Spotted in Kauppalehti:
“Deutsche Bank initiates coverage of Huhtamäki with a target price of 42.00 euros and a buy recommendation.”
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Was this already here? About PFAS compounds and Huhtamäki’s cleanup operation in Norway. Will this already show significantly in the results?
"Cleaning the river itself is a much bigger undertaking. Huhtamäki is currently investigating how the riverbed and its sediments should be cleaned. The plan should be ready by the end of 2025.
Huhtamäki did not want to give an interview or comment on the cost of the cleanup work.
In any case, the work is extensive, as the riverbed to be cleaned is wide."
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Huhtamäki Board Investment Committee. 
The Board of Directors of Huhtamäki Oyj has decided to establish a new Board committee, the Investment Committee, whose term of office will begin on January 1, 2025. The Investment Committee assists the Board by guiding, overseeing, processing, and evaluating strategic investments.
As of January 1, 2025, the Investment Committee will consist of Robert K. Beckler (Chair), Pekka Vauramo, and Ralf K. Wunderlich, and the term of office for the members will continue until the close of the Annual General Meeting following their selection.
As of January 1, 2025, the Board of Directors of Huhtamäki Oyj will have three committees: the Audit Committee, the Human Resources Committee, and the Investment Committee.
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Huhtamaki appoints Axel Glade as Head of the Flexible Packaging business segment.
Axel Glade, (55), has been appointed Head of Huhtamaki’s Flexible Packaging business segment and a member of the Group Executive Team. He will start in his position no later than January 1, 2026. He will report to President and CEO Charles Héaulmé and will be based in Espoo.
Axel joins Huhtamaki from Constantia Flexibles, a flexible packaging company headquartered in Vienna, Austria. There he served as Head of the Film Division and a member of the Executive Board. He has held several leadership positions at Constantia since 2011, including SVP Consumer and CEO at Constantia Pirki. Before Constantia, Axel held various leadership positions in other packaging companies such as Sealed Air and Bischof + Klein.
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Apparently a long-time member of Huhtamäki’s board; however, no work history in operational management for almost ten years, if I interpreted that press release correctly: Huhtamäki vaihtaa toimitusjohtajaa | Kauppalehti
Huhtamäki has appointed Ralf K. Wunderlich (58) as CEO starting January 15, 2025, when the company’s current CEO Charles Héaulmé will step down from his position. He will be available as needed until July 2025 to ensure a smooth transition.
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Here are Viljakainen’s comments on the CEO change. 
Huhtamäki announced yesterday that the board will appoint Ralf K. Wunderlich as the company’s CEO starting January 15, 2025, when the company’s current CEO Charles Héaulmé will step down from his position. Charles Héaulmé will be available as needed until July 2025 to ensure a smooth transition.
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Nordea julkaisi päivitetyn Huhtamäki-analyysinsä. Suositus (OSTA) ja tavoitehinta (42,50 €) pysyvät ennallaan. 
Key downside risks: Consumer confidence weakening and people spending less money or buying cheaper products; higher raw material prices; a weaker USD and INR; tighter regulations and sustainability requirements; an overall economic downturn could lower sales volumes, and weak end demand could lead to declining product prices.
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Updated view.
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Danske Bank published its updated view on Huhtamäki. The recommendation (BUY) and target price (€41.00) remain unchanged.
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Analyst’s preview comments on Huhtamäki’s Q4 results.
