| Finland

Inflation and soft consumer demand dent Huhtamäki’s 2023 revenues

Full-year sales and adjusted EBIT fell following lower first and second quarter demand but the packaging giant saw an easing of inflationary pressures in the second half of the year

Huhtamäki said reducing inventory and ongoing currency fluctuations negatively impacted sales | Photo credit: Huhtamäki


Huhtamäki has posted a decline in full-year sales and earnings as high inflation dented foodservice demand for its products.  

The Espoo-based single-use cup and packaging giant said total net sales fell 7% in the 12 months to 31 December 2023 to €4.16bn ($4.48bn). Additionally, adjusted EBIT fell 1% to €393m ($423m). 

Alongside ‘soft’ demand for its flexible packaging products, Huhtamäki said reducing inventory in the first half of the year and ongoing currency fluctuations also negatively impacted sales.  

However, demand showed ‘slight improvement’ in the second half of the year, particularly in its North American foodservice and retail channels, with lower raw material costs globally also easing profit margins. 

Huhtamäki expects market volatility to remain in 2024 but said its diversified product portfolio will provide resilience, with sales and profit margins forecast to improve. 

“In line with the previous years, we have proven our ability to deliver results in a volatile market environment, thanks to our diverse portfolio and the agility of our organisation. Our investments for growth started to yield benefits, and we have made progress towards our profitability ambition by driving initiatives to improve our competitiveness,” said Charles Héaulmé, President and CEO, Huhtamäki. 

Huhtamäki is a major global supplier of disposable coffee cups for quick service restaurants, coffee shops, retail stores, caterers and vending operators. It also produces packaging solutions for hot food-to-go, bakery products, ready meals, cosmetics and confectionery. 

In November 2022, the packaging giant announced a deal to manufacture home-compostable coffee capsules for Nespresso. The product launched in France and Switzerland in September 2023. 

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