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1. Company Snapshot

1.a. Company Description

Huhtamäki Oyj manufactures and sells packaging products in the United States, Germany, India, the United Kingdom, Australia, Thailand, China, South Africa, Russia, the United Arab Emirates, Findland, and internationally.It operates in foodservice packaging, flexible packaging, and fiber packaging business areas.The company offers single and double-wall paper cups, coffee cups, cold drinks cups, cup carriers, lids, accessories, and short run prints of customized paper cups; take away trays, containers, clamshells, scoops, bowls, wraps, and various accessories for take-away and dining; and egg trays, egg cartons, fruit trays, and wine bottle separators.


It also provides multilayer films, wrappers, labels, pouches, and various reclose and print options for coffee, tea, juice, energy drink, and alcoholic beverage packaging; and stand up pouches, food pouches, multilayer packaging, and foils for ice cream, soups, biscuits, confectionary, dry foods, and other retail foods.In addition, the company offers ready-to-eat pet food packaging, such as retort pouches and barrier laminates, as well as open and reclosable bags, and pouches in aluminum foil and non-foil transparent structures; packaging and labels for personal and home care products; tube laminates for toothpaste and other tubes; and blister packaging materials and pharmaceutical packaging.Further, it provides catering disposables and vending cups; food service paper and disposable tableware to foodservice operators, fast food restaurants, and coffee shops; packaging solutions for retail business; flexible packaging solutions.


Huhtamäki Oyj was founded in 1920 and is headquartered in Espoo, Finland.

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1.b. Last Insights on HUH1V

Huhtamäki Oyj's recent performance was hindered by inflationary pressures and regional challenges, despite a 3% increase in net sales and a robust EBIT margin in Q4 2024. The company's ability to navigate these market headwinds was a testament to its operational resilience. However, the lingering effects of these challenges are likely to persist, potentially impacting future growth.

1.c. Company Highlights

2. Huhtamaki Delivers Stable Performance Amid Challenging Environment

Huhtamaki reported a stable financial performance in Q1 2025, with net sales in line with Q1 2024, despite a 2% decline in comparable growth. Adjusted EBIT remained stable, with a margin of 9.8%, while adjusted EPS improved 7% year-over-year to $0.59, meeting analyst estimates. Capital expenditure decreased by €6.5 million, reflecting disciplined capital allocation. The company also made progress on its €100 million cost efficiency program, delivering €87 million in savings to date, with €11 million achieved in Q1. CEO Ralf Wunderlich emphasized the importance of efficiency improvements, noting, "These savings are critical to maintaining our profitability in a volatile environment."

Publication Date: Apr -25

📋 Highlights
  • Cost Efficiency Progress: Achieved €87 million in savings (€25 million cost to achieve) through efficiency improvements.
  • Stable Financial Performance: Net sales in line with Q1 2024, with a 2% decline in comparable growth.
  • Profitability Metrics: Adjusted EBIT margin remained stable at 9.8%, with adjusted EPS improving 7% to $0.59.
  • Fiber Packaging Growth: 10% growth in Fiber Packaging with a strong 12.8% margin.
  • Strategic Acquisitions: Acquired Selwyn Farms, a $20 million egg packaging business, supporting strategic growth in North America.

Segment Performance Highlights Divergence

The company’s segments showed mixed results. Foodservice saw a 4% decline in comparable growth, while North America experienced a 3% decline, partly due to Q4 pull-forward effects and Easter seasonality. Flexible Packaging improved its adjusted EBIT by €5 million, benefiting from a profitable mix focus. Fiber Packaging stood out with 10% growth and a 12.8% margin, driven by reliable supply, essential demand, and strong execution. Ralf Wunderlich highlighted Fiber Packaging’s resilience, stating, "Fiber’s performance underscores our ability to deliver in essential markets like egg packaging."

Valuation Metrics Reflect Conservative Pricing

Huhtamaki’s valuation metrics suggest a cautious investor sentiment. The stock trades at a P/E ratio of 14.92, below its historical average, indicating expectations for moderate growth. The ROIC of 12% reflects strong operational efficiency, while the Net Debt/EBITDA of 2.0 signals moderate leverage. The dividend yield of 4.99% remains attractive, supporting the stock’s appeal to income-focused investors. These metrics collectively suggest that the market is pricing in limited upside, despite the company’s progress on cost savings and strategic initiatives.

Outlook Points to Sequential Improvement

Management expressed optimism for the remainder of the year, with volumes expected to improve sequentially. The softness in Q1, particularly in January and February, is expected to reverse as the year progresses, supported by seasonality and the benefits of new investments coming online in Q3 and Q4. The company also remains on track to complete its cost efficiency program ahead of schedule, further bolstering profitability. With a strong balance sheet and a focus on bolt-on acquisitions, Huhtamaki appears well-positioned to navigate ongoing macroeconomic uncertainties.

3. NewsRoom

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Assessing Huhtamaki's (HLSE:HUH1V) Valuation as Investor Sentiment Cools

Nov -21

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Flexible Packaging Market worth $369.6 billion in 2030, at a CAGR of 4.2%, says MarketsandMarkets™

Nov -21

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Europe Flexible Packaging Market Key Segments, and Regional Dynamics with Manufacturers and Suppliers Data

Oct -31

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Asia Pacific Food Packaging Market Competitive Analysis, Value Chain & Trade Analysis 2025-2034

Oct -30

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Huhtamaki extends the maturity of EUR 450 million sustainability-linked syndicated revolving credit facility for a further period of one year

Oct -27

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3 European Dividend Stocks Yielding Up To 7.9%

Oct -23

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Huhtamaki publishes its Q3 2025 Interim Report on October 23, 2025

Oct -08

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Huhtamaki’s financial reporting 2026

Sep -17

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4. Business Breakdown

4.a. Revenues by Country

4.b. Revenues by Segment

5. Expected revenues mid-term growth (3.00%)

6. Segments

North America

Expected Growth: 3%

Huhtamäki Oyj's 3% growth in North America is driven by increasing demand for sustainable packaging, growth in the foodservice sector, and rising popularity of take-out and delivery services. Additionally, the company's strategic acquisitions and investments in the region have expanded its customer base and product offerings, contributing to its growth momentum.