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A Stable Year in a Gradually Improving Market
Q4 2024 in brief
- Net sales grew by 2% to EUR 1,059 million (EUR 1,033 million)
- Comparable net sales growth was 3% at Group level
- Reported operating profit EUR 95 million (EUR 146 million); adjusted operating profit was EUR 110 million (EUR 108 million)
- Reported earnings per share EUR 0.61 (EUR 0.83); adjusted earnings per share was EUR 0.68 (EUR 0.68)
- Impact of currency fluctuations on Group net sales was EUR -2 million and on operating profit EUR -0 million
Q1-Q4 2024 in brief
- Net sales decreased by 1% to EUR 4,126 million (EUR 4,169 million)
- Comparable net sales growth was -0% at Group level
- Reported operating profit EUR 372 million (EUR 381 million); adjusted operating profit was EUR 417 million (EUR 393 million)
- Reported earnings per share EUR 2.14 (EUR 1.97); adjusted earnings per share was EUR 2.48 (EUR 2.32)
- Impact of currency fluctuations on Group net sales was EUR -37 million and on operating profit EUR -4 million
- Investments were EUR 248 million (EUR 319 million)
- Free cash flow was EUR 216 million (EUR 321 million)
- The Board of Directors proposes a dividend of EUR 1.10 (EUR 1.05) per share
Key figures
| EUR million | Q4 2024 | Q4 2023 | Change | 2024 | 2023 | Change | ||||||
|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Net sales | 1,058.7 | 1,032.9 | 2 % | 4,126.3 | 4,168.9 | -1 % | ||||||
| Comparable net sales growth | 3 % | -3 % | -0 % | -2 % | ||||||||
| Adjusted EBITDA1 | 163.7 | 159.5 | 3 % | 622.2 | 590.1 | 5 % | ||||||
| Percentage1 | 15.5 % | 15.4 % | 15.1 % | 14.2 % | ||||||||
| EBITDA | 151.4 | 205.7 | -26 % | 595.6 | 621.2 | -4 % | ||||||
| Adjusted operating profit2 | 110.3 | 107.5 | 3 % | 416.9 | 392.6 | 6 % | ||||||
| Percentage2 | 10.4 % | 10.4 % | 10.1 % | 9.4 % | ||||||||
| Operating profit | 95.0 | 146.0 | -35 % | 372.3 | 380.9 | -2 % | ||||||
| Adjusted earnings per share, EUR3 | 0.68 | 0.68 | -1 % | 2.48 | 2.32 | 7 % | ||||||
| Earnings per share, EUR | 0.61 | 0.83 | -27 % | 2.14 | 1.97 | 8 % | ||||||
| Adjusted return on investment (ROI)2 | 12.1 % | 11.2 % | ||||||||||
| Adjusted return on equity (ROE)3 | 13.4 % | 13.2 % | ||||||||||
| Return on investment (ROI) | 10.8 % | 10.9 % | ||||||||||
| Return on equity (ROE) | 11.6 % | 11.8 % | ||||||||||
| Investments | 113.8 | 114.8 | -1 % | 247.9 | 318.7 | -22 % | ||||||
| Free cash flow | 55.6 | 128.4 | -57 % | 215.8 | 321.4 | -33 % | ||||||
| 1 Excluding items affecting comparability | -12.2 | 46.2 | -26.5 | 31.1 | ||||||||
| 2 Excluding items affecting comparability | -15.3 | 38.5 | -44.7 | -11.7 | ||||||||
| 3 Excluding items affecting comparability | -7.1 | 16.0 | -35.1 | -35.9 |
CEO’s review
The year 2024 was stable for Huhtamaki, marked by improved occupational safety and strengthened profitability. In the first half of the year, demand was subdued in many markets. In the second half, demand gradually recovered, but differences were observed across product categories and geographies. Demand grew in ready-packed products, especially for egg packaging. Demand for flexible packaging also grew, although fluctuations in demand were significant. Sales volumes for takeaway food remained low, particularly for coffee shop chains, as inflation and elevated market prices continued to impact demand. The foodservice packaging market developed more positively in North America compared to other regions. The ongoing war in the Middle East continued to affect international brands in parts of the Middle East and Asian markets.
In the last quarter of the year, comparable net sales increased by 3%. Sales volumes grew, supported by customer sales campaigns. Profitability strengthened, with the adjusted operating profit margin reaching 10.4% and adjusted operating profit growing by 3% to EUR 110 million.
