Directors’ Report and Financial Statements 2025 | 1
HUHTAMÄKI OYJ
DIRECTORS’ REPORT AND
FINANCIAL STATEMENTS
2025
BUSINESS ID: 0140879-6
This ESEF report is a translation and has been published voluntarily.
Directors’ Report and Financial Statements 2025 | 2
Table of content
Directors’ report 2025
............................................................................................................................................................................................
4
Financial review
...................................................................................................................................................................................................
4
Risk review
..........................................................................................................................................................................................................
12
Information for shareholders
.......................................................................................................................................................................
15
Sustainability statement
................................................................................................................................................................................
19
General information
....................................................................................................................................................................................
19
Environmental information
......................................................................................................................................................................
38
Social information
........................................................................................................................................................................................
67
Governance information
...........................................................................................................................................................................
78
Appendix to the sustainability statement
..........................................................................................................................................
82
Financial statements
............................................................................................................................................................................................
91
Consolidated financial statements
.............................................................................................................................................................
91
Consolidated statement of income (IFRS)
.........................................................................................................................................
91
Group statement of comprehensive income (IFRS)
.......................................................................................................................
92
Consolidated statement of financial position (IFRS)
......................................................................................................................
93
Consolidated statement of changes in equity (IFRS)
.....................................................................................................................
94
Consolidated statement of cash flows (IFRS)
...................................................................................................................................
95
Notes to the consolidated financial statements
....................................................................................................................................
96
1. Basis of preparation
...............................................................................................................................................................................
96
1.1. CORPORATE INFORMATION
..................................................................................................................................................
96
1.2. BASIS OF PREPARATION
...........................................................................................................................................................
96
1.3. ADOPTION OF NEW AND AMENDED STANDARDS AND INTERPRETATIONS
...............................................
96
1.4. PRINCIPLES OF CONSOLIDATION
........................................................................................................................................
97
1.5. FOREIGN CURRENCY TRANSLATION
.................................................................................................................................
98
1.6. USE OF SIGNIFICANT ESTIMATES AND JUDGEMENTS
..............................................................................................
98
2. Financial performance
...........................................................................................................................................................................
99
2.1. SEGMENT AND REVENUE
.........................................................................................................................................................
99
2.2. EMPLOYEE BENEFITS
................................................................................................................................................................
101
2.3. DEPRECIATION, AMORTIZATION AND IMPAIRMENT
.............................................................................................
104
2.4. OTHER OPERATING INCOME
...............................................................................................................................................
105
2.5. OTHER OPERATING EXPENSES
............................................................................................................................................
105
2.6. INCOME TAXES
............................................................................................................................................................................
106
2.7. EARNINGS AND DIVIDEND PER SHARE
...........................................................................................................................
108
3. Acquisitions and capital expenditure
............................................................................................................................................
109
3.1. BUSINESS COMBINATIONS
...................................................................................................................................................
109
3.2. GOODWILL AND INTANGIBLE ASSETS
.............................................................................................................................
110
Directors’ Report and Financial Statements 2025 | 3
3.3. GOODWILL IMPAIRMENT TESTING
...................................................................................................................................
112
3.4. TANGIBLE ASSETS
.......................................................................................................................................................................
113
3.5. NON-CURRENT ASSETS HELD FOR SALE
........................................................................................................................
115
4. Working capital
......................................................................................................................................................................................
117
4.1. INVENTORIES
...............................................................................................................................................................................
117
4.2. TRADE AND OTHER CURRENT RECEIVABLES
..............................................................................................................
117
4.3. PROVISIONS
..................................................................................................................................................................................
118
4.4. TRADE AND OTHER CURRENT LIABILITIES
...................................................................................................................
119
4.5. SUPPLIER FINANCE ARRANGEMENTS
.............................................................................................................................
119
5. Capital structure and financial items
.............................................................................................................................................
120
5.1. NET FINANCIAL ITEMS
.............................................................................................................................................................
120
5.2. INTEREST-BEARING RECEIVABLES
....................................................................................................................................
120
5.3. CASH AND CASH EQUIVALENTS
.........................................................................................................................................
121
5.4. SHAREHOLDERS’ EQUITY
.......................................................................................................................................................
121
5.5. INTEREST-BEARING LIABILITIES
.........................................................................................................................................
124
5.6. FINANCIAL ASSETS AND LIABILITIES BY CATEGORY
................................................................................................
125
5.7. MANAGEMENT OF FINANCIAL RISKS
...............................................................................................................................
127
6. Other disclosures
..................................................................................................................................................................................
132
6.1. CLIMATE RELATED MATTERS
...............................................................................................................................................
132
6.2. RELATED PARTY TRANSACTIONS
......................................................................................................................................
132
6.3. SHARE-BASED PAYMENTS
.....................................................................................................................................................
134
6.4. LEASES
..............................................................................................................................................................................................
136
6.5. COMMITMENTS
...........................................................................................................................................................................
137
6.6. LITIGATIONS
.................................................................................................................................................................................
137
6.7. SIGNIFICANT EVENTS AFTER THE REPORTING PERIOD
.........................................................................................
138
Subsidiaries
.......................................................................................................................................................................................................
139
Parent company financial statements
....................................................................................................................................................
141
Signatures of the Board of Directors’ Report and Financial Statements
...................................................................................
150
Auditor’s Report
..............................................................................................................................................................................................
151
Assurance Report on the Sustainability Statement
...........................................................................................................................
156
Independent Auditor's Report on the ESEF Consolidated Financial Statements of Huhtamäki Oyj
.............................
159
Definitions for performance measures
.....................................................................................................................................................
161
Key figures and financial development
.....................................................................................................................................................
162
Share and shareholders
...................................................................................................................................................................................
163
Directors’ Report and Financial Statements 2025 | 4
Directors’ report 2025
Financial review
Operating environment
In 2025, demand continued to be impacted by consumers’ cautiousness. Consumption remained muted as a result of the
impact of inflation, geopolitical tensions and an overall uncertainty about the economy. The situation around the US tariffs
also created uncertainty. In addition, there were significant negative currency movements, particularly as the US dollar
weakened against the euro.
Throughout the year, there were material differences in the development of demand by categories and geographies. In
North America, demand improved in the foodservice market and remained close to the previous year’s level in the retail
and consumer goods categories. In consumer goods, the demand for ice cream packaging decreased, while it increased for
egg packaging. In other foodservice markets and for flexible packaging demand remained muted, mainly as a result of the
impact of inflation on consumers. Demand for fiber packaging products increased, driven by a strong demand for egg
packaging.
During 2025, most raw material prices did not change materially. Prices for paperboard remained close to the level seen in
2024, plastics and virgin fiber prices decreased somewhat while recycled paper prices increased. Out of the other key cost
components, labor costs increased globally, however less than in 2024. Transportation and energy costs remained close to
the previous year’s level.
Strategic development
With the 2030 strategy, Huhtamaki aims to be the first choice in sustainable packaging solutions. In early 2025, the
company redefined three value drivers to support strategy implementation and deliver shareholder value. These are
Profitable growth supported by all levers, Disciplined capital allocation, and Accountability and speed of execution. During
the year, the company made significant progress in these value drivers.
To deliver sustained shareholder value, it is essential to create profitable growth, both organically and inorganically.
Organic growth is driven by an increased emphasis on building and continuously improving relationships with both existing
and potential customers. In particular, Huhtamaki is committed to deepening engagement with regional and local clients
while maintaining strong partnerships with major global customers. Inorganic growth will be driven through bolt-on
acquisitions, where the company has clear and stringent criteria for potential acquisition targets.
To support the growth objectives, Huhtamaki continues to invest in essential capabilities and resources. However, the
company implemented a more rigorous discipline in capital allocation, applying stricter internal prioritization to investment
projects. The investments remain focused on those projects that are expected to deliver the highest returns, with particular
emphasis on opportunities within the molded fiber space. Following several years of elevated capital expenditure,
Huhtamaki moderated capex levels in 2024, with further reduction in 2025. The aim is for capital expenditure to continue
to enable capacity growth. The company’s aim is to allocate capital in roughly equal proportions to maintenance, efficiency
improvements, and growth initiatives, with a smaller share dedicated to other areas such as safety and compliance with
regulatory requirements.
To facilitate growth and ensure disciplined capital allocation, Huhtamaki empowered its business segments with clear
accountability, thereby enhancing the speed of execution. During the year, the former Fiber Foodservice Europe-Asia-
Oceania segment was separated into two segments: Foodservice Packaging and Fiber Packaging. This restructuring
enables each business to concentrate on driving growth, as they serve different product categories and customer bases,
with only limited overlap.
As increased accountability was given to segments, Huhtamaki also reorganized the functional structure. Functional
support was realigned from the Group level to the segment level, including areas such as Human Resources, Sustainability,
and local IT support. Group functions now primarily serve as centers of expertise — providing governance, coordination,
and support to enable value creation across the company. At the same time, global procurement activities were centralized
under a Group function to drive further cost efficiencies through consolidated purchasing. All these changes were swiftly
implemented during the first half of 2025.
Directors’ Report and Financial Statements 2025 | 5
Key figures
EUR million
2025
2024
2023
Net sales
3,960.2
4,126.3
4,168.9
Comparable net sales growth
-1%
-0%
-2%
Adjusted EBITDA¹
613.0
622.2
590.1
Margin¹
15.5%
15.1%
14.2%
EBITDA
613.3
595.6
621.2
Adjusted EBIT²
405.1
416.9
392.6
Margin²
10.2%
10.1%
9.4%
EBIT
320.5
372.3
380.9
Adjusted EPS, EUR³
2.48
2.48
2.32
EPS, EUR
1.83
2.14
1.97
Adjusted ROI²
11.8%
12.1%
11.2%
Adjusted ROE³
13.6%
13.4%
13.2%
ROI
9.5%
10.8%
10.9%
ROE
10.1%
11.6%
11.8%
Capital expenditure
171.9
247.9
318.7
Free Cash Flow
311.2
215.8
321.4
1
Excluding IAC of EUR 0.4 million in 2025 (EUR -26.5 million in 2024 and EUR 31.1 million in 2023).
2
Excluding IAC of EUR -84.5 million in 2025 (EUR -44.7 million in 2024 and EUR -11.7 million in 2023).
3
Excluding IAC of EUR -68.0 million in 2025 (EUR -35.1 million in 2024 and EUR -35.9 million in 2023).
Unless otherwise stated, all comparisons in this report are compared to the corresponding period in 2024. Figures of return on investment (ROI), return
on equity (ROE) and return on net assets (RONA) as well as net debt to EBITDA presented in this report are calculated on a 12-month rolling basis.
IAC includes, but is not limited to, material restructuring costs and acquisition related costs (gains and losses on business combinations, professional and
legal fees, material purchase price accounting adjustments for inventory, material purchase price amortization of intangible assets and changes in
contingent considerations) as well as material impairment losses and reversals, gains and losses relating to sale of intangible and tangible assets,
implementation costs concerning large projects with SaaS cloud computing technology, fines and penalties imposed by authorities and extraordinary
taxes.
The figures in the tables are exact figures and consequently the sum of individual figures may deviate from the sum presented. Key figures have been
calculated using exact figures
.
Net sales by business segment
EUR million
2025
2024
Change
Foodservice Packaging
936.2
989.6
-5%
North America
1,405.3
1,460.1
-4%
Flexible Packaging
1,249.5
1,322.5
-6%
Fiber Packaging
379.7
363.2
5%
Elimination of internal sales
-10.5
-9.1
Group
3,960.2
4,126.3
-4%
Comparable net sales growth by business segment
2025
2024
2023
Foodservice Packaging
-4%
-5%
2%
North America
-0%
0%
2%
Flexible Packaging
-2%
1%
-9%
Fiber Packaging
8%
6%
7%
Group
-1%
-0%
-2%
Due to a 3% negative currency impact, the Group’s net sales decreased 4% to EUR 3,960.2 million (EUR 4,126.3 million)
during the reporting period. Comparable net sales growth was -1%. Despite higher sales prices, net sales were weighed on
by currency movements and lower sales volumes. Comparable net sales increased in the Fiber Packaging segment,
Directors’ Report and Financial Statements 2025 | 6
remained stable in North America, and decreased in Foodservice Packaging and Flexible Packaging. Foreign currency
translation impact on the Group’s net sales was EUR -125.1 million (EUR -37.3 million) compared to 2024 exchange rates.
Net sales by segment, 2025
Net sales by segment, 2024
Adjusted EBIT by business segment
Items affecting comparability
EUR million
2025
2024
Change
2025
2024
Foodservice Packaging
86.7
91.0
-5%
-48.6
-15.1
North America
163.1
203.4
-20%
-14.3
-7.6
Flexible Packaging
115.1
94.2
22%
-13.6
-16.6
Fiber Packaging
50.4
43.5
16%
-0.3
-2.2
Other activities
-10.2
-15.2
-7.7
-3.2
Group
405.1
416.9
-3%
-84.5
-44.7
Adjusted EBIT by segment, 2025
Adjusted EBIT by segment, 2024
Adjusted EBIT margin by business segment
2025
2024
2023
Foodservice Packaging
9.3%
9.2%
9.4%
North America
11.6%
13.9%
12.9%
Flexible Packaging
9.2%
7.1%
6.6%
Fiber Packaging
13.3%
12.0%
11.6%
Group Total
10.2%
10.1%
9.4%
The Group’s adjusted EBIT decreased to EUR 405.1 million (EUR 416.9 million) and reported EBIT was EUR 320.5 million
(EUR 372.3 million). Adjusted EBIT decreased by 3% due to the negative impact from currency movements, lower sales
volumes, increased labor costs and IT investments. At the same time, the company’s actions to improve profitability had a
positive impact. The Group’s adjusted EBIT margin increased and was 10.2% (10.1%). Foreign currency translation impact
on the Group’s earnings was EUR -9.0 million (EUR -4.1 million).
Adjusted EBIT excludes EUR -84.5 million (EUR -44.7 million) of items affecting comparability (IAC), including costs of
implementing
operational efficiency measures. The main item was a net impairment of EUR 39 million in Q2, inclusive of
contractual compensations. This was related to a restructuring in the Foodservice Packaging segment, consolidating
production.
Directors’ Report and Financial Statements 2025 | 7
Adjusted EBIT and IAC
EUR million
2025
2024
Adjusted EBIT
405.1
416.9
Acquisition related costs
-0.6
-1.1
Restructuring gains and losses, including writedowns of related assets
-58.9
-25.1
PPA amortization
-7.5
-8.8
Settlement and legal fees of disputes
-1.8
-2.0
Property damage incidents
0.1
-1.5
Implementation costs concerning large projects with SaaS cloud computing technology
-16.0
-6.1
EBIT
320.5
372.3
Net financial expenses were EUR 59.5 million (EUR 71.8 million), mainly due to lower interest rates. Tax expense was EUR
62.2 million (EUR 68.7 million). The effective tax rate was 24% (23%). Profit for the period was EUR 198.8 million (EUR
231.8 million). Adjusted earnings per share (EPS) were EUR 2.48 (EUR 2.48) and reported EPS EUR 1.83 (EUR 2.14).
