Mayr-Melnhof reports earnings growth so far in 2025

Vienna-based recycled-content paperboard producer Mayr-Melnhof Karton AG (MM) has reported first half 2025 results that include a 340 percent net profit increase compared with the first six months of last year.

MM credits its significant earnings increase in part to a groupwide profit improvement program that helped boost its operating profit by 29 percent despite soft markets in light of a global overcapacity situation.

The company improved its profit picture despite the fact its 2.03 billion euros ($2.36 billion) in sales in the first half of this year was 0.7 percent lower compared with the same period in 2024.

MM says the cartonboard market in the first half of this year has “developed mainly sideways."

“Prices for recovered paper and pulp were below the previous year's average in the first quarter," the company says. "However, recovered paper prices picked up surprisingly strong in April before easing slightly in the summer.”

In the sustainability section of its website, MM says it uses 45 percent recycled fiber content in its cartonboard, and refers to itself as No. 1 in Europe for recycled cartonboard production.

“The MM Group achieved a significant earnings increase in the first half-year of 2025 as compared to the first half-year of the previous year,” CEO Peter Oswald says. “However, the market situation remained highly challenging with persistently weak consumer demand and sustained underutilization of capacities in Europe.

“While both Packaging divisions reported stable or slightly lower adjusted operating profit, Board & Paper achieved a noticeable earnings improvement compared to the previous year, primarily driven by cost savings, even though the current profit level remains unsatisfactory.”

The CEO says profits in MM’s Food & Premium Packaging business unit were assisted by the sale of former business unit the Tann Group.

“The second half-year will be particularly impacted by expenses from the annual maintenance standstills at Board & Paper” facilities, Oswald says.

“Management is confident to achieve more than 150 million euros ($174 million) in structural sustainable profit improvements by 2027 compared to 2024, excluding Tann Group operations and market fluctuations.

“Against the backdrop of persistently soft demand and overcapacities, we expect a continuation of the challenging market environment. Our primary objective is therefore to consistently enhance the competitiveness of the MM Group.”