and helping prevent food waste. We embed sustainability in everything we do. We are committed to achieving carbon neutral production and designing all our products to be recyclable, compostable or reusable by 2030. Our blueloopTM sustainable packaging solutions are world-leading and designed for circularity.

We are a participant in the UN Global Compact, Huhtamaki is rated ‘A’ on the MSCI ESG Ratings assessment and EcoVadis has awarded Huhtamaki with the Gold medal for performance in sustainability. To play our part in managing climate change, we have set science-based targets that have been approved and validated by the Science-Based Targets initiative.

With 100 years of history and a strong Nordic heritage we operate in 37 countries and 116 operating locations around the world. Our values Care Dare Deliver guide our decisions and help our team of around 18 000 employees make a difference where it matters. Our 2022 net sales totalled EUR 4.5 billion. Huhtamaki Group is headquartered in Espoo, Finland and our parent company, Huhtamäki Oyj, is listed on Nasdaq Helsinki Ltd. Find out more about how we are protecting food, people and the planet at www.huhtamaki.com.