Adjusted EPS is calculated based on adjusted profit for the period attributable to equity holders of parent company, which
excludes EUR -68.0 million (EUR -35.1 million) of IAC.
Adjusted profit and IAC
EUR million
2025
2024
Adjusted profit for the period attributable to equity holders of the parent company
259.8
259.2
IAC in EBIT
-84.5
-44.7
IAC in Financial items
0.8
-0.4
IAC Tax
14.9
10.5
IAC attributable to non-controlling interest
0.9
-0.5
Profit for the period attributable to equity holders of the parent company
191.8
224.1
Statement of financial position and cash flow
The Group’s net debt decreased and was EUR 1,176.5 million (EUR 1,215.7 million) at the end of December. The level of
net debt corresponds to a gearing ratio of 0.61 (0.57). Net debt to EBITDA ratio (excluding IAC) was 1.9 (2.0). Average
maturity of external committed credit facilities and loans was 3.6 years (3.1 years).
On June 18, 2025, Huhtamaki signed a EUR 150 million freely transferable loan agreement (Schuldschein). The loan was
divided into two floating rate and two fixed rate tranches with maturities of 5 and 7 years. Huhtamaki will use the funds for
refinancing and general corporate purposes of the Group.
On August 28, 2025, the company issued EUR 300 million of 6-year senior unsecured notes under the EMTN (Euro
Medium Term Note) programme. The notes bear an interest at the rate of 3.50 per cent per annum. The notes were
allocated to approximately 90 investors. The notes were listed on Euronext Dublin. Huhtamaki used the net proceeds from
the issued notes for the partial repurchases of its existing notes due 2026 and 2027, and for other general corporate
purposes of the Group.
On October 27, 2025, the company extend the maturity of a EUR 450 million sustainability-linked syndicated revolving
credit facility loan agreement for a further period of one year in accordance with the extension option of the loan
agreement. The new termination date is November 8, 2030.
Capital expenditure decreased and was EUR 171.9 million (EUR 247.9 million) due to an increased focus on capital
discipline. The largest investments for business expansion were directed to increase capacity Fiber Packaging. The Group’s
free cash flow was EUR 311.2 million (EUR 215.8 million). The main reason for the increase in free cash flow was lower
capital expenditures.
Cash and cash equivalents were EUR 378.6 million (EUR 317.1 million) at the end of December and the Group had EUR
450.0 million (EUR 402.1 million) of unused committed credit facilities available.
Directors’ Report and Financial Statements 2025 | 8
Total assets on the statement of financial position were EUR 4,565.9 million (EUR 4,893.5 million).
Three-year program to accelerate strategy implementation and to bring MEUR
100 cost savings
On November 30, 2023, Huhtamaki announced that the company is accelerating the strategy implementation by starting
a program which was expected to materially support the profitability with efficiency improvements leading to savings of
approximately EUR 100 million over three years.
The company has completed the program. By the end of Q2 2025, the program generated total cost savings of
approximately EUR 100 million, significantly compensating for the continued high cost inflation.
The total costs of the program were EUR 73 million, below the originally expected approximately EUR 80 million. These
costs were treated as items affecting comparability, including positive impacts from divestment of real estate and
contractual compensations.
During Q2 2025, Huhtamaki made a net impairment of EUR 39 million, inclusive of contractual compensations. This was
related to a restructuring in the Foodservice Packaging segment, consolidating production.
Significant events after the reporting period
On January 30, 2026, Huhtamaki announced the appointment of Riikka Tieaho as Executive Vice President, Sustainability,
Corporate Affairs & Legal, General Counsel and member of the GET. She will start in her role no later than June 1, 2026,
report to President and CEO Ralf K. Wunderlich and be based in Espoo, Finland.
Directors’ Report and Financial Statements 2025 | 9
Business review by segment
Foodservice Packaging
EUR millio
n
2025
2024
Change
Net sales
936.2
989.6
-5%
Comparable net sales growth
-4%
-5%
Adjusted EBIT¹
86.7
91.0
-5%
Margin¹
9.3%
9.2%
Adjusted RONA¹
10.3%
10.3%
Capital expenditure
29.1
66.3
-56%
Operating cash flow¹
131.4
98.5
33%
Items affecting comparability (IAC)
-48.6
-15.1
¹ Excluding IAC.
Demand for foodservice packaging remained subdued during the year. Prices of raw materials remained close to the level
in 2024.
Net sales in the Foodservice Packaging segment decreased and comparable net sales growth was -4%. Sales prices
increased, but there was a negative impact from lower sales volumes and unfavorable currency movements.
Net sales
decreased in most markets, particularly the UK.
The impact of currency movements on the segment’s reported net sales was EUR -19.5 million.
The segment’s adjusted EBIT decreased due to lower sales volumes. At the same time, actions to improve profitability had
a positive impact on profitability, improving the adjusted EBIT margin. Capital expenditure was decreased, reflecting focus
on capital discipline.
The
impact
of
currency
movements
on
the
segment’s
reported
earnings
was
EUR
-1.3
million.
North America
EUR million
2025
2024
Change
Net sales
1,405.3
1,460.1
-4%
Comparable net sales growth
-0%
0%
Adjusted EBIT¹
163.1
203.4
-20%
Margin¹
11.6%
13.9%
Adjusted RONA¹
15.2%
19.6%
Capital expenditure
55.2
83.9
-34%
Operating cash flow¹
167.2
219.5
-24%
Items affecting comparability (IAC)
-14.3
-7.6
¹ Excluding IAC.
Demand improved somewhat from the previous year’s level, but with differences between categories. Prices of most raw
materials remained close to the level in 2024.
Net sales in the North America segment decreased and the comparable net sales growth was -0%. Sales volumes increased
while sales prices and the weaker US dollar had a negative impact. Net sales increased in foodservice, but decreased in
retail and consumer goods. In consumer goods, net sales increased driven by the ramp-up of egg carton capacity in the
Hammond, Indiana site and the acquisition of Zellwin Farms during Q2 2025, while ice cream packaging sales decreased.
The impact of currency movements on the segment’s reported net sales was EUR -60.0 million.
The segment’s adjusted EBIT decreased due to a weaker US dollar, unfavorable sales prices and mix and increased
operational costs, partly related to the capacity expansion in Hammond, Indiana and Paris, Texas.
The impact of currency movements on the segment’s reported earnings was EUR -6.9 million.
Directors’ Report and Financial Statements 2025 | 10
Flexible Packaging
EUR million
2025
2024
Change
Net sales
1,249.5
1,322.5
-6%
Comparable net sales growth
-2%
1%
Adjusted EBIT¹
115.1
94.2
22%
Margin¹
9.2%
7.1%
Adjusted RONA¹
9.1%
7.1%
Capital expenditure
34.4
69.0
-50%
Operating cash flow¹
138.8
84.1
65%
Items affecting comparability (IAC)
-13.6
-16.6
¹ Excluding IAC.
Demand for flexible packaging remained subdued. Prices of raw materials decreased somewhat compared to 2024.
During 2025, the Flexible Packaging segment focused on profitability improvement with a special focus on
underperforming units. Net sales in the segment decreased in most markets and comparable net sales growth was -2%.
Net sales were supported by sales prices and mix, while sales volumes and unfavorable currency movements had a negative
impact.
The impact of currency movements on the segment’s reported net sales was EUR -40.8 million.
The segment’s adjusted EBIT increased significantly, supported by increased sales prices, lower transportation and energy
costs as well as actions to improve profitability. Adjusted EBIT improved in most markets. Capital expenditure decreased,
reflecting focus on capital discipline.
The impact of currency movements on the segment’s reported earnings was EUR -3.1 million.
Fiber Packaging
EUR million
2025
2024
Change
Net sales
379.7
363.2
5%
Comparable net sales growth
8%
6%
Adjusted EBIT¹
50.4
43.5
16%
Margin¹
13.3%
12.0%
Adjusted RONA¹
18.4%
14.6%
Capital expenditure
52.7
28.1
87%
Operating cash flow¹
16.0
42.6
-63%
Items affecting comparability (IAC)
-0.3
-2.2
¹ Excluding IAC.
Overall demand for fiber-based egg and fruit packaging improved, but remained stable for food on-the-go products. The
prices of recycled fiber increased compared to 2024.
Net sales in the Fiber Packaging segment increased and the comparable net sales growth was 8%. Net sales increased
driven by both pricing and sales volumes, while there was an unfavorable impact from currency movements and a lower
amount of external machine sales. Net sales increased in most markets.
The impact of currency movements on the segment’s reported net sales was EUR -5.1 million.
The segment’s adjusted EBIT increased, supported by higher sales prices and volumes. The impact on profitability from
increased costs for raw materials, labor and transportation was offset by pricing actions. At the same time, there was a
negative impact from a fire at one of the sites in South Africa in May.
The impact of currency movements on the segment’s reported earnings was EUR -0.4 million.
Directors’ Report and Financial Statements 2025 | 11
Personnel
Number of Personnel
December 31, 2025
December 31, 2024
Change
Foodservice Packaging
3,929
4,049
-3%
North America
4,429
4,300
3%
Flexible Packaging
7,238
7,446
-3%
Fiber Packaging
1,599
1,739
-8%
Corporate
195
260
-25%
Group
17,390
17,794
-2%
At the end of December 2025, the Group had a total of 17,390 (17,794) employees. The number of employees was 2%
lower than in the comparison period, due to efficiency improvements to drive competitiveness.
Personnel by segment on December 31, 2025
Personnel by segment on December 31, 2024
Changes in management
On January 8, 2025, Huhtamaki announced the appointment Ralf K. Wunderlich as President and CEO effective on
January 15, 2025 when the Company’s previous President and CEO Charles Héaulmé stepped down.
On February 14, 2025,
Huhtamaki announced that Sara Engber was appointed President, Fiber Packaging and member of
the Global Executive Team (GET). She reports to President and CEO Ralf K. Wunderlich and is based in Espoo, Finland. The
appointment follows the decision in which Huhtamaki separated the Fiber Foodservice business segment into two distinct
business segments, Fiber Packaging and Foodservice Packaging. In external reporting, the businesses were already
reported separately.
On March 18, 2025, Huhtamaki announced the appointment of Changsheng Wu as Executive Vice President, Procurement
and member of the GET, effective April 1, 2025. He reports to President and CEO Ralf K. Wunderlich and is based in Espoo,
Finland.
On April 1, 2025, Huhtamaki announced changes to empower business segments to accelerate execution of its 2030
profitable growth strategy. Changes were made to the organizational structure of the Sustainability and Communications
as well as the Strategy and Business Development functions. With these changes the GET was streamlined, as Salla
Ahonen, Executive Vice President Sustainability and Communications, decided to leave and Wilhelm Wolff, previously
Executive Vice President Strategy and Business Development, stepped down from the GET.
On May 27, 2025, Huhtamaki announced that the previously appointed President of Flexible Packaging segment, Axel
Glade, joined Huhtamaki sooner than previously announced, on July 1, 2025. He reports to President & CEO Ralf K.
Wunderlich and is based in Espoo, Finland.
On June 18, 2025, Huhtamaki announced that Johan Rabe, Executive Vice President, Digitalization and Process
Performance, and a member of the GET, decided to leave Huhtamaki.
On July 3, 2025, Huhtamaki announced that Ingolf Thom, Executive Vice President, HR and Safety, and member of the
GET, decided to leave Huhtamaki. At the same time, Katariina Kravi was appointed Executive Vice President, Human
Directors’ Report and Financial Statements 2025 | 12
Resources, Safety and Communications, and member of the GET, effective January 1, 2026. She reports to President and
CEO Ralf K. Wunderlich and is based in Espoo, Finland.
On July 28, 2025, Huhtamaki announced that Sami Pauni, Executive Vice President, Sustainability, Corporate Affairs and
Legal, and a member of the GET, decided to leave Huhtamaki.
Short-term risks and uncertainties
Decline in consumer demand, inflation in key cost items (including raw materials, labor, distribution and energy), potential
geopolitical escalation, movements in currency rates and trade tariffs are considered to be relevant short-term business
risks and uncertainties in the Group's operations. Economic and financial market conditions, availability of raw materials
as well as a and natural disasters can also have an adverse effect on the implementation of the Group's strategy and on its
business performance and earnings.
Outlook for 2026
The Group’s trading conditions are expected to remain relatively stable during 2026. The good financial position will enable
the Group to address profitable growth opportunities.
Risk review
Risk management
Risk management at Huhtamaki aims
to
identify
potential events that may affect the achievement of Huhtamaki’s
objectives as outlined in its 2030 Strategy. Its purpose is to manage risks to a level that the Group is capable and prepared
to accept, so that there is reasonable assurance and predictability regarding the achievement of the Group’s objectives.
The aim is also to enable efficient allocation of resources and risk management efforts.
The Group Enterprise Risk Management (ERM) Policy defines the objectives, scope and responsibilities of risk
management. Efficient risk management ensures timely identification and assessment of opportunities and risks in the
short, medium, and long term, as well as relevant measures to manage them. Detailed risk management procedures are
described in the Group’s ERM framework and process guidelines. The overall risk management process of the Group
follows the principles of the Enterprise Risk Management (ERM) framework of Committee of Sponsoring Organizations of
the Treadway Commission (COSO), and ISO 31000 Risk Management Standard. Further, Huhtamaki has tailored its ERM
processes to meet its own needs.
To systematize and facilitate the identification of risks, they are categorized as strategic, operational and financial risks.
These categories are closely aligned with the objectives of Huhtamaki, with sustainability and compliance embedded in all
of them. Huhtamaki assesses risks in terms of their impact and the likelihood of their occurrence. A risk impact is considered
in terms of impact on the organization’s annual EBIT. The likelihood of a risk occurring is generally considered in terms of
the expected frequency of occurrence. To further evaluate the residual risk level when risk controls are in place, Huhtamaki
assesses the effectiveness of those controls over the impact and likelihood of the risk.
Enterprise Risk Management is supported by several specific risk assessments, including Double Materiality Assessment
(DMA), Climate Change scenario analysis, and a property risk control program. These assessments help identify and
manage various risks across the organization.
Risk review process 2025
In 2025, businesses and Group functions identified and assessed strategic, operational and financial risks and
opportunities against the impact on the achievement of the strategic priorities and performance objectives. These risk
assessment results were consolidated to the Group level. Risk treatment actions were defined to reach acceptable risk
levels at each stage.
Directors’ Report and Financial Statements 2025 | 13
The acceptable risk levels associated with appropriate risk management efforts were first evaluated by the Global
Executive Team, then reviewed by the Audit Committee of the Board of Directors and finally approved by the Board of
Directors. Agreed risk management efforts will be conducted and monitored during 2026.
