Huhtamaki Oyj delivered first quarter results that exceeded forecasts, reporting operating profits and per-share earnings ahead of consensus estimates while warning of potential margin pressure from rising polymer costs.
The Finnish packaging manufacturer recorded earnings before interest and taxes of 24.5 million, ahead of the consensus forecast of 91 million by 4%. Reported earnings per share were 0.56, beating the 0.53 consensus figure.
Group sales were up 1%, reversing a 2% decline seen in the fourth quarter of 2025 and the first quarter of 2025. The company attributed part of the sequential improvement to Easter timing effects.
Operational performance varied by business area. The fiber division and certain other segments were primary contributors to the quarterly upside. North America - which accounts for 35% of group earnings - posted 34 million, a 2% positive surprise against the forecast of 33 million. The fiber division reported 14 million in results versus the 12 million estimate.
Not all units matched expectations. The foodservice division delivered 17 million, missing the 19 million consensus by 11%. The flexible packaging segment returned 28.6 million, essentially in line with the 28 million estimate.
Management maintained its 2026 outlook, stating it expects trading conditions to remain relatively stable. At the same time, the company said it is taking action in its flexibles business in response to operational challenges and higher polymer costs, which it linked to the war in the Middle East.
The combination of an earnings beat and caution on input costs presents a mixed picture: the quarter showed pockets of strength, particularly in fiber and North America, but the flexibles business and polymer-driven cost inflation represent immediate pressure points for margins.
Implications for markets and sectors
- Packaging and materials sectors may face margin volatility as polymer prices rise.
- Foodservice and flexible packaging subsectors are highlighted as areas of operational sensitivity.
- Regional performance, notably North America, remains an important driver of group results.