The Mayr-Melnhof Group's FY 2016 consolidated sales rose by 4.2% to Euro 2,272.7 million and were thus Euro 91.2 million above the previous year's amount (2015: Euro 2,181.5 million). This increase is primarily due to the acquisition-related higher business volume at MM Packaging.
At Euro 213.7 million, operating profit was 6.9%, or Euro 13.8 million higher than in the previous year (2015: Euro 199.9 million). A clear increase in profit in the packaging division contrasted with a decline in the cartonboard division. The Group's operating margin was 9.4 % (2015: 9.2 %).
With the persistent low Euro key interest rate, financial income totaled Euro 3.1 million (2015: Euro 2.2 million) while financial expenses were Euro -6.1 million (2015: Euro -6.3 million).
2016 profit before tax increased by 9.8% to Euro 209.2 million after Euro 190.6 million in the previous year. Income tax expense amounted to Euro 55.8 million (2015: Euro 48.5 million), resulting in an effective Group tax rate of 26.7 % (2015: 25.4%).
Profit for 2016 thus rose by 8% to Euro 153.4 million (2015: Euro 142.1 million), with the net profit margin increasing slightly from 6.5% to 6.7%.
The Mayr-Melnhof Group was again able to maintain its position on the whole in 2016, a year characterized by little dynamics and intense competition on its European main market, increasing both sales and profit. Due to the wide geographical sales spectrum and close cooperation with customers from different consumer goods industries, both divisions achieved high levels of capacity utilization in spite of the weak market environment.
The packaging division provided noticeable growth and profit impulses, particularly as a result of the integration of the latest acquisition in France as well as a favorable product mix. In contrast, MM Karton's margins came under increasing pressure following a significant rise in the prices for recovered paper as from the third quarter. Group's consolidated sales rose by 4.2 % to Euro 2,272.7 million and were thus Euro 91.2 million above the previous year's amount (2015: Euro 2,181.5 million). This increase is primarily due to the acquisition-related higher business volume at MM Packaging.