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Investing.com -- Shares of Huhtamaki Oyj (HEL:HUH1V) climbed 5% following the company's fourth-quarter earnings report, which surpassed market expectations. The Finnish packaging company reported a fourth-quarter EBIT of €110 million, an 8% increase over the consensus estimate of €105 million, driven by strong performance in its Fiber, Foodservice EAO, and Flexibles segments.
The company's earnings per share (EPS) also exceeded forecasts, coming in at €0.68 compared to the €0.63 consensus. This positive financial outcome was attributed to the benefits realized from the optimization of Huhtamaki's manufacturing footprint, as well as cost savings that reached €76 million, outpacing the targeted €100 million savings program and ahead of schedule.
Despite the positive results, the company remains cautious, emphasizing the need for a consumption recovery to fully leverage its operating capabilities. Huhtamaki's outlook for 2025 indicates expectations for trading conditions to remain "relatively stable," which analysts interpret as a continuation of the second half of 2024's trend, potentially delivering low single-digit (LSD+) volume growth.
Analysts from Jefferies commented on the earnings, stating, "Overall, with 4Q beat today delivering €110m EBIT, we do not run rate this quarter (given some likely promo activity boost). However, we do not expect material changes to 2025 EBIT cons of €439m which we see supported. We see the shares higher today."
The fourth-quarter sales growth of 3% was bolstered by customer promotional activity, a notable improvement from the stagnant growth in the third quarter.
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