The Finnish packaging and coffee cup manufacturer has seen demand return to pre-pandemic levels in most markets, achieving 31% sales growth in the first six months of 2022
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Huhtamäki said that sales had reached €2.2bn compared to the same period in 2021 | Photo credit: Huhtamäki
Reporting its financial results for the period 1 January to 30 June, Huhtamäki said it had successfully navigated supply chain constraints and geopolitical turbulence to achieve sales growth of 31%.
The packaging and coffee cup giant said that sales had reached €2.2bn ($2.2bn) compared to the same period in 2021 while operating profit grew 28% to reach €200m ($202m).
The company’s flexible packaging division led trading growth with 43% higher sales than the first six months of 2021, followed by its North America (29%) and Foodservice Europe-Asia-Oceania (23%) divisions.
Huhtamäki CEO Charles Héaulmé said the results were pleasing given current constraints and volatile market conditions.
In April 2022 Huhtamäki announced that it would divest its operations in Russia due to the ongoing invasion of Ukraine. The Finnish company has four manufacturing units in the country, with Russia representing 3% of the group’s total sales, approximately €108m ($116m).
Héaulmé also cited low demand in the Chinese market, limited raw material availability, particularly in North America, and significant inflation as ongoing headwinds.
However, the group states that trading conditions are still expected to improve compared to 2021, and its outlook for the remainder of 2022 is unchanged.
“We are pleased by our strong and consistent performance during the first half of the year. Our ability to handle adverse and volatile conditions emphasises the agility of our team, the efficiency of our global footprint and the resilience of our diverse portfolio. While uncertainty remains high in the global economy, we continue to execute on our long-term growth strategy,” said Héaulmé.
Headquartered in Espoo, Finland, Huhtamäki has operations in 38 countries and employs more than 20,000 staff globally. The company posted net sales of €3.6bn ($4bn) for 2021.