During 2025,
the key risks identified in the 2024 risk assessment process were monitored to assess their existing and
newly implemented controls and any changes in the risk level itself. Actions to manage those risks were planned and
executed at the Group and segment level. Global Risk Management function facilitated risk surveys for business segments
and group functions to follow the changes in the risk sentiment.
Most significant strategic risks
Macro level uncertainties include geopolitical risks, macroeconomic risks and recession risks. Ongoing wars and conflicts,
such as in Ukraine and Middle East region may expand and new conflicts may arise. Unstable political conditions and
geopolitical instability increase the uncertainties in global trade and worsen business conditions. Further, tariffs and other
trade barriers may slow down investments and economic growth in impacted geographies. Hyperinflation and high interest
rates and high volatility in exchange rates could worsen the business conditions some market areas. Economic downturns
affect customer and consumer behavior and purchasing power. Huhtamaki is actively monitoring the developments so that
it can react to changes relevant in its business environment.
Changes in competitive landscape, in consumer and customer preferences as well as in technologies and materials present
major opportunities but also risks for Huhtamaki. Product commoditization may accelerate and lead to intensified price
competition. Low-cost imports and market consolidation may also affect competition.
Large customers offer growth opportunities, but dependence on large customers may also present a risk in case significant
portion of revenue comes from a small number of customers. Losing a large customer could affect also capacity utilization.
Understanding consumers enables Huhtamaki to realize business opportunities in building long-term sustainable growth
in partnership with its customers. Activities to manage the threats and seize the opportunities involve active dialogue with
the customers to develop ways to increase value and understand Huhtamaki´s competitive position, comprehensive
commercial excellence program as well as cross-functional and cross-segment collaboration at Huhtamaki.
Changes in the business environment driven by regulation and sustainability present significant risks and opportunities.
The company’s future growth and success depend on its continued ability to predict and respond to changes and its ability
to innovate and develop new sustainable products and solutions in a timely manner. Regulatory changes may introduce
material bans and other packaging related regulations, including those related to recyclability, recycled content
requirements, single-use plastics, compostability, supply chain management and extended producer responsibility
impacting packaging industry. Further, these regulatory changes include a level of unpredictability, especially in certain
geographics. To mitigate the threats, Huhtamaki is investing in new innovative and sustainable solutions. Huhtamaki is also
focused on driving an evidence-based discussion to deliver data on the value of packaging in terms of hygiene, food safety,
food availability and food waste prevention. Furthermore, Huhtamaki actively tracks early stages of regulatory initiatives
and potential regulatory changes to reflect these changes in the development and commercialization of its products and
solutions. Lack of consistent enforcement of new regulations, possible deregulation and major delays in customers’
sustainability commitments increase uncertainty and risks related to investments in new innovations. Wrong timing of
investments may compromise investment payback time.
Adequate investments in research and development (R&D) are needed to meet the future customer and consumer needs.
Protection of intellectual property is an essential part of R&D. Huhtamaki is also actively screening for strategic
partnerships and merger and acquisition (M&A) opportunities to secure a competitive advantage on new technology
innovations.
There are risks and opportunities related to the ability to manage prices so that price changes are implemented in a timely
manner and with correct cost and market intelligence data. This includes the ability to pass price increases of raw materials,
energy and transportation to the price of the products. Risk management actions include ongoing monitoring of raw
material and energy costs, securing cost competitiveness and focus on contract management with energy and material
escalation clauses included in customer contracts when possible.
Most significant operational risks
Directors’ Report and Financial Statements 2025 | 14
To mitigate the risk of its’ technology and machinery becoming obsolete, inefficient or unfit for serving customer demand,
the Group continuously monitors and anticipates long-term needs and invests in new technology.
Risks related to information security, IT infrastructure and applications
are operational risks
potentially impacting the
business continuity and operational effectiveness. Risks related to inefficient business processes may weaken
competitiveness. Huhtamaki is continuously developing its IT environment including ERP systems and processes, to
enhance productivity and mitigate cyber and other business interruption risks.
In terms of human resources, the key risks and opportunities are identified to arise from availability and cost of labor and
talent. The risk mitigation actions include consistent development of employee experience including employee promise,
hiring practices, onboarding, talent and leadership development and succession planning.
Major fires or disruption in supply chain may cause business interruptions. In addition, Climate change affects the
frequency of natural hazards, such as floods and storms. natural hazards, The company implements a continuous
improvement program in property risk management, designed to reduce the impact and likelihood of hazards, such as fire,
explosion, flood or storm. Huhtamaki also develops its disaster recovery and business continuity plans and allocates
manufacturing capacity to several locations to minimize the impact of a potential business interruption.
Risk related to non-compliance with laws and sanctions include risk of penalties or claims for compensation, or indictment
due to a failure to comply with applicable legislation such as anti-bribery, competition, product, environmental or other
legislation or applicable sanctions. Key risk management actions include policies and processes to identify and mitigate the
non-compliances, and training on various compliance topics.
None of the key risks identified in connection with the 2025 risk assessment is considered of a magnitude that could not
be managed or would endanger the implementation of Huhtamaki’s 2030 Strategy. When considered necessary,
appropriate
risk
treatment
actions
may
also
involve
risk
transfer
by
means
of
insurance.
The
Group
maintains
several
global insurance programs. The need for insurance, including the adequacy of its scope and limits, is
continuously evaluated by the Global Risk Management function..
Directors’ Report and Financial Statements 2025 | 15
Information for shareholders
Share capital, shareholders and trading of shares
Share capital and share data
2025
2024
2023
Registered share capital
1
, EUR million
366
366
366
Total number of shares
1
107,760,385
107,760,385
107,760,385
Shares owned by the Company
1
2,792,075
2,999,685
3,222,204
% of total number of shares
2.6%
2.8%
3.0%
Number of outstanding shares
1, 2
104,968,310
104,760,700
104,538,181
Average number of outstanding shares
2, 3
104,923,944
104,712,538
104,497,300
Number of shares traded
4
, million
44.9
35.0
43.4
Closing price on final day of trading, EUR
29.74
34.18
36.73
Volume-weighted average price, EUR
31.45
36.41
32.64
High, EUR
38.68
40.16
37.20
Low, EUR
27.80
32.88
28.45
Market capitalization
1, 2
, EUR million
3,122
3,581
3,840
Earnings per share, EUR
1.83
2.14
1.97
Earnings per share, diluted, EUR
1.83
2.13
1.97
Dividend per share, EUR
1.14
5
1.10
1.05
Dividend to earnings
62%
5
51%
53%
Effective dividend yield
3.8
5
3.2
2.9
Price to earnings ratio
1
16.3
16.0
18.6
Equity per share
1
, EUR
17.60
19.45
17.59
1
At the end of period.
2
Excluding shares owned by the Company.
3
Average number of outstanding shares used in EPS calculations.
4
Number of shares traded on Nasdaq Helsinki.
5
2025: Board proposal
Shareholder structure as at December 31, 2025
The number of registered shareholders at the end of December 2025 was 69,638 (51,783). Foreign ownership including
nominee registered shares accounted for 39% (43%).
Trading of shares
During the reporting period, the Company’s shares were quoted on Nasdaq Helsinki Ltd on the Nordic Large Cap list under
the Industrials sector. It was a component of the Nasdaq Helsinki 25 Index.
At the end of December 2025, the Company’s market capitalization was EUR 3,121.8 million (EUR 3,580.7 million). With
a closing price of EUR 29.74 (EUR 34.18) at the end of the reporting period, the share price decreased by 13% from the
Directors’ Report and Financial Statements 2025 | 16
beginning of the year. During the reporting period the volume weighted average price for the Company’s shares was EUR
31.45 (EUR 36.41). The highest price paid was EUR 38.68 (EUR 40.16) and the lowest was EUR 27.80 (EUR 32.88).
During the reporting period, the cumulative value of the Company’s share turnover on Nasdaq Helsinki Ltd was EUR
1,412.7 million (EUR 1,267.6 million). The trading volume of approximately 44.9 million (35.0 million) shares equaled an
average daily turnover of 179,718 (138,697) shares. The cumulative value of the Company’s share turnover including
alternative trading venues, such as BATS Chi-X and Turquoise, was EUR 4,340.9 million (EUR 4,117.6 million). During the
reporting period, 67% (69%) of all trading
outside Nasdaq Helsinki Ltd. (source: Refinitiv Eikon).
Resolutions of the Annual General Meeting 2025
Huhtamäki Oyj’s Annual General Meeting of Shareholders was held in Helsinki on April 24, 2025. The meeting adopted the
Annual Accounts including the Consolidated Annual Accounts for 2024, discharged the members of the Company’s Board
of Directors and the CEO from liability, and approved all proposals made to the Annual General Meeting by the Board of
Directors and the Shareholders’ Nomination Board. The Annual General Meeting also approved the Remuneration Report
for the Company’s Governing Bodies presented to it.
The Annual General Meeting resolved that an aggregate dividend of EUR 1.10 per share be paid based on the balance sheet
adopted for the financial period ended on December 31, 2024. The dividend was paid in two instalments. The first dividend
instalment, EUR 0.55 per share, was paid to shareholders registered in the Company’s register of shareholders maintained
by Euroclear Finland Ltd on the record date for the first dividend instalment April 28, 2025. The payment date for the first
dividend instalment was May 6, 2025. The second dividend instalment, EUR 0.55 per share, was paid to shareholders
registered in the Company’s register of shareholders maintained by Euroclear Finland Ltd on the record date for the
second dividend instalment October 1, 2025. The payment date for the second dividend instalment was October 8, 2025.
The number of members of the Board of Directors was confirmed to as nine (9). Ms. Mercedes Alonso, Mr. Doug Baillie,
Mr. Robert K. Beckler, Ms. Anja Korhonen, Ms. Pauline Lindwall, Ms. Kerttu Tuomas and Mr. Pekka Vauramo were re-
elected and, as new members, Ms. Essimari Kairisto and Mr. Johann Christoph Michalski were elected as members of the
Board of Directors for a term ending at the end of the next Annual General Meeting.
The Annual General Meeting re-elected Mr. Pekka Vauramo as the Chair of the Board of Directors and Ms. Kerttu Tuomas
as the Vice-Chair of the Board of Directors.
In a meeting that took place after the Annual General Meeting, the Board of Directors resolved upon members of its
Committees. Ms. Anja Korhonen was elected as the Chair and Ms. Mercedes Alonso, Ms. Essimari Kairisto and Mr. Johann
Christoph Michalski as the members of the Audit Committee. Mr. Doug Baillie was elected as the Chair and Ms. Pauline
Lindwall, Ms. Kerttu Tuomas and Mr. Pekka Vauramo as the members of the Human Resources Committee. Mr. Robert K.
Beckler was elected as the Chair and Mr. Johann Christoph Michalski and Mr. Pekka Vauramo as the members of the
Investment Committee.
The Annual General Meeting resolved that the annual remuneration to the members of the Board of Directors will be paid
as follows: to the Chair of the Board EUR 180,000, to the Vice-Chair EUR 84,000 and to the other members EUR 69,000
each. In addition, the Annual General Meeting resolved that the annual remuneration to the Chairs and members of the
Board Committees will be paid as follows: to the Chair of the Audit Committee EUR 17,500 and to the other members of
the Audit Committee EUR 7,000, to the Chair of the Human Resources Committee EUR 10,500 and to the other members
of the Human Resources Committee EUR 4,200 as well as to the Chair of the Investment Committee EUR 10,500 and to
the other members of the Investment Committee EUR 4,200. In addition, the Annual General Meeting resolved that EUR
1,500 will be paid for each Board and Committee meeting attended. Traveling expenses of the Board members will be
compensated in accordance with the Company policy.
KPMG Oy Ab, a firm of authorized public accountants, was re-elected as Auditor of the Company for the financial year
January 1 – December 31, 2025. Mr. Henrik Holmbom, APA, will continue as the Auditor with principal responsibility.
The Auditor’s remuneration will be paid against an invoice approved by the Audit Committee of the Board of Directors.
KPMG Oy Ab, an authorized sustainability audit firm, was elected as Sustainability Reporting Assurer of the Company for
the financial year January 1 – December 31, 2025. Mr. Henrik Holmbom, Authorized Sustainability Auditor (ASA), will act
as the key sustainability partner.
Directors’ Report and Financial Statements 2025 | 17
The Sustainability Reporting Assurer’s remuneration will be paid against an invoice approved by the Audit Committee of
the Board of Directors.
The Annual General Meeting authorized the Board of Directors to resolve on the repurchase of an aggregate maximum of
10,776,038 of the Company’s own shares. Own shares may be repurchased at a price formed in public trading on the date
of the repurchase or otherwise at a price formed on the market. The authorization also covers directed repurchases of the
Company’s own shares. The authorization remains in force until the end of the next Annual General Meeting, however, no
longer than until June 30, 2026.
The Annual General Meeting authorized the Board of Directors to resolve on the issuance of shares and the issuance of
options and other special rights entitling to shares referred to in chapter 10 section 1 of the Companies Act. The aggregate
number of new shares to be issued may not exceed 10,000,000 shares which corresponds to approximately 9.3 percent of
the current shares of the Company, and the aggregate number of own treasury shares to be transferred may not exceed
4,000,000 shares which corresponds to approximately 3.7 percent of the current shares of the Company. The
authorization also covers directed issuances of shares. The authorization remains in force until the end of the next Annual
General Meeting, however, no longer than until June 30, 2026.
Dividend proposal
On December 31, 2025, Huhtamäki Oyj’s distributable funds were EUR 1,522.5 million (EUR 1496.0 million). The Board
of Directors will propose to the Annual General Meeting that a dividend of EUR 1.14 (EUR 1.10) per share be paid.
Annual General Meeting 2026
The Annual General Meeting of Shareholders (AGM) will be held on Wednesday April 29, 2026 at 11:00 (EEST) at Scandic
Marina Congress Center, Katajanokanlaituri 6, Helsinki, Finland .
Corporate Governance Statement and Remuneration Report
The Corporate Governance Statement and Remuneration Report have been issued separately and are presented in a
section of this Huhtamaki Annual Report 2025 publication. The statements are also available on the Group’s website
www.huhtamaki.com/investors.
Operating model
Directors’ Report and Financial Statements 2025 | 18
Directors’ Report and Financial Statements 2025 | 19
Sustainability statement
Huhtamaki’s ambition is to become the first choice in sustainable packaging solutions. It is a key differentiator for
Huhtamaki and is at the core of its 2030 Strategy. The Group’s sustainability approach is comprehensive, covering three
pillars related to the environmental, social, and governance responsibility.
General information
General basis for preparation of the Sustainability Statement
This sustainability statement (the Sustainability Statement) has been prepared in accordance with the sustainability
reporting standards (European Sustainability Reporting Standards, ESRS) referred to in Chapter 7 of the Finnish
Accounting Act and with Article 8 of Taxonomy Regulation (EU) 2020/852. The statement contains information on
Huhtamaki’s sustainability performance for the period January 1 – December 31, 2025.