Flexible Packaging

Expected Growth: 3%

Huhtamäki Oyj's Flexible Packaging segment growth is driven by increasing demand for sustainable and convenient packaging solutions, particularly in the food and beverage industry. Rising consumer preference for e-commerce and online shopping also fuels growth, as flexible packaging is well-suited for shipping and storage. Additionally, the company's focus on innovation and expansion into emerging markets contributes to its growth.

Foodservice Europe-Asia-Oceania

Expected Growth: 3%

Huhtamäki Oyj's Foodservice Europe-Asia-Oceania segment growth is driven by increasing demand for sustainable and convenient packaging, expansion in emerging markets, and strategic acquisitions. Growing popularity of take-out and delivery services, coupled with rising consumer awareness of environmental issues, fuels growth in the segment.

Fiber Packaging

Expected Growth: 3%

Huhtamäki Oyj's Fiber Packaging segment growth is driven by increasing demand for sustainable packaging, rising e-commerce sales, and growing consumer preference for eco-friendly products. Additionally, the company's strategic acquisitions and investments in emerging markets, such as Asia, are expected to fuel growth.

7. Detailed Products

Foodservice Packaging

Huhtamäki Oyj provides a wide range of foodservice packaging solutions, including cups, containers, lids, and utensils, designed for the food-to-go and quick-service industries.

Fiber Packaging

Huhtamäki Oyj offers sustainable fiber-based packaging solutions, including molded fiber and recycled paper products, for the packaging of eggs, fruits, and vegetables.

Films and Laminates

Huhtamäki Oyj provides a range of films and laminates for packaging applications, including food, pharmaceutical, and industrial uses.

Molded Fiber Products

Huhtamäki Oyj designs and manufactures molded fiber products, including packaging inserts, trays, and containers, for the packaging of electronics, cosmetics, and other consumer goods.

Specialty Packaging

Huhtamäki Oyj offers customized specialty packaging solutions for specific industries, including healthcare, beauty, and luxury goods.

8. Huhtamäki Oyj's Porter Forces

Forces Ranking

Threat Of Substitutes

Huhtamäki Oyj operates in the packaging industry, where substitutes are available, but they are not a significant threat. The company's focus on sustainable and innovative packaging solutions helps to differentiate it from substitutes.

Bargaining Power Of Customers

Huhtamäki Oyj's customers are primarily large consumer goods companies, which have some bargaining power. However, the company's strong relationships and customized solutions help to mitigate this power.

Bargaining Power Of Suppliers

Huhtamäki Oyj relies on suppliers for raw materials, such as paper and plastic. While suppliers have some bargaining power, the company's diversified supplier base and long-term contracts help to mitigate this power.

Threat Of New Entrants

The packaging industry has high barriers to entry, including significant capital investments and regulatory requirements. This makes it difficult for new entrants to compete with established players like Huhtamäki Oyj.

Intensity Of Rivalry

The packaging industry is highly competitive, with several large players competing for market share. Huhtamäki Oyj's focus on innovation and sustainability helps to differentiate it from competitors, but the company still faces intense rivalry.

9. SWOT Analysis

Strength

Weaknesses

Opportunities

Threats

10. Capital Structure

10.a. Balance Sheet

10.b. Weighted Average Cost of capital

Value
Debt Weight 47.36%
Debt Cost 6.94%
Equity Weight 52.64%
Equity Cost 6.96%
WACC 6.95%
Leverage 89.97%

11. Quality Control: Huhtamäki Oyj passed 5 out of 9 key points

12.a Historical Valuation

12.b Price/Earnings Ratio

12.c Margin Valuation

12.d Peers Valuation

Peers Group Analysis

Stock-Card
Vidrala

A-Score: 6.1/10

Value: 5.7

Growth: 7.4

Quality: 7.0

Yield: 3.8

Momentum: 3.0

Volatility: 9.7

1-Year Total Return ->

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Viscofan

A-Score: 5.9/10

Value: 4.5

Growth: 5.1

Quality: 7.2

Yield: 7.5

Momentum: 3.0

Volatility: 8.3

1-Year Total Return ->

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Verallia

A-Score: 5.9/10

Value: 6.5

Growth: 5.3

Quality: 3.8

Yield: 8.8

Momentum: 4.0

Volatility: 7.0

1-Year Total Return ->

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Stock-Card
DS Smith

A-Score: 5.7/10

Value: 8.3

Growth: 3.7

Quality: 3.8

Yield: 4.4

Momentum: 8.0

Volatility: 6.0

1-Year Total Return ->

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Stock-Card
Huhtamaki

A-Score: 5.4/10

Value: 6.4

Growth: 4.9

Quality: 5.4

Yield: 5.6

Momentum: 1.0

Volatility: 9.3

1-Year Total Return ->

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Stock-Card
Smurfit Kappa

A-Score: 3.3/10

Value: 3.3

Growth: 3.7

Quality: 3.0

Yield: 2.5

Momentum: 4.0

Volatility: 3.3

1-Year Total Return ->

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Peers Metrics

12.e Scoring Insights

12.f DCF BETA

Parameters

Short Term Growth

Short term Time

Long-Term Growth

WACC

Target Price

29.6$

Current Price

29.6$

Potential

-0.00%

Expected Cash-Flows