NEWS
Berry creates
new firm Berry Global is to create a ‘speciality materials company’ in collaboration with Glatfelter. The new entity, which will be publicly traded, combines most of Berry’s health, hygiene and specialities (HH&S) segment – including its non-wovens and films business – with Glatfelter. Berry says the new company will become a global leader in the growing speciality materials industry. “This is the culmination
of a comprehensive review of strategic alternatives,” said Kevin Kwilinski , CEO of Berry. “We believe these two businesses, in combi- nation, can drive signifi- cant value for shareholders with complementary portfolios.” The new business – ex- pected to have a turnover of around US$3.6 billion – will be led by Curt Begle , president of HH&S at Berry. �
www.berryglobal.com
Huhtamaki sales and profits drop in 2023
Finnish packaging major Huhtamaki has reported a fall in both sales and profits in 2022.
Sales for 2023 fell by 7%
to around €4.2 billion (US$4.5bn), while profitabil- ity (adjusted EBIT) was €393m (US$423m) – around 1% lower than in 2022. In the final quarter of
2023, sales slipped by 6% to just over of €1bn (US$1.1bn), while profitabil- ity (adjusted EBIT) rose by 15% to €108m (US$116m). “In 2023, we delivered a solid performance despite lower consumption across categories and geogra- phies, driven by the impact of inflation,” said Charles Héaulmé, president and CEO of Huhtamaki. The company’s global food service business saw a decline of 7% over the course of the year, eventu- ally reaching just over €1bn (US$1.1bn). This resulted in a similar 7% fall in profitabil- ity to around €98m (US$106m). Currency movements caused the
Héaulmé: “A solid perfor- mance in 2023 despite lower consumption across catego- ries and geographies”
segment’s net sales to decline by €32m, said the company.
At the same time, lower demand and volumes caused sales in flexible packaging to fall 14% to reach around €1.6bn (US$1.7bn). Profitability in the segment fell by 10% to €88m (US$95m). Currency movements caused net sales to decline by €73m, said Huhtamaki. Huhtamaki also is closing its flexpack plant in the Czech Republic – which employs nearly 200
people – by the end of March 2024.
Huhtamaki said the facility does not represent a material share of its sales or profits. It booked closure- related costs of around €35m (US$38m) in the second quarter of 2023. In time, the closure is expected to be cash positive and improve the company’s competitiveness in Europe, it said.
Business in North America was relatively flat – declining just 1% to around €1.5bn (US$1.6bn). Currency movements caused net sales to decline by €37m. “We took steps in 2023 to optimise our manufacturing footprint and improve productivity globally,” said Héaulmé. “These include consolidation of manufac- turing capacity in Europe and India to larger units. The improvements are expected to lead to savings of around €100m (US$108m) over the next three years.” �
www.huhtamaki.com
TeraPlast sees contraction in performance
TeraPlast of Romania reported a decline in both sales and profits in 2023. The company, which produces a
variety of products including flexible packaging, saw a 5% fall in sales for the year, reaching RON672 million (US$145m).
At the same time, profitability
(EBITDA) slipped slightly by 3% to around RON51m (US$11m). It put this
6 FILM & SHEET EXTRUSION | March 2024
down mainly to a decline in its com- pound business. Turnover in its flexible packaging business rose by 15% to around RON46m (US$10m), while EBITDA fell – with the division posting a loss of around RON8m (US$2m). According to TeraPlast, this was the only one of its divisions to post a decline in profits. “Results reflect the challenging
economic context, with a decrease of demand for some of our markets, which led to us directing our efforts to preserving volumes, market shares and margins,” said Ioana Birta, CFO of TeraPlast. The company expects revenue in the division to grow by 80% this year, due to the commissioning of a new stretch film plant. �
www.teraplast.ro
www.filmandsheet.com
IMAGE: HUHTAMAKI
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