The Huhtamaki Sustainability Statement is published annually in the Directors’ Report in both Finnish and English.
The reporting period for the Sustainability Statement is consistent with that of its Financial Statements. The Sustainability
Statement has been prepared on a consolidated basis. The scope of consolidation is the same as for the Financial
Statements, covering all Group subsidiaries. However, for the purpose of environmental reporting only, Huhtamaki’s
manufacturing locations are included in the sustainability metrics reported. The environmental impact of non-
manufacturing locations is not material, as these include, by way of example, sales offices and warehouses. For health and
safety reporting, the figures encompass all operational sites and relevant office locations. At the end of 2025, the Group
manufactured products in 71 sites, with 19 in the Foodservice Packaging segment, 11 in the Fiber Packaging segment, 22
in the Flexible Packaging segment, and 19 in the North America segment. No significant changes in the definition of what
constitutes reporting for Huhtamaki and its upstream and downstream value chain has taken place in 2025.
During 2025, the Group acquired one new manufacturing site within the North America segment. The site has been
included in the Group’s sustainability reporting from May 1, 2025 onwards. For the purpose of greenhouse gas (GHG)
emissions and energy-related reporting, the new manufacturing site is included in the reported numbers according to the
requirements of the GHG Protocol.
In line with the Financial Statements and other disclosures in the Sustainability Statement, the consolidation principle used
for the activity data collection, GHG emission calculations, and reporting is financial control. As Huhtamaki does not have
associates, joint ventures, unconsolidated subsidiaries (investment entities), or contractual arrangements that are joint
arrangements not structured through an entity, using financial control yields the same outcome as operational control.
The consolidation principles are discussed in greater detail in the Financial Statements on p. 96.
The Sustainability Statement has been assured (limited assurance) by KPMG Oy Ab, an authorized sustainability audit firm
that was elected as the Company’s Sustainability Reporting Assurer at the Annual General Meeting in 2025.
The Sustainability Statement has been prepared with consideration for the upstream and downstream value chain, in
addition to Huhtamaki’s own operations. The assessment of impacts, risks, and opportunities (IRO) covers the whole value
chain. The different value chain impacts have been considered when defining relevant targets, metrics, and actions. As an
example of value chain considerations, the greenhouse gas target covers sources of emissions from Huhtamaki’s own
operations as well as from the upstream and downstream value chains (scopes 1, 2, and 3). Waste management and waste
reduction in the downstream value chain are identified as key impacts from Huhtamaki operations.
No quantitative details related to the value chain are presented. Value chain considerations and impacts are discussed
more extensively under each topical chapter.
Huhtamaki has decided not to use the option to omit a specific piece of information corresponding to intellectual property,
know-how, or the results of innovation within this Sustainability Statement.
The Group has no impending developments or matters that it would not disclose within this Sustainability Statement.
The reporting principles concerning the reported metrics are described within each topical chapter. The greatest source
of uncertainty and estimations regarding the reported metrics stems from the use of default factors, such as greenhouse
gas emissions. Huhtamaki has made efforts to ensure utilization of the most recent and suitable factors in all sustainability
Directors’ Report and Financial Statements 2025 | 20
metrics. Specific circumstances applying to metrics, including time horizons and the use of estimations, are disclosed under
the applicable topical chapter where each metric is described in more detail.
Changes in preparation of the Sustainability Statement
Huhtamaki updated its double materiality assessment during 2025, leading to an updated scope of material topics and, as
a result, a more focused scope of topics reported in this Sustainability Statement. The double materiality assessment was
conducted through a robust process, including gathering input from an extensive group of internal and external
stakeholders and engaging internal experts and the Group leadership. As a result, a more focused scope of material topics
was defined, where certain topics previously considered material were reassessed and consequently fell below the
materiality threshold.
These re-evaluated topics include the following:
•
E3 Water and marine resources
was no longer considered material due to increased understanding stemming from a
detailed water risk assessment, which indicated a lower risk than previously considered within the timeframe specific
to ESRS. In addition, from the Group perspective, materiality remains low while substantial amounts of water are used
only in the production of fiber packaging within two of Huhtamaki’s business segments.
•
E4 Biodiversity and ecosystems
was re-assessed as non-material, as virgin fiber sourcing, which has a potential impact
on biodiversity, is not used across Huhtamaki’s business, with the exception of Foodservice Packaging and part of the
North America segment’s product offering. The risks related to this topic are diluted given the high number of suppliers
in Huhtamaki’s base, as well as the favoring of certified fiber. As the potential or actual impacts take place at the
plantation level, which is distant in Huhtamaki’s value chain, these impacts are below materiality threshold due to lack
of control over the distributed value chain. Hence, the importance of this topic at the overall group-level is considered
low.
•
S2 Workers in the value chain
was deemed a non-material topic. In Huhtamaki’s Sustainability Statement, the Group
intends to focus on the sustainability matters that are most important, which has led to a decision to redefine the
materiality threshold. Through the robust and extensive process taken to update the double-materiality assessment
during 2025, the increased understanding of material topics lead to S2 ranking below the updated materiality
threshold.
•
S4 Consumers and end-users
was reassessed as non-material due to increased understanding of the risks and impacts
related to this sustainability matter as well as the materiality requirements. In addition, the redefined materiality
threshold contributed to the reassessment of materiality.
In addition to the changes in material topics, there were changes in the individual impacts, risks and opportunities
considered material. The following IROs under ESRS standards E1, S1, and G1 are not deemed material in the updated
double materiality assessment:
•
Climate change adaptation (E1 Climate change)
•
Secure employment, social dialogue, gender equality and equal pay for work of equal value, training and skills
development, diversity, and chemical safety as a separate IRO (S1)
•
Corruption and bribery (G1)
The process for the double materiality assessment update and the results stemming from it are described in more detail
later in this Sustainability Statement, in the paragraph Materiality assessment process on p. 33.
In 2025, Huhtamaki updated the emission factor sources used for greenhouse gas emissions reporting, ensuring that
emission factors remain continuously up to date as new information becomes available. The Group also revised its Scope 3
materiality assessment and calculation methodologies, resulting in an expanded inventory scope. In addition, the
acquisition of a new manufacturing site within the North America segment has been taken into consideration when
calculating the relevant comparative figures for greenhouse gas emissions and energy. The emission- and energy-related
indicators contain details of the newly acquired site for the full years 2024 and 2025 as well as the 2022 base year. The
related comparative numbers for 2024 greenhouse gas emissions and energy are restated and presented in conjunction
with the relevant metrics. Moreover, Huhtamaki updated its climate-related targets including its emission reduction target
base year. The above-mentioned changes have been considered in the base year values.
Governance
Directors’ Report and Financial Statements 2025 | 21
The role of administrative, management and supervisory bodies
This Sustainability Statement provides details about sustainability governance. Further information about the general
duties, composition, diversity, and experience of the administrative, management, and supervisory bodies, as well as the
processes of internal control, internal audit, and risk management, is available in the Corporate Governance Statement.
The Board of Directors and Committees
Huhtamaki’s Board of Directors (the Board) is the governance body with the highest decision-making authority in the
entire Group. The Board may appoint committees in order to focus on certain responsibilities. The Board of Directors has
three committees: the Audit Committee, the Human Resources Committee, and the Investment Committee. The Board
oversees sustainability-related activities in the Group. The Audit Committee monitors the assurance of the statutory
sustainability reporting.
Composition and expertise of the Board
The Shareholders’ Nomination Board prepares a proposal concerning the composition of the Board to be presented to the
General Meeting of Shareholders. When preparing its proposal, the Nomination Board takes into account the
independence requirements under the Finnish Corporate Governance Code adopted by the Securities Market
Association, the results of the annual performance assessment of the Board, the principles on diversity of the Board, and
other applicable rules and regulations. According to the Articles of Association of the Company, the Board shall consist of
a minimum of six and a maximum of nine members.
The principles on diversity of the Board are defined in the Charter of the Shareholders’ Nomination Board. According to
the Charter of the Nomination Board, the Board must have sufficient expertise, competence, and experience related to
Huhtamaki’s line of business. The composition of the Board shall reflect the requirements set by the Company’s operations
and development stage. The Board must specifically have sufficient collective knowledge and competence in:
•
matters pertaining to the Company’s line of business and its business operations
•
management of an internationally operating public limited company of corresponding size
•
group and financial management
•
strategy as well as mergers and acquisitions
•
internal control and risk management
•
corporate governance.
The selection of the members of the Board is based on the candidates’ background and competence to understand
Huhtamaki’s current and future markets, strategy, employees and customers, including a sound understanding of financials
and business dynamics. The Board as a whole must have combined experience in different markets, geographies and
important topics such as digitalization and, notably, sustainability. The most important nomination criteria for the
candidates for the Board are competency, knowledge, personal qualities, and integrity. Both genders must be represented
on the Board. In accordance with the Finnish Companies Act, the Company has an objective according to which at least
40% of the Board members represent the underrepresented sex. These principles on diversity are central to achieving
objectives concerning diversity and ensuring that the Board’s composition corresponds to the needs of Huhtamaki.
The objectives concerning the diversity of the Board have been well achieved. According to the Shareholders’ Nomination
Board, the composition of the Board comprises qualifications defined in the principles on diversity of the Charter of the
Nomination Board, which were valid at the time of the election of the Board members, in a balanced way. At the Annual
General Meeting in 2025, nine members representing seven different nationalities were elected to the Board. On
December 31, 2025, the age structure of the Board members was 59–72 years and five Board members were female (56%)
and four were male (44%). The Board members have international experience in different roles in global companies
operating in different businesses and geographical market areas that are important for the Group. Board members hold or
have held management positions and positions of trust in both listed and unlisted companies. All Board members have a
university-level degree, mainly in technology or finance. All of the Board members are non-executive. Employees or other
workers of the Group are not represented on the Board. The Board considers all Board members to be independent of the
Group and independent of the significant shareholders of the Group.
Directors’ Report and Financial Statements 2025 | 22
The Board has members with extensive work experience and significant positions of trust related to sustainability matters.
Further, the continued expertise and knowledge of the Board in relation to sustainability matters are ensured by regular
information and updates provided to the Board by the executive management. The Board also has regular access to request
updates and inquire about any details from Huhtamaki’s employees with expertise in sustainability matters.
Roles and responsibilities in relation to sustainability matters
In addition to the powers vested in the Board by the Finnish Companies Act and the Articles of Association of the Company,
the essential duties and working principles of the Board are defined in the Company’s Charter of the Board of Directors.
The responsibilities and duties of the Board include, among other things, organizing the Company's management and
directing the Company's business and strategy. The Board approves the targets and guiding corporate policies for
sustainability, and outlines sustainability principles regarding the Group’s strategy. The Board approves the Sustainability
Statement as part of the Directors’ Report. In line with Huhtamaki Enterprise Risk Management Policy, the Board reviews
and guides the risk management activities of the Group, including sustainability impacts, dependencies, risks, and
opportunities. It approves the risk level that Huhtamaki can and is prepared to accept, and the extent to which risks and
impacts have been identified, addressed, and followed up.
The Human Resources Committee of the Board validates Huhtamaki Global Sustainability and Safety Index (GSSI) targets
each year.
The Audit Committee of the Board monitors and assesses the Company’s reporting system and processes, including the
sustainability target progress. The Audit Committee assists the Board by monitoring and assessing the effectiveness and
efficiency of the risk management systems of the Company.
The Global Executive Team (GET) is responsible for supervising that material Group policies and guidelines are maintained
and properly followed, including policies related to the management of impacts, risks, and opportunities through allocating
adequate resources as well as adopting and deploying risk management procedures. In addition, the GET reviews the
Group’s and the segments’ risks and accepts the related risk levels, and the extent to which these risks have been properly
identified, recognized, and addressed by the Group and the segments, for the approval of the Board.
The Interim Senior Vice President (SVP), Sustainability, Corporate Affairs and Legal reports to the President and CEO. The
Interim SVP, Sustainability, Corporate Affairs and Legal leads the Group Sustainability Center of Expertise and chairs the
Group Sustainability Leadership Team. The Sustainability Leadership Team consists of representatives of all four business
segments and the head of the Group Sustainability Center of Expertise. The Interim SVP, Sustainability, Corporate Affairs
and Legal ensures that the Board, the Audit Committee, and the GET are well informed on sustainability-related topics.
The Group Sustainability Center of Expertise consists of experts in sustainability topics and its focus is on global direction,
coordination, and advisory support by partnering with business segments and their sustainability teams in a broad range
of sustainability topics. The Group Sustainability Center of Expertise is also responsible for mandatory sustainability
reporting and analytics work, and works in cooperation with the Group Sustainability Controller. The Group Sustainability
Center of Expertise follows a systematic procedure to inform the GET on sustainability matters. The Board, the Audit
Committee, and the GET receive sustainability reports on a quarterly basis. In addition, a more focused update on the GSSI
is provided to the GET monthly. The Sustainability Center of Expertise is responsible for ensuring that the controls and
procedures used to assess and manage environmental issues are aligned with and integrated into Huhtamaki’s overall
strategy, risk management, innovation, and reporting processes.
The Global Risk Management function organizes, instructs, supports, supervises, and monitors risk management activities
on an ongoing basis. It reports the results of the risk management process to the Audit Committee annually. The processes
and controls related to the management of sustainability impacts, risks, and opportunities are part of the broader
Enterprise Risk Management (ERM) control framework.
Leadership teams at the global, segment and local levels are responsible for ensuring that risk management is appropriately
implemented in their field of responsibility.
Role and expertise of the Board in relation to business conduct matters
Directors’ Report and Financial Statements 2025 | 23
At Huhtamaki, the Group’s values – Care, Dare, Deliver – form the foundation for the corporate culture and way of working.
These values are defined and approved by the Board of Directors. The Board has also approved the Huhtamaki Code of
Conduct, a fundamental component of Huhtamaki’s business conduct.
In addition, the Board is responsible for ensuring that policies outlining the principles of corporate governance, as well as
other matters required by applicable legislation or regulations, or which the Board deems necessary, exist and are carefully
followed. As part of enterprise risk management, the Board reviews the Group’s risks related to business conduct and the
extent to which these risks have been properly identified, recognized, and addressed. An ethics and compliance review is
presented to the Audit Committee of the Board of Directors at least twice a year. The Chair of the Audit Committee
informs the Board about the committee’s discussions, findings, and recommendations.
When preparing its proposal concerning the composition of the Board, the Shareholders’ Nomination Board shall take into
account the set principles on diversity. The Board’s diversity, e.g. in terms of expertise, experience in different markets and
geographies, gender, and nationality enables it to assess and address business conduct matters from multiple perspectives.
Board members have gained extensive experience in business conduct matters through their backgrounds in executive
roles in operations, finance, and human resources, predominantly in globally operating, publicly listed entities
Information provided to and sustainability matters addressed by Huhtamaki’s administrative, management and
supervisory bodies
Regular updates on the progress of Huhtamaki’s sustainability ambitions are given to the Board throughout the year.
The Board is provided with a sustainability dashboard as part of quarterly result updates, which tracks Huhtamaki’s
progress toward its sustainability ambition for 2030. The current sustainability dashboard includes the following topics:
•
use of renewable, recycled, or certified materials
•
use of renewable electricity
•
greenhouse gas emissions
•
waste treatment
•
health & safety
•
solvent consumption
The topics included in the dashboard have been defined based on previous materiality assessments and the sustainability
topics identified as material. The dashboard will be developed to align with the renewed sustainability ambition developed
over the course of 2025.
The Board receives regular updates on business development, innovation projects, and risks. A summary report on risks
and opportunities is submitted annually to the Audit Committee and the Board for review.
The Human Resources Committee of the Board is responsible for overseeing specific organizational and human resources
matters that are further deliberated by the Board. The Committee receives quarterly updates on safety performance and
attrition, as well as an annual update on the employee engagement survey. The Committee also reviews progress made on
the people strategy pillars and annual people processes such as performance, remuneration, and talent.
The Board annually approves a rolling three-year strategic plan, which is based on the existing long-term strategy. The
annual operating plan (AOP) is reviewed and approved by the Board based on the three-year strategic plan. Strategic
investments are approved on a case-by-case basis. The Board ensures execution of the strategy through regular review
and operational visits to the business units.
Integration of sustainability-related performance in incentive schemes
There are no incentive schemes in place for the Board.
The incentive model for the President and CEO contains as one element the Huhtamaki Global Sustainability and Safety
Index (GSSI). The index tracks the Group’s progress toward its 2030 sustainability ambition, including health and safety
performance. For the period of 2025, the GSSI consisted of the following specific metrics and defined targets:
•
Renewable or recycled material use
Directors’ Report and Financial Statements 2025 | 24
•
Certified or recycled fiber use
•
Renewable electricity consumption
•
Non-hazardous waste recycled
•
Waste to landfill
•
Water intensity
•
Solvent consumption
•
Total recordable injury frequency rate
The indicators and related metrics included in the incentive model will be updated for 2026 to align with the renewed
sustainability ambition developed over the course of 2025 and the double materiality assessment concluded during 2025.
Climate targets and greenhouse gas (GHG) emission reductions were not directly considered in the GSSI for 2025 but
were partially captured through the target of renewable electricity consumption.
During 2025 Huhtamaki developed a new ESG criterion for the incentive model that will be applicable to the President and
CEO, Huhtamaki leadership, as well as the broader personnel. There will be a specific target for GHG emissions, applicable
from the year 2026 onwards.
The sustainability-related performance formed 10% of the overall variable remuneration criteria for the President and
CEO during 2025. The GSSI model and the related targets and yearly goals were deliberated by the Human Resources
Committee and approved by the Board.
Statement on due diligence
Table 1: Mapping of the information provided in the Sustainability Statement about the due diligence process
Risk management and internal controls over sustainability reporting
The foundation of the sustainability reporting control environment lies with the Huhtamaki values – Care, Dare, Deliver.
They are formalized in the Huhtamaki Code of Conduct, policies, instructions, and guidelines.
The overall risk management process of the Group follows the principles of the Enterprise Risk Management (ERM)
framework of the Treadway Commission (COSO), and ISO 31000 Risk Management Standard. Huhtamaki has further
tailored its ERM processes to meet its own needs. In terms of risk management and sustainability reporting, internal
Core elements of Due Diligence
Paragraph / sections in the Sustainability
Statement
a) Embedding due diligence in governance, strategy
and business model
General information
Environmental, Social, Governance
information
b) Engaging with affected stakeholders in all key steps
of the due diligence
General information
Environmental, Social information
c) Identifying and assessing adverse impacts on people
and the environment
General information
Environmental, Social information
d) Taking action to address adverse impacts on people
and the environment
Environmental, Social information
e) Tracking the effectiveness of these efforts
Environmental, Social information
Directors’ Report and Financial Statements 2025 | 25
reporting is based on properly documented data and risk analysis with an adequate audit trail. The Sustainability Statement
is also subject to external assurance.
The Company has defined operating principles for internal control. The Board and the President and CEO are responsible
for adequate internal control. The Audit Committee monitors and assesses the effectiveness and efficiency of the
Company’s internal control and monitors the assurance of the statutory sustainability reporting.
Internal control for sustainability reporting includes a process aimed at ascertaining the reliability of the Sustainability
Statement. The internal control framework for the Huhtamaki sustainability reporting is based on the identification,
analysis, and prioritization of risks. Risk prioritization takes into consideration the potential impact on the accuracy,
completeness, and reliability of sustainability reporting. The responsibility for arranging the internal controls belongs to
the executive management of the Group and is being carried out by the whole organization.
Huhtamaki’s Group Sustainability Center of Expertise is responsible for preparation of the sustainability reporting. The
risks identified for sustainability reporting include inaccurate, incomplete, or misleading reporting. To mitigate the risks a
control catalogue has been defined, outlining how sustainability reporting information is collected, processed, and reported
so that the sustainability information presented is accurate, relevant, and complete.
The Group’s non-financial reporting handbook includes definitions, procedures, frequency, and other relevant instructions
applicable throughout the sustainability reporting process. The interpretation and application of sustainability reporting
standards are centralized in the Group Sustainability Center of Expertise, which maintains the non-financial reporting
handbook and communicates these throughout the Group. The Group Sustainability Center of Expertise also supervises
compliance with the non-financial reporting handbook. The reporting standards are uniformly applied in the whole Group
and unified Group reporting systems are used.
The Group sustainability reporting process, including roles and responsibilities for both unit-level reporting and Group
Sustainability Center of Expertise, has been defined and implemented. The process promotes governance of the
sustainability reporting by including segregation of duties and required approvals. In addition, it promotes accuracy and
completeness of data by providing standardization and consistency in sustainability reporting.
The Group Sustainability Center of Expertise and the network of business segment and business unit sustainability
specialists perform the sustainability reporting and manage and control the sustainability reporting process in accordance
with established internal control guidelines. Regular control testing is conducted as part of the governance framework. The
effectiveness of internal controls is monitored and reported in line with internal control principles, and findings from
control activities are used to continuously improve the efficiency and accuracy of the sustainability reporting process.
Strategy, business model and value chain
Huhtamaki strategy and sustainability
Huhtamaki’s strategic ambition is to be the first choice in sustainable packaging solutions. The Group’s strategic value
drivers, as renewed during 2025, are accelerated profitable growth, disciplined capital allocation, and accountability and
speed of execution. Sustainability remains at the core of Huhtamaki’s mission, as well as being a key factor for the license
to operate.
At Huhtamaki, sustainability is an integral part of the Group’s strategy and everyday work. As a global solutions provider in
food and everyday necessities packaging, Huhtamaki is fully committed to sustainability as one of the strongest
transformative opportunities for stakeholders and customers. The Group’s strategy is based on the belief that Huhtamaki
can only be successful in the long term by creating value both for shareholders and for society.
Huhtamaki’s significant product groups consist of paperboard conversion packaging for food and drink, molded fiber
packaging such as egg cartons, fruit packaging, cup carriers and bottle dividers, flexible packaging including mono-material
blueloop™ solutions, labels, tube laminates, and cylinders, and plastic-forming packaging. There have been no material
changes in the product portfolio during 2025. Huhtamaki consistently makes efforts to increase the sustainability
performance of its products, with a focus on increased possibilities to recycle, compost, and reuse Huhtamaki packaging
products.
Directors’ Report and Financial Statements 2025 | 26
Huhtamaki’s customer base is varied, and contains among others food, beverage, and petfood companies, quick service and
fast casual restaurants, foodservice operators, fresh produce packers and retailers, as well as customers in the home and
personal care, industrial, FMCG, and healthcare segments.
Huhtamaki operates globally, with operations in 35 countries and 71 sites in 106 locations around the world.
The Group employs 17,390 employees, which are employed in Huhtamaki geographical areas as follows:
Area
Number of employees
Europe
6,267
Asia-Pacific
4,671
Americas
4,743
Middle East and Africa
1,709
Huhtamaki is committed to making packaging more circular with a lower carbon footprint and embedding sustainability in
all products. While the overarching vision of being the first choice in sustainable packaging solutions remains the same,
Huhtamaki’s sustainability ambition was updated during 2025 to further increase the focus of the sustainability targets
and improve alignment with Huhtamaki’s operating model. The updated sustainability ambition highlights the
accountability of business segments in driving sustainability matters in a meaningful way, while focusing the group-level
approach to matters shared across the Group. Sustainability targets are divided into three categories:
1.
Core targets: Group-wide priorities with a shared ambition across business segments and group-wide steering
2.
Common targets: areas where Huhtamaki’s business segments have differing approaches and ambition levels
3.
Distinct targets: areas specific to a business segment
Huhtamaki’s core sustainability ambition includes the following measurable, outcome-oriented, and time-bound targets:
•
Increasing the share of products ready to recycle, compost, or reuse
•
Reducing Scope 1 & 2 greenhouse gas (GHG) emissions by 50.44% by 2030 (compared to a 2022 baseline) in line with
the 1.5°C pathway set out in the Paris Agreement and reducing Scope 3 GHG emissions by 25% by 2030 (compared
to a 2022 baseline).
•
Maximizing renewable electricity use
•
Zero serious health and safety incidents by 2030
The common ambition, relevant to applicable business segments, consists of the following targets:
•
Reduction in water consumption intensity in technologies where water is used in production
•
Reduction of the share of waste to landfill and maximizing percentage of non-hazardous waste recycled
•
Share of certified and recycled fiber
•
Share of virgin fiber traced to origin, relevant to business segments that utilize virgin fiber as a raw material
In addition, Huhtamaki is committed to conducting business responsibly and building a framework to systematically
identify and manage impacts and risks in the value chain. Huhtamaki has also committed to setting long-term emissions
reduction targets with the Science Based Targets initiative (SBTi), in line with reaching net-zero greenhouse gas emissions
by 2050.
Due to Huhtamaki’s consistent effort over a long period of time, the Group’s current product range is well aligned with its
sustainability ambition of being the first choice in sustainable packaging.All of the Fiber Packaging business segment’s
products are produced using recycled fiber, and they are all designed to be recycled, supporting the circular use of raw
materials. In Flexible Packaging Huhtamaki provides solutions with improved recyclability through monomaterial solutions.
Huhtamaki Foodservice Packaging products offer paperboard-based, packaging solutions promoting circularity. Finally,
the North America business segment offers solutions where product design and raw material sourcing promote circularity
and the efficient use of resources.
Directors’ Report and Financial Statements 2025 | 27
To further increase the ambition of the sustainability targets, the Group has driven several impactful initiatives during
2025 across the four business segments. At the core is close and continued collaboration with customers to accelerate the
transition to sustainable packaging solutions.
Innovative monomaterial packaging solutions, as well as new coating innovations and lightweight structures, have been
designed and introduced to improve readiness to recycle. The use of renewable materials continues to drive innovation
efforts, enabled by improved raw material sourcing.
Renewable electricity and energy efficiency continue to be key actions in operationalizing Huhtamaki’s sustainability
targets. Major renewable electricity initiatives that have been initiated during 2025, are expected to bring sustainability
benefits in the coming years.
Further, efforts have been made to improve waste management practices both in own operations as well as considering
product end-of-life, to promote the efficient use of resources.
Business model and value chain
Huhtamaki’s operations are dependent on natural resources as raw material to produce its products. The Group works
with a large number of suppliers globally to ensure availability and high quality of raw materials. Within the upstream value
chain, sustainability matters are an important consideration, notably in terms of sourcing certified materials and ensuring
commitment to the Code of Conduct for Huhtamaki Suppliers.
Within the downstream value chain, the majority of Huhtamaki’s products serve the needs of food, beverage, and petfood
companies, quick service and fast casual restaurants, foodservice operators, fresh produce packers and retailers, as well as
customers in the home and personal care, industrial, FMCG, and healthcare segments. A small number of products are sold
directly to consumer users.
Figure 1: Huhtamaki value chain
Interests and views of stakeholders in the strategy and business model
Huhtamaki is committed to collaborating with stakeholders from across the value chain, as this is a key component in
achieving the Group’s sustainability ambitions. The dialogue with stakeholders supports the alignment of strategies and
actions to the expectations of various stakeholder groups. It also gives valuable information about the possible risks and
opportunities related to Huhtamaki’s business, as well as market trends, customer needs, and impacts of regulatory
developments. In addition, this engagement improves the way Huhtamaki collaborates with its stakeholders in effectively
addressing opportunities and concerns and supports building lasting relationships. Sustainability is at the core of
Directors’ Report and Financial Statements 2025 | 28
Huhtamaki’s 2030 Strategy, and hence the views of stakeholders are a key input to the strategic planning process. The
Huhtamaki strategy and sustainability ambitions cover many of the issues that stakeholders are most concerned about,
and their feedback is utilized to inform business decisions.
Stakeholder engagement should create value for all parties and, therefore, Huhtamaki does not take a ‘one size fits all’
approach. As a global company, Huhtamaki adapts its engagement depending on the needs of the stakeholders, which may
include, for example, specific language and cultural requirements. Also, different groups of stakeholders may have differing
needs: customers and investors need information in a different format than the Group’s employees. Communities around
the Group’s manufacturing units require contact with local management, whereas global stakeholders require contact with
segment teams or global functions. The Group’s engagement with stakeholders is guided by Huhtamaki’s values and the
Code of Conduct and aligns with its commitment to human rights.
Huhtamaki’s own workforce is a key group of affected stakeholders and provides valuable insights into potential impacts,
risks, and opportunities related to operations. The findings from the stakeholder engagements with its own workforce as
well as Huhtamaki’s commitment to improve its human rights due diligence with the expectations of the United Nations
Guiding principles on Business and Human Rights (UNGP), are considered when strategic people priorities and related
targets and action plans are set. The progress towards the Group’s strategic targets related to its own workforce is
monitored regularly, and targets are reviewed annually as part of the strategic planning process. The strategy is
communicated to Huhtamaki’s workforce regularly, to ensure common understanding of strategic priorities and to
emphasize employees’ opportunity to have an impact on the Group’s long-term targets and performance.
The stakeholder engagement results and the stakeholder interests feed into Huhtamaki’s strategy and business planning
processes, and have been reported to the Board as part of these discussions.
While Huhtamaki sees customers, employees, suppliers, and policy makers as the key stakeholders, the Group engages
with a number of important stakeholder groups. The interests of the different stakeholders and Huhtamaki’s approach for
dialogue are summarized below.
Directors’ Report and Financial Statements 2025 | 29
Key stakeholders
Main interests and views
Form of dialogue
Customers
•
Product safety and functionality
•
Low-carbon, sustainable and
circular packaging solutions,
substitution of plastics
•
Collaboration in the innovation
for sustainable products
•
Ambitious sustainability targets
and action
•
Voice of Customer satisfaction
survey
•
Stakeholder platforms such as the
Think Circle
•
Joint projects e.g. related to
product development
•
Customer sustainability
questionnaires and requests for
information
•
Customer interactions
Employees and
contingent
workers
•
Occupational health and safety:
wellbeing and labor conditions.
