ESPOO, Finland – Huhtamaki accelerates strategy implementation by starting a program which is expected to materially support the profitability of Huhtamaki with efficiency improvements leading to savings of approximately EUR 100 million over the next three years.
All cost levers will be addressed including potential restructuring to a more optimal manufacturing footprint, reducing input costs at an accelerated pace, and improving productivity globally.
The costs of the program are expected to be approximately EUR 80 million, which upon materialization will be treated as items affecting comparability. The program’s performance will be monitored and communicated on a regular basis.
Huhtamaki’s updated 2030 growth strategy was announced in March 2023. It is focused on scaling the profitable core for growth, innovating in sustainable packaging solutions for additional growth, and delivering world-class operational performance.
With this updated strategy the Company raised its long-term financial ambition to grow 5-6% p.a., reach 10-12% adjusted EBIT%, and deliver 13-15% adjusted ROI.
“Over the past two years considerable focus has gone into investing for capacity expansion in our core businesses and innovating in molded fiber and recyclable flexible packaging with proprietary technology. Investments in our new innovation areas are starting to yield results as production capacity is being deployed, further driving our growth agenda.
We have made good progress in the execution of our plans, and we see further potential in materially accelerating our financial performance.
With this announced program, we expect to make a clear step change, working on all productivity levers in our operations globally”, says Charles Héaulmé, President and CEO of Huhtamaki.
