Due to COVID-19 pandemic, Huhtamaki withdraws its outlook for 2020 for now
Friday, March 27, 2020 2:15 pm
FINLAND (News release) -- The COVID-19 pandemic is creating disturbance in Huhtamaki's global trading conditions and the demand for food-on-the-go packaging is being significantly impacted. This has been accelerating and for this reason, the company has decided to withdraw its outlook for 2020 (published on February 13, 2020). The decline in quick service restaurant visits and overall traffic is driven by restrictions and regulations imposed by governments in order to contain the spread of the virus. It is possible that the decline in demand for food-on-the-go packaging will be partly offset by rising demand for food-on-the-shelf packaging which constitutes over 50% of the Group's business.
"We are focused on safeguarding the health and safety of our employees and on business continuity across our global operations. These unprecedented times remind us of our values and reinforce our commitment to our priorities: protect people, protect food, protect the planet. Our recently launched 2030 strategy sets us up to accelerate growth, drive competitiveness and focus on embedding sustainability in everything we do. We are committed to maintaining our strong balance sheet and sound financial position which will help us navigate this crisis. I am confident that Huhtamaki will come out stronger from this challenging period and continue to deliver for our customers in the future," says Charles Héaulmé, President and CEO.
Due to the unprecedented and accelerated situation caused by the COVID-19 and its impact on trading conditions, Huhtamaki's previous outlook for 2020 (published on February 13, 2020) is not valid anymore. Huhtamaki will provide a new outlook when impacts of the changing business environment on its trading conditions in 2020 can be assessed in a reliable manner.
Previous outlook for 2020 (published on February 13, 2020):
The Group's trading conditions are expected to remain relatively stable during 2020. The good financial position and ability to generate a positive cash flow will enable the Group to address profitable growth opportunities. Capital expenditure is expected to be approximately at the same level as in 2019 with the majority of the investments directed to business expansion.