•
Engagement and enablement:
training and career growth,
diversity, equity and inclusion.
•
Ambitious sustainability targets
and action
•
Interaction with supervisor
•
Continuous dialogue through
townhall meetings, roundtable and
focus group discussions etc.
•
Annual performance reviews and
development discussions
•
Connect employee engagement
survey
•
Speak Up whistleblowing channel
•
European Works Council (EWC)
•
Health and Safety Committees
Shareholders and
investors
•
Competitive next generation
sustainable packaging solutions
•
Profitable growth, delivery on
strategy and sustainability
ambitions
•
Annual General Meeting and
Capital Markets Day
•
Investor meetings, discussions and
requests for information
•
Sustainability and transparency
questionnaires, such as Carbon
Disclosure Project (CDP)
•
Investor presentations, reports and
other material
Directors’ Report and Financial Statements 2025 | 30
Material impacts, risks and opportunities and their interaction with strategy and business model
Huhtamaki continuously follows the most recent developments and trends in the field of sustainability, including changes
in legislation and views from stakeholders. The material impacts, risks, and opportunities identified and assessed over the
course of the double materiality assessment update are presented below. In addition, a description of how the impacts
relate to the Huhtamaki business model is given. Further details of the impacts, risks, and opportunities are presented in
each topical chapter.
Consumers
•
Sustainable and
affordable packaging
•
Product safety and
functionality
•
Substitution and
reduction of plastic
•
Labels/end-of-life
guidance/instructions on packaging
products
•
Joint projects, e.g. related to product
development
•
Speak Up whistleblowing channel
Suppliers
•
Fair terms and
conditions
•
Long-term
collaboration
•
Collaboration on
sustainable
innovations
•
ESG due diligence tool
•
Supplier screenings, (self-
assessments, questionnaires and
third-party audits
•
Speak Up whistleblowing channel
•
Dialogue with sourcing and quality
managers, including negotiations and
ongoing commercial discussion
Policy makers, public
authorities
•
Science-based
climate and
environmental
regulation
•
Food safety and
hygiene
•
1-to-1 meetings, roundtable
discussions, seminars
•
Technical working groups
•
Consultations and requests for
information
Industry associations,
trade unions
•
Predictable business
environment
•
Science-based
climate and
environmental
regulation
•
Working groups and meetings
•
Consultations and requests for
information
Non-Governmental
Organizations
•
Science-based
climate and
environmental
regulation
•
Food safety and
hygiene
•
Community
engagement
•
Just transition to a
circular economy
•
Joint projects and cooperation, e.g.
WasteAid
•
1-to-1 meetings and seminars
Communities near
Huhtamaki
manufacturing units
•
Job opportunities
•
Health and safety in
the communities
•
Direct contact with local managers
•
Community involvement projects
•
Partnerships with educational
institutions
•
Speak Up whistleblowing channel
Directors’ Report and Financial Statements 2025 | 31
Topic
Material impact, risk or opportunity
Environmental
Climate change mitigation (E1)
Huhtamaki's own operations emit GHG emissions (Scope 1 and 2) into the
atmosphere, creating a negative impact.
As an industrial company, a certain amount of GHG emissions is inevitably
linked to Huhtamaki’s business model, impacting the environment and
people in a significant manner in the short-, medium-, and long-term
timeframe.
Huhtamaki's activities in the value chain (sourcing and end-of-life) emit GHG
emissions (Scope 3) into the atmosphere, creating a negative impact.
Huhtamaki's GHG emissions impact finances via increased carbon pricing,
such as the EU and UK Emissions Trading Systems (ETS), and bonds linked to
sustainability indicators. Failure to meet Scope 1 and 2 targets can have a
negative financial impact.
Climate change: Energy (E1)
Huhtamaki operates in an industry that uses different forms of energy
(electricity, fuels) in the production of raw materials (paperboard, plastics)
and in its own processing operations.
Resource use and circular
economy: Resource inflows
including resource use (E5)
Huhtamaki impacts natural resources through the use of raw materials (e.g.
paperboard and paper, plastic, chemicals) for manufacturing of packaging.
The Group’s business model is based on raw material processing, impacting
the environment in the short term.
Resource use and circular
economy: Resource outflows
related to products and services
(E5)
Possible changes in packaging and waste management regulations may
expose Huhtamaki to negative financial impact. For example, extended
producer responsibility may lead to an increase in costs.
Resource use and circular
economy: Waste (E5)
Huhtamaki’s operations in the packaging sector can lead to impacts on waste
generation in value chain.
Huhtamaki’s business model is based on the production of disposable
packaging products, with short-term impacts on environment.
Resource use and circular
economy: Waste reduction (E5)
Transitioning to circular business models in the packaging industry can
reduce waste by prioritizing the circularity of materials, and conserve
resources.
Circular products are at the core of Huhtamaki business model and strategy
where short-term impacts on waste reduction emerge.
Resource use and circular
economy: Food waste (E5)
Huhtamaki’s packaging solutions help reduce food waste by extending the
shelf life of food products.
These positive impacts from the Group’s operations in reducing food waste
and increased circularity emerge in the short-term.
Resource use and circular
economy: Circular business
models (E5)
Circular business models in the packaging industry can lead to financial
benefits for Huhtamaki by meeting demand and need for sustainable
packaging solutions, reducing reliance on virgin materials, and harnessing
Directors’ Report and Financial Statements 2025 | 32
efficiencies in resource utilization. New product concepts could be created,
and innovation can contribute to developing more sustainable products,
creating business opportunities for Huhtamaki. This can help in establishing
Huhtamaki as a leader in sustainable packaging.
Social
Own workforce: Health and safety
(S1)
Neglecting workplace safety can threaten health, increase accidents, and lead
to absences or turnover. Own workforce in production may be exposed to
various chemicals in specific parts of the processes. Chemical safety is also
identified as a material topic for Huhtamaki's sector.
As a company with manufacturing operations this impact is inherent to the
operating model, with impacts on the short term.
Financial risk deriving from fines and reputational damage if there are health
and safety incidents. There is a risk of employees facing legal consequences
and operations being halted. The potential negative financial impact is
decreased sales and increased costs.
Own workforce: Availability of
skilled workforce (S1)
The shortage of skilled workforce and talent may pose challenges in
resourcing the production lines, potentially leading to delays in
manufacturing processes. While this financial risk may initially manifest on
local or regional levels, it could escalate into a global issue, thereby
increasing associated financial risks.
Governance
Ethical business conduct and
corporate culture (G1)
Positive impact through Huhtamaki’s commitment to upholding its corporate
values and culture, and promoting ethical business conduct, which builds
trust and engagement in and outside Huhtamaki.
Protection of whistle-blowers (G1)
Huhtamaki has established whistleblower protection policies to ensure
employees can report unlawful behavior or unethical practices without fear
of retaliation.
The list of impacts, risks, and opportunities (IROs) includes both potential and actual as well as positive and negative
impacts across the entire value chain. The image below depicts the identi
fi
ed material IROs mapped to Huhtamaki’s value
chain.
Raw material production
(Tier 2 to n)
Production of materials
(Tier 1)
Upstream: Sourcing of raw materials
Downstream: Use phase and end-of-life
Value chain
End-of-life
(Tier 3)
Manufacturing
Use phase
(Tier 1-2)
Own operations
Logistics and distribution, sales, company infrastructure, premises, IT systems, human resources, R&D and procurement
Climate change mitigation: GHG emissions in own operations and value chain
Climate change mitigation: carbon pricing and financing
Climate change mitigation: energy use
Resource inflows: resource use
Resource outflows: waste regulation
Waste: waste generation in value chain
Waste: reduction of food waste
Waste: reduction of packaging waste
Circular business models
Own workforce: health and safety
Availability of skilled workforce
Corporate culture
Material IRO’s
Protection of whistleblowers
Directors’ Report and Financial Statements 2025 | 33
The material impacts, risks, and opportunities as identified during the double materiality assessment have been an
important input to the redefined sustainability ambition and the sustainability-related targets that Huhtamaki has defined
as part of the ambition. These targets are a vital input to decision-making, notably through annual action and investment
planning and budgeting processes where sustainability concerns have a direct impact. Key targets are also included in the
Group’s incentive models, as described earlier in this Sustainability Statement.
Huhtamaki business segments are all well positioned to take advantage of the business opportunities and mitigate
sustainability related risks.
Product sustainability is at the core of the Huhtamaki business strategy and business model, and the innovative product
portfolios across business segments allow targeting circularity related opportunities. Innovations in e.g. recycle-ready
mono-material flexible packaging, with blueloop™ solutions within Flexible Packaging, and the use of exclusively recycled
fiber in operations within the Fiber Packaging business, are key levers in taking advantage of these opportunities. High
rates of manufacturing waste recycling and products designed for recycling or composting further drive the circularity of
raw materials and used packaging and represent important opportunities to support customers’ sustainability
expectations.
Additionally, the impact of resource use is managed through a strategic commitment to responsible sourcing, specifically,
the preference for certified fibers. Reducing waste in operations is a key part of the World-Class Operations way of
working, further mitigating the risks and impacts related to resource outflows.
Some of Huhtamaki’s business segments operate energy-intensive manufacturing operations. The improvement of energy
efficiency and reduction of emissions are key focus areas within these segments’ business model and strategic planning.
Addressing this material risk, targeted research and development efforts are underway to develop alternative solutions
for manufacturing operations that mitigate climate-related impacts.
No current financial effects arising from the risks and opportunities were identified during the reporting period.
As described in the next chapter of this Sustainability Statement, Huhtamaki updated the double materiality assessment
during 2025, with the aim to increase the focus and relevance of the material topics and related reporting. This resulted in
a more concise list of material topics, where a number of topics as well as IROs were considered non-material. These
changes and the approach are described in more detail in the relevant chapter.
Description of the processes to identify and assess material impacts, risks and opportunities
Huhtamaki regularly validates its understanding of the material sustainability topics and, during 2025, Huhtamaki
completed an update of the double materiality assessment (DMA) in accordance with the European Sustainability
Reporting Standards (ESRS).
Materiality assessment process
The double materiality assessment update process commenced by completing a description of the Huhtamaki value chain
and validating it to consider the specific features of Huhtamaki’s four business segments. Key stakeholders across the value
chain were identified.
In the second phase, insights from a vast and diverse group of stakeholders were collected to deepen the understanding of
Huhtamaki’s material impacts, risks, and opportunities (IROs). These stakeholders consisted of both users of the
sustainability statement and groups affected by the impacts and included both internal and external stakeholder groups.
Internal stakeholders, notably Huhtamaki employees, were engaged through a survey sent to a representative from all
Huhtamaki manufacturing sites.
External stakeholders covered selected Huhtamaki customers from all business segments, one supplier, and three non-
governmental organizations engaged to represent silent stakeholders. Semi-structured interviews were conducted to gain
insights into material topics. These stakeholders covered all Huhtamaki technologies and businesses and represented the
global scale of Huhtamaki’s operations.
Directors’ Report and Financial Statements 2025 | 34
The input from the stakeholders was an important consideration that was taken into account when refining and
supplementing the formulation of the Huhtamaki IROs, as well as in evaluating the materiality of the IROs.
The materiality assessment of IROs was realized through two workshops where the first one focused on impact materiality
and the second on financial materiality. Huhtamaki’s internal experts participated in the workshop, and they had the
insights gathered from the different stakeholder groups at hand, to inform the overall assessment defined within the
workshops. A global view of the IROs, covering all four Huhtamaki business segments as well as the global reach of its
operations, was applied.
Huhtamaki’s Global Risk Management function participated in the DMA process and provided insights, notably on the
assessment of financial materiality.
In conducting the materiality assessment, the list of sustainability factors covered by the ESRS standard (ESRS 1, Appendix
A, AR 16) has been taken into account. Additionally, potential sector-specific issues have been considered. However, all
impacts, risks, and opportunities (IROs) have been aligned with the ESRS themes.
The initial results defined during the workshops were reviewed thereafter with the key participants to ensure alignment
and reasonableness of the results.
Finally, Huhtamaki leadership weighed in on the materiality assessment by reviewing the definitions as well as the
evaluations of the impact and financial materiality of the identified IROs. The resulting material topics and IROs were
presented to the GET, who reviewed and decided to approve within their meeting the final list of material impacts, risks,
and opportunities.
Climate-related material impacts, risks and opportunities
Huhtamaki’s DMA considers both climate-related physical and transition risks, as well as opportunities, in its own
operations and along the upstream and downstream value chain. Material climate impacts and risks were identified using
the same climate scenario analysis and risk assessment that were applied in Huhtamaki’s previous DMA.
In 2025, Huhtamaki further developed its climate risk analysis. The updated assessment features site-specific evaluations
of physical risks, leveraging geospatial data. For transition risks, the International Energy Agency’s (IEA) Stated Policies
Scenario (STEPS) was used alongside the previously applied Net Zero by 2050 scenario, allowing for a broader exploration
of potential transition pathways. This updated climate scenario analysis was developed in parallel with the most recent
DMA. However, as final results from the new scenario analysis were not yet available during the DMA update, these
findings will be incorporated into future DMA updates.
When identifying actual and potential future GHG emission sources during the double materiality assessment, Huhtamaki
utilized its existing GHG emission calculations and climate risk assessment. Huhtamaki operates in an energy-intensive
industry and therefore emits GHG emissions and has a negative impact on the climate. However, Huhtamaki has devised a
transition plan to mitigate these negative impacts. Huhtamaki calculates its GHG emissions, including its own operations
(Scope 1 and 2) as well as upstream and downstream value chain (Scope 3), and has identified its main emission sources.
Huhtamaki addresses the main emission sources through science-based emission reduction targets and action plans.
Climate-related scenario analysis
Huhtamaki has identified climate-related hazards (floods, storms, heat, drought) as well as transition risks and
opportunities over the short-, medium-, and long-term, and screened whether its assets and business activities may be
exposed to these hazards or climate-related transition events. The defined short- (<3 years), medium- (3-10 years), and
long-term (>10 years) time horizons are aligned with the Group’s strategic planning horizons and capital allocation plans.
Intergovernmental Panel on Climate Change’s (IPCC) climate scenarios were used to identify relevant climate-related
hazards and International Energy Agency’s (IEA) scenarios for transition events. The chosen scenarios are aligned with The
Task Force on Climate-related Financial Disclosures (TCFD) recommendations and leading scientific understanding. Thus,
Huhtamaki believes they cover its plausible risks and uncertainties.