For the full year, comparable net sales remained at the previous year’s level. Decreasing raw material prices put pressure on selling prices, while sales volumes increased slightly. Although net sales growth was subdued, adjusted operating profit grew by 6% with the operating profit margin rising to 10.1%. Free cash flow was EUR 216 million. Free cash flow was supported by profit growth and a reduction in investments, even as we continued to invest in our profitable core business. Additionally, the free cash flow for the comparison period was supported by a significant decrease in working capital.
Dividend proposal
Huhtamäki Oyj’s distributable equity on December 31, 2024, was EUR 1,496 million (EUR 836 million). The company’s Board of Directors proposes to the Annual General Meeting that a dividend of EUR 1.10 (EUR 1.05) per share be distributed.
Conference call
Huhtamaki will organize a combined audiocast and conference call today at 9:30 a.m. In the event, Huhtamaki’s President and CEO Ralf K. Wunderlich and CFO Thomas Geust will present the results, and time will be reserved for questions after the results presentation. The event will be held in English and can be followed in real-time. The link to the audiocast is at https://huhtamaki.events.inderes.com/q4-2024. The link to the conference call is at https://events.inderes.com/huhtamaki/q4-2024/dial-in. The audiocast recording will be available soon after the call ends at https://www.huhtamaki.com/fi/sijoittajat/.
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Huhtamäki will divide its Fiber Foodservice Europe-Asia-Oceania business segment into two separate business segments: Fiber Packaging and Foodservice Europe-Asia-Oceania. The change will take effect no later than April 1, 2025.
“We are separating our Fiber Foodservice business into two business segments to serve our customers more effectively. With this strategic change, we support our profitable growth by strengthening our businesses and accelerating decision-making in a changing business environment. The change promotes our goal of being the number one choice for sustainable packaging solutions,” says Ralf K. Wunderlich, President and CEO of Huhtamäki.
The business segments were combined in 2020. In external reporting, the businesses have been reported separately, and the change has no impact on external reporting. The combination of businesses has achieved the targeted synergies and created conditions for growth in promising markets.
“By focusing again on their own areas of expertise, both segments can advance their innovations more effectively. The segments will continue close collaboration in product development, including smooth molded fiber products. With this change, we streamline our processes and clarify our responsibilities to achieve Huhtamäki’s strategic goals,” says Ralf K. Wunderlich.
The leaders of both business segments are members of the Group Executive Team. Sara Engber (56) has been appointed Executive Vice President, Fiber Packaging business segment and a member of the Group Executive Team. Fredrik Davidsson continues as a member of the Group Executive Team and as Executive Vice President, Foodservice Europe-Asia-Oceania segment.
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The dividend was not cut, even though there has been such an atmosphere in the news in recent days, e.g., Kauppalehti yesterday. I was a bit surprised by the idea of predicting that cut, but predictions do go wrong sometimes.
I will continue as an owner of Huhtamäki, with over 40 years of ownership in Huhtamäki behind me. Quite a few dividend marks and euros have already come in over the years.
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The dividend did not decrease. The dividend could have even increased. But this is perfectly fine as it is. There are resources available if good opportunities arise to grow by acquiring some operators.
I was left wondering how the distributable funds have increased so sharply from the comparison period in parentheses.
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In those Kauppalehti news reports, the dividend figures were probably reversed.. 1.1e from the previous year, and now 1.05e, even though it rose from 1.05e to 1.1e. I would think so. And I was greatly surprised by the reporting, as Huhtis is a dividend aristocrat after all.
I own (shares), with the intention of adding more from local dips. 
Edit.. typo..
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Rather slowly and surely, and that the upward trend continues..? Unlike, for example, Valmet.
Signed. Member of the Dividend (Aristocrat) Party.
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Yeah, the numbers were indeed reversed in the media… Our target is to pay 40-50% of comparable EPS as a dividend; the dividend proposal corresponds to a 44% level.
I’ll get back to you a bit later, our earnings call starts at 9:30.
/Kristian
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So here are the parent company’s distributable assets. If you look at the group’s equity, the change is not that significant. So these are mainly internal transfers.
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Analyst’s quick comments following Huhtamäki’s Q4 results.
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