Directors’ Report and Financial Statements 2025 | 35
Physical risks are assessed using projections of climate-related hazards for 2030 and 2050, considering the IPCC’s SSP1-
2.6 and SSP5-8.5 climate scenarios. The SSP1- 2.6 scenario involves limiting global warming to 1.5 °C, and the SSP5-8.5
explores the effects of global warming up to 4°C. The 4°C (SSP5-8.5) scenario is relevant to the resilience of Huhtamaki's
business strategy, as the scenario represents the high greenhouse gas emissions pathway scenario, highlighting the
impacts of physical climate change risks if e.g. political willingness to combat climate change declines. The scenario helps to
identify the assets and business activities that are at the highest risk of physical climate change impacts and to develop
adaptation plans.
The key forces and drivers considered in the 4°C (SSP5-8.5) scenario include lack of political willingness to cease fossil fuel
expansion, high cost of capital to, e.g., increase renewable energy capacity, a high population growth increasing energy
consumption and significant deforestation and urbanization reducing natural carbon sinks as well as an unwillingness to
pay more for less carbon-intensive products. These forces and drivers are relevant to Huhtamaki as they shape the
macroeconomic trends, policy assumptions, energy usage and mix, and technological advancements that directly impact
the Group’s operations, costs, and strategic planning. The key constraints in the SSP5-8.5 scenario include limited resource
availability for fossil fuel extraction, increasing costs over time, and potential irreversible ecosystem damage. The 1.5°C
(SSP1- 2.6) scenario identifies the minimum level of climate change physical risks.
High-level assessment of the extent to which Huhtamaki’s assets and business activities are exposed and sensitive to the
identified climate-related hazards is based on historic exposure and anticipated future development, based on the
likelihood and frequency of the hazards in alternative climate scenarios. Geospatial coordinates (such as Nomenclature of
Territorial Units of Statistics- NUTS for the EU territory) specific to Huhtamaki’s locations and supply chains have not been
considered.
Climate-related transition risks and opportunities in own operations and along the upstream and downstream value chain
were assessed under the International Energy Agency’s (IEA) Net Zero by 2050 scenario. The exposure of Huhtamaki’s
assets and business activities to transition events—including changes in policies and legal frameworks, technologies,
market conditions, and reputation—was assessed considering both their likelihood and magnitude in the short-, medium-
and long-term.
The IEA’s Net Zero Emissions by 2050 scenario outlines a science-based pathway for achieving
net zero CO
₂
emissions
from the energy and industry sectors by 2050. The Net Zero by 2050 scenario is relevant to the packaging sector, which
depends on energy-intensive materials. It evaluates the impact of robust global mitigation measures—such as carbon
pricing, electrification, and supply chain restructuring—on packaging production and emissions, making it suitable for
assessing transition risks. The scenario has been used to assess the resilience of Huhtamaki’s business strategy, taking into
account the goals of the Paris Agreement and the latest international climate commitments. The scenario underscores the
importance of investing in sustainable practices, complying with evolving climate policies, and adopting technological
innovations to reduce operational costs and strengthen market competitiveness. However, this scenario requires
substantial investment in renewable energy and carbon capture, reinforced by strong international climate policies.
Achieving rapid transition also involves overcoming significant technological, economic, and social challenges,
necessitating coordinated global action and widespread behavioral change.
The results of the climate scenario analysis are discussed in the section Climate resiliency analysis methodology under the
E1 Climate Change topical chapter.
As described in the chapter Locked-in emissions, Huhtamaki has identified that a significant share of its Scope 1 emissions
represents locked-in emissions coming from assets utilized in production processes. To replace or retrofit these assets
requires financing, creating a transition risk. The related emissions are also at risk of increasing carbon pricing. Huhtamaki
has begun to prepare a transition plan to mitigate the locked-in emissions and related transition risks. Similarly, parts of
Huhtamaki’s business activities are incompatible with the requirements for Taxonomy-alignment.
The critical climate-related assumptions disclosed in the Financial Statements are compatible with the scenarios, and at the
end of the reporting period, climate-related matters did not have a material impact.
Directors’ Report and Financial Statements 2025 | 36
Pollution-related impacts, risks and opportunities
During the double materiality assessment impacts, risks and opportunities for pollution were identified and assessed. The
assessment was done following the overall DMA methodology as described below, with assessment on the segment level.
Site-level assessment or consultation with affected communities in relation to pollution were not conducted.
Water-related material impacts, risks and opportunities
Huhtamaki recognizes that water is an important resource for the manufacture of its fiber products, whereas other
technologies are not dependent on water.
During 2025 Huhtamaki conducted an assessment of the water related financial risks supported by a third-party
consultancy. Huhtamaki uses the results from this assessment in combination with the information obtained through
internal sustainability reporting regarding water usage and discharge data to assess the water-related risks thoroughly.
These assessments provide insights into the water basins, validate risk ratings, and help prioritize the next steps for
Huhtamaki, as well as inform the assessment conducted as part of the double materiality assessment. Huhtamaki’s double
materiality assessment did not include consultations with affected communities on sustainability assessments of shared
water resources and affected basins.
Impacts, risks and opportunities related to biodiversity and ecosystems
When identifying actual and potential future biodiversity and ecosystems related impacts, risks, and opportunities during
the double materiality assessment, Huhtamaki utilized the results from its existing assessments related to biodiversity and
ecosystems. Huhtamaki is an early adopter of the Taskforce on Nature-related Financial Disclosures (TNFD), and has
commenced an assessment according to LEAP approach to assess dependencies on biodiversity and ecosystem services,
notable forest ecosystems. The potential risks associated with these topics were further assessed as part of the DMA
process, applying the same criteria, scope, and methodology as the overall DMA. The risk scanning included physical,
transition, and systemic risk types.
Huhtamaki is committed to identifying and mitigating the impact of its operations on biodiversity. The Group favors the
use of certified fiber and uses only limited amounts of virgin fiber. Huhtamaki annually maps the locations of its
manufacturing sites to identify whether they are located in or near biodiversity-sensitive areas. Some of Huhtamaki’s sites
are situated within or adjacent to biodiversity-sensitive areas. Huhtamaki has not yet concluded whether it is necessary to
implement biodiversity mitigation measures for these sites; however, as part of the TNFD assessment, Huhtamaki is in the
process of objectively identifying biodiversity impacts at sites and mapping the need for any mitigation measures.
Huhtamaki’s ambition is to move to circular business models, supporting the sustainability ambitions of the Group’s
customers. The Group’s sustainability actions hence support reducing dependency on virgin raw materials, downstream
waste generation and the risk of not meeting customer requirements.
Huhtamaki’s double materiality assessment did not include consultations with affected communities on sustainability
assessments of shared biological resources and ecosystems.
Impacts, risks, and opportunities related to resource use and circular economy
The process to identify actual and potential future resource use and circular economy related impacts, risks, and
opportunities followed the general process of the double materiality assessment. The process included a consultation with
affected communities by proxy, through interviews with non-governmental organizations that voiced these silent
stakeholders.
Directors’ Report and Financial Statements 2025 | 37
Impacts, risks, and opportunities related to business conduct
Impacts, risks, and opportunities related to business conduct were assessed as part of the double materiality assessment.
The assessment highlighted Huhtamaki’s positive impact from upholding its corporate values and culture, promoting
ethical business conduct, and establishing whistleblower protection.
Methodology and assumptions of the Double Materiality Assessment
When evaluating impacts, risks, and opportunities, the assessment considered whether they are actual, meaning they are
already happening, or potential, meaning they may occur with some probability. The likelihood of potential impacts has
been assessed, and the significance of the IROs has been weighted by multiplying their impact by the likelihood. The
likelihood of actual impacts is 100%.
The time horizon for the realization of IROs has been defined into three categories: short-term, medium-term, and long-
term:
•
Short-term refers to IROs materializing within the fiscal year
•
Medium-term refers to a timeframe of 2–5 years
•
Long-term refers to IROs materializing beyond five years.
IROs have been identified not only for Huhtamaki’s own operations but also for the upstream and downstream parts of the
value chain. This approach aims to understand which impacts are driven by the Group’s strategy and business model, and
which arise from its business relationships.
The threshold has been analyzed by Huhtamaki’s experts and management, and it was set to ensure that the most
significant and noteworthy impacts are recognized as material. It has been determined that the most severe and significant
impacts on a scale of 1–5 start at a value of 4 (80% or higher), while material risks and opportunities start at a value of 3
(60% or higher).
For defining the material topics to be included in this sustainability statement, if a given topic contains a material IROs, the
topic, sub-topic, or sub-sub-topic is considered to be material.
Decision-making process for materiality
The results of the double materiality assessment were reviewed, and the decision to approve was made by Huhtamaki
Global Executive Team. Thereafter the results were reviewed by the Audit Committee (AC). In accordance with the Finnish
Companies Act, the Audit Committee monitors the process carried out to identify the information reported in accordance
with the sustainability reporting standards.
The process for the double materiality assessment update during 2025 was extensive to reflect the amended sustainability
ambition as well as the aim to increase the focus of reporting. The process encompassed extensive hearing of internal and
external stakeholders, beyond the approach applied in 2024. In the coming years Huhtamaki expects to perform the DMA
update through a review to identify material changes in its own operations, strategy, or the environment, and perform a
full assessment only in case significant changes are observed.
Directors’ Report and Financial Statements 2025 | 38
Environmental information
EU Taxonomy
The EU Taxonomy is a green classification system that translates the EU’s climate and environmental objectives into
criteria for specific economic activities for investment purposes. It recognizes as environmentally sustainable those
economic activities that make a substantial contribution to at least one of the EU’s six environmental objectives, while at
the same time not significantly harming any of these objectives and meeting minimum social safeguards. The six
environmental objectives that are published as a Delegated Act address emission-intensive economic activities with the
aim of guiding development towards sustainable production.
The Commission Delegated Act (EU) 2026/73 gives the possibility to apply the previous EU Taxonomy rules (including the
related delegated acts), that were applicable also for sustainability statements concerning the year 2024. This possibility
has been applied in the 2025 EU Taxonomy reporting.
Nuclear and fossil gas related activities
Taxonomy-eligible activities
An economic activity is considered Taxonomy-eligible if it is referenced by the Taxonomy and has the potential to enable
achieving at least one of the six environmental objectives: 1) Climate change mitigation, 2) Climate change adaptation, 3)
Sustainable use and protection of water and marine resources, 4) Transition to a circular economy, 5) Pollution prevention
and control, and 6) Protection and restoration of biodiversity and ecosystems.
Huhtamaki has assessed its eligibility and alignment with the six environmental objectives by screening the economic
activities in the Climate Delegated Act (Commission Delegated Regulation (EU) 2021/2139), the Complementary Climate
Delegated Act (Commission Delegated Regulation (EU) 2022/1214), the Environmental Delegated Act (Commission
Delegated Regulation (EU) 2023/2486), and the amendments to the Climate Delegated Act (Commission Delegated
Regulation (EU) 2023/2485).
Through this assessment, Huhtamaki has evaluated that the Group’s activities in producing plastic packaging goods fall
under objective 4: Transition to circular economy (CE1.1).
The eligible activities have been defined with reference to the Statistical classification of economic activities in the
European Community (NACE) and the suggested EU Packaging and Packaging Waste Regulation. In relation to the
material content, the NACE classification 22.2 (Manufacture of plastic products) and 22.22 (Manufacture of plastic
packaging goods) include products where the primary material is plastic, which Huhtamaki interprets as products with over
50% plastic raw material content by weight. The definition of packaging goods has been aligned with the Packaging and
Row
Nuclear energy related activities
1.
The undertaking carries out, funds or has exposures to research, development, demonstration and
deployment of innovative electricity generation facilities that produce energy from nuclear processes
with minimal waste from the fuel cycle.
NO
2.
The undertaking carries out, funds or has exposures to construction and safe operation of new nuclear
installations to produce electricity or process heat, including for the purposes of district heating or
industrial processes such as hydrogen production, as well as their safety upgrades, using best available
technologies.
NO
3.
The undertaking carries out, funds or has exposures to safe operation of existing nuclear installations
that produce electricity or process heat, including for the purposes of district heating or industrial
processes such as hydrogen production from nuclear energy, as well as their safety upgrades.
NO
Fossil gas related activities
4.
The undertaking carries out, funds or has exposures to construction or operation of electricity
generation facilities that produce electricity using fossil gaseous fuels.
NO
5.
The undertaking carries out, funds or has exposures to construction, refurbishment, and operation of
combined heat/cool and power generation facilities using fossil gaseous fuels.
NO
6.
The undertaking carries out, funds or has exposures to construction, refurbishment and operation of
heat generation facilities that produce heat/cool using fossil gaseous fuels.
NO
Directors’ Report and Financial Statements 2025 | 39
Packaging Waste Regulation, and hence also encompasses cups, bowls, plates and their lids in addition to the bags, sacks,
and pouches listed in the NACE definition. Huhtamaki has such products in three of the Group’s four business segments.
The non-eligible economic activities Huhtamaki has identified consist of the production of fiber-based paperboard
packaging, which fall under the categories of manufacture of articles of paper and paperboard (NACE 17.2) and
manufacture of corrugated paper and paperboard and of containers of paper and paperboard (NACE 17.21).
The determination of eligible Turnover, CapEx, and OpEx have been done as follows:
•
A review of all Huhtamaki products and activities to identify eligible and non-eligible economic activities, to ensure that
all material activities have been accounted for in the EU Taxonomy indicators
•
Review of the Huhtamaki product portfolio to identify eligible products
•
Extract the turnover for the eligible products
•
Identify CapEx and OpEx associated with the manufacturing of the eligible products
•
CapEx and OpEx associated with both eligible and non-eligible products have been allocated to the eligible products
based on turnover
•
Double counting is avoided by ensuring that turnover, CapEx, and OpEx are only reported once to the taxonomy
activity and only to one environmental objective
The share of taxonomy-eligible turnover as well as OpEx have remained stable compared to 2024. CapEx related to the
taxonomy-eligible activities has reduced due to the Group’s strategic focus on disciplined capital allocation and increased
scrutiny of capital investment.
Taxonomy-aligned activities
Regulation (EU) 2020/852, article 3, sets out criteria that an economic activity must meet to qualify as environmentally
sustainable (Taxonomy-aligned):
•
Substantially contribute to the environmental objectives
•
Do no significant harm (DNSH) to the other five objectives
•
Comply with minimum safeguards covering social and governance standards
Taxonomy-alignment of the identified eligible activity has been assessed against Annex II of the Environmental Delegated
Act.
The stringent criteria relevant to the economic activity of the manufacture of plastic packaging goods are such that
Huhtamaki is not currently able to show alignment with this environmental objective. Notably, the requirement that at
least 35% of packaging products by weight consist of recycled post-consumer material for non-contact sensitive packaging,
and at least 10% for contact sensitive packaging is not yet reached within Huhtamaki’s current plastic product portfolio.
This is due to the nature of Huhtamaki’s product portfolio, which mainly serves the food sector, for which the use of
mechanically recycled plastics in packaging is not allowed due to food safety concerns. The market currently does not have
sufficient supply of chemically recycled plastics that could be used for food product packaging.
Huhtamaki continues to develop its Taxonomy-related reporting and will take action in coming years towards achieving
the technical screening criteria in order to report alignment with the EU Taxonomy environmental objectives.
Taxonomy reporting principles
Turnover
Turnover under the EU Taxonomy is equal to consolidated net sales as reported in the consolidated statement of income,
amounting to EUR 3,960.2 million (EUR 4,126.3 million).
Capital Expenditure
CapEx under the EU Taxonomy is the sum of additions in tangible assets, intangible assets (excluding goodwill and
customer relations), and right-of-use assets from both investments and acquisitions resulting from business combinations.
Additions in tangible assets and intangible assets are reported as capital expenditure in the consolidated statement of cash
flows amounting to EUR 171.9 million (EUR 247.9 million). CapEx related to right-of-use assets is reported in note 3.4 of
the consolidated financial statements, amounting to EUR 79.7 million (EUR 35.0 million). Additions related to acquisitions
were EUR 13.8 million (in 2024, there was no additions related to acquisitions).
Directors’ Report and Financial Statements 2025 | 40
Operating Expenditure
OpEx under the EU Taxonomy is defined as the direct non-capitalized costs related to maintenance and servicing of assets,
including costs for repairs and maintenance, research and development, short-term leases, and other similar costs,
amounting to EUR 205.4 million (EUR 211.2 million).
Directors’ Report and Financial Statements 2025 | 41
Financial year 2025
Year
Substan
Ɵ
al contribu
Ɵ
on criteria
DNSH criteria (“Does Not Signi
fi
cantly Harm”)
Economic Ac
Ɵ
vi
Ɵ
es (1)
Code
(2)
Turnover
(3)
Propor
Ɵ
on
of Turnover,
2025 (4)
Climate
Change
Mi
Ɵ
ga
Ɵ
on
(5)
Climate
Change
Adapta
Ɵ
on
(6)
Water (7)
Pollu
Ɵ
on
(8)
Circular
Economy
(9)
Biodiversit
y (10)
Climate
Change
Mi
Ɵ
ga
Ɵ
on
(11)
Climate
Change
Adapta
Ɵ
on
(12)
Water (13)
Pollu
Ɵ
on
(14)
Circular
Economy
(15)
Biodiversit
y (16)
Minimum
Safeguard
s (17)
Propor
Ɵ
on
of
Taxonomy-
aligned
(A.1.) or -
eligible
(A.2.)
Turnover,
2024 (18)
Category
enabling
ac
Ɵ
vity
(19)
Category
transi
Ɵ
ona
l
ac
Ɵ
vity
(20)
MEUR
%
Y; N; N/EL
Y; N; N/EL
Y; N; N/EL
Y; N; N/EL
Y; N; N/EL
Y; N; N/EL
Y/N
Y/N
Y/N
Y/N
Y/N
Y/N
Y/N
%
E
T
TAXONOMY-ELIGIBLE ACTIVITIES
Environmentally
sustainable
ac
Ɵ
vi
Ɵ
es
(Taxonomy-aligned)
Turnover of environmentally sustainable ac
Ɵ
vi
Ɵ
es (Taxonomy-
aligned) (A.1)
Of which enabling
Of which transi
Ɵ
onal
Taxonomy-eligible but not environmentally sustainable
ac
Ɵ
vi
Ɵ
es (not Taxonomy-aligned ac
Ɵ
vi
Ɵ
es)
EL; N/EL
EL; N/EL
EL; N/EL
EL; N/EL
EL; N/EL
EL; N/EL
Manufacture of plas
Ɵ
c packaging goods
CE1.1
1,324.8
33 %
N/EL
N/EL
N/EL
N/EL
EL
N/EL
34%
Turnover
of
Taxonomy-eligible
but
not
environmentally
sustainable ac
Ɵ
vi
Ɵ
es (not Taxonomy-aligned ac
Ɵ
vi
Ɵ
es) (A.2)
1,324.8
33 %
34 %
Turnover of Taxonomy-eligible ac
Ɵ
vi
Ɵ
es (A.1+A.2)
1,324.8
33 %
34 %
TAXONOMY-NON-ELIGIBLE ACTIVITIES
Turnover of Taxonomy-non-eligible ac
Ɵ
vi
Ɵ
es
2,635.4
67 %
66 %
TOTAL
3,960.2
100 %
100 %
Turnover KPI
Directors’ Report and Financial Statements 2025 | 42
Financial year 2025
Year
Substan
Ɵ
al contribu
Ɵ
on criteria
DNSH criteria (“Does Not Signi
fi
cantly Harm”)
Economic Ac
Ɵ
vi
Ɵ
es (1)
Code
(2)
CapEx (3)
Propor
Ɵ
on
of CapEx,
2025 (4)
Climate
Change
Mi
Ɵ
ga
Ɵ
on
(5)
Climate
Change
Adapta
Ɵ
on
(6)
Water (7)
Pollu
Ɵ
on
(8)
Circular
Economy
(9)
Biodiversit
y (10)
Climate
Change
Mi
Ɵ
ga
Ɵ
on
(11)
Climate
Change
Adapta
Ɵ
on
(12)
Water (13)
Pollu
Ɵ
on
(14)
Circular
Economy
(15)
Biodiversit
y (16)
Minimum
Safeguard
s (17)
Propor
Ɵ
on
of
Taxonomy-
aligned
(A.1.) or -
eligible
(A.2.)
CapEx,
2024 (18)
Category
enabling
ac
Ɵ
vity
(19)
Category
transi
Ɵ
ona
l
ac
Ɵ
vity
(20)
MEUR
%
Y; N; N/EL
Y; N; N/EL
Y; N; N/EL
Y; N; N/EL
Y; N; N/EL
Y; N; N/EL
Y/N
Y/N
Y/N
Y/N
Y/N
Y/N
Y/N
%
E
T
TAXONOMY-ELIGIBLE ACTIVITIES
Environmentally
sustainable
ac
Ɵ
vi
Ɵ
es
(Taxonomy-aligned)
CapEx of environmentally sustainable ac
Ɵ
vi
Ɵ
es (Taxonomy-
aligned) (A.1)
Of which enabling
Of which transi
Ɵ
onal
Taxonomy-eligible but not environmentally sustainable
ac
Ɵ
vi
Ɵ
es (not Taxonomy-aligned ac
Ɵ
vi
Ɵ
es)
EL; N/EL
EL; N/EL
EL; N/EL
EL; N/EL
EL; N/EL
EL; N/EL
Manufacture of plas
Ɵ
c packaging goods
CE1.1
41.6
16 %
N/EL
N/EL
N/EL
N/EL
EL
N/EL
30 %
CapEx of Taxonomy-eligible but not environmentally sustainable
ac
Ɵ
vi
Ɵ
es (not Taxonomy-aligned ac
Ɵ
vi
Ɵ
es) (A.2)
41.6
16 %
30 %
CapEx of Taxonomy-eligible ac
Ɵ
vi
Ɵ
es (A.1+A.2)
41.6
16 %
30 %
TAXONOMY-NON-ELIGIBLE ACTIVITIES
CapEx of Taxonomy-non-eligible ac
Ɵ
vi
Ɵ
es
223.9
84 %
70 %
TOTAL
265.5
100 %
100 %
CapEx
KPI
Directors’ Report and Financial Statements 2025 | 43
Financial year 2025
Year
Substan
Ɵ
al contribu
Ɵ
on criteria
DNSH criteria (“Does Not Signi
fi
cantly Harm”)
Economic Ac
Ɵ
vi
Ɵ
es (1)
Code
(2)
OpEx (3)
Propor
Ɵ
on
of OpEx,
2025 (4)
Climate
Change
Mi
Ɵ
ga
Ɵ
on
(5)
Climate
Change
Adapta
Ɵ
on
(6)
Water (7)
Pollu
Ɵ
on
(8)
Circular
Economy
(9)
Biodiversit
y (10)
Climate
Change
Mi
Ɵ
ga
Ɵ
on
(11)
Climate
Change
Adapta
Ɵ
on
(12)
Water (13)
Pollu
Ɵ
on
(14)
Circular
Economy
(15)
Biodiversit
y (16)
Minimum
Safeguard
s (17)
Propor
Ɵ
on
of
Taxonomy-
aligned
(A.1.) or -
eligible
(A.2.) OpEx,
2024 (18)
Category
enabling
ac
Ɵ
vity
(19)
Category
transi
Ɵ
ona
l
ac
Ɵ
vity
(20)
MEUR
%
Y; N; N/EL
Y; N; N/EL
Y; N; N/EL
Y; N; N/EL
Y; N; N/EL
Y; N; N/EL
Y/N
Y/N
Y/N
Y/N
Y/N
Y/N
Y/N
%
E
T
TAXONOMY-ELIGIBLE ACTIVITIES
Environmentally
sustainable
ac
Ɵ
vi
Ɵ
es
(Taxonomy-aligned)
OpEx of environmentally sustainable ac
Ɵ
vi
Ɵ
es (Taxonomy-
aligned) (A.1)
Of which enabling
Of which transi
Ɵ
onal
Taxonomy-eligible but not environmentally sustainable
ac
Ɵ
vi
Ɵ
es (not Taxonomy-aligned ac
Ɵ
vi
Ɵ
es)
EL; N/EL
EL; N/EL
EL; N/EL
EL; N/EL
EL; N/EL
EL; N/EL
Manufacture of plas
Ɵ
c packaging goods
CE1.1
52.3
25 %
N/EL
N/EL
N/EL
N/EL
EL
N/EL
26 %
OpEx of Taxonomy-eligible but not environmentally sustainable
ac
Ɵ
vi
Ɵ
es (not Taxonomy-aligned ac
Ɵ
vi
Ɵ
es) (A.2)
52.3
25 %
26 %
OpEx of Taxonomy-eligible ac
Ɵ
vi
Ɵ
es (A.1+A.2)
52.3
25 %
26 %
TAXONOMY-NON-ELIGIBLE ACTIVITIES
OpEx of Taxonomy-non-eligible ac
Ɵ
vi
Ɵ
es
153.1
75 %
74 %
TOTAL
205.4
100 %
100 %
OpEx KPI
Directors’ Report and Financial Statements 2025 | 44
ESRS E1 Climate change
Transition plan for climate change mitigation
Embedding transition plan in business strategy and financial planning
Huhtamaki has a transition plan to mitigate climate change, which is integrated into its overall business strategy and
financial planning. The Group’s strategy emphasizes sustainable innovation in collaboration with customers and aims to
achieve world-class operational performance globally. Huhtamaki invests in developing sustainable products that are
recyclable, compostable, or reusable, have a lower carbon footprint than their predecessors, and are made from
responsibly sourced materials. To drive global competitiveness, Huhtamaki focuses on enhancing operational efficiency,
including improving energy efficiency, reducing water and material consumption, and minimizing waste. These strategic
initiatives help mitigate Huhtamaki’s greenhouse gas emissions from its own operations, as well as across its upstream and
downstream value chain.
Sustainability investments are embedded within the Group’s financial plan and are integrated into the strategic plans
(three-year planning) of each Huhtamaki segment. Furthermore, Huhtamaki’s climate transition plan is featured in its
global short-term incentive plan, as detailed in the “Integration of sustainability-related performance in incentive schemes”
section on page 23. This plan consists of the indicators of the GSSI framework, which includes, among others, KPIs to
increase the share of renewable electricity and the share of renewable or recycled materials that contribute to reductions
in Scope 2 and Scope 3 emissions.
Science-based emission reduction targets
Huhtamaki is committed to contributing to climate change mitigation by implementing its greenhouse gas (GHG) emission
reduction targets which were approved by the Science-based targets initiative (SBTi) in 2025. Huhtamaki’s science-based
near-term target (SBT) for Scopes 1 and 2 is compatible with limiting global warming to 1.5°C. The targets cover the main
emission sources from Huhtamaki’s own operations as well as upstream and downstream value chain.
In the near-term, Huhtamaki commits to reducing its absolute scope 1 and 2 GHG emissions by 50.44% by 2030 from a
2022 base year. Huhtamaki also commits to reduce absolute scope 3 GHG emissions from purchased goods and services,
fuel- and energy-related activities, upstream transportation and distribution, waste generated in operations, business
travel and employee commuting by 25.0% within the same timeframe.
Huhtamaki does not currently have significant operational or capital expenditures allocated for the implementation of the
defined climate-related actions or transition plan. However financial resources are reserved in annual budgets and three-
year plans along with dedicated Group and Segment personnel to support implementation. Huhtamaki has committed to
set long-term, Group-wide emission reduction targets in line with science-based net-zero with the SBTi. As part of its long-
term target-setting process, Huhtamaki is developing a comprehensive transition plan that outlines the necessary actions,
investments, and funding required to achieve its goals.
Transition plan, decarbonization levers and progress
Huhtamaki’s transition plan to achieve its science-based emission reduction targets encompasses multiple decarbonization
levers aimed at reducing emissions across Scope 1, Scope 2, and Scope 3.
For Scope 1 and Scope 2, the primary levers to reduce fossil fuel consumption include improving energy efficiency, fuel
switching, electrification, the use of renewable electricity, and clean technology development. Since the 2022 base year,
Huhtamaki has decreased its Scope 1 and 2 emissions primarily by increasing the proportion of renewable electricity in its
operations. Main actions taken in 2025 and planned include further increasing the share of renewable electricity and
enhancing energy efficiency.
For Scope 3, the primary decarbonization levers include engaging with suppliers to reduce emissions, increasing the
renewable and recycled content in products, and establishing efficient recycling systems. Reducing Scope 3 emissions
necessitates collaboration across the entire value chain with key suppliers, customers, industry groups, and research
Directors’ Report and Financial Statements 2025 | 45
institutions. This collaborative effort is essential for reducing product emissions, innovating low carbon materials and
packaging designs, and promoting collection and circularity to minimize end-of-life emissions. Utilizing recycled materials
reduces the dependence on virgin raw materials, which typically require more energy and resources to produce.
Huhtamaki's Scope 3 emissions have fluctuated in line with production volumes. In 2025, Huhtamaki actively pursued
opportunities to increase the use of Post-Industrial Recycled (PIR) and Post-Consumer Recycled (PCR) materials, aiming
to reduce greenhouse gas emissions associated with plastics.
Huhtamaki’s current transition plan and the targets associated with it were approved by the Huhtamaki Board and GET in
2025.
Locked-in emissions
Huhtamaki's Scope 1 greenhouse gas (GHG) emissions are partly derived from production processes that rely on assets
associated with locked-in GHG emissions, primarily using natural gas. These locked-in emissions do not jeopardize
Huhtamaki’s near-term emission reduction targets.
Achieving long-term alignment with the 1.5°C climate target requires modifying these production processes by either
replacing or retrofitting existing assets with alternatives such as electrification or fuel switching. In 2025, Huhtamaki
advanced the development of new technical solutions aimed at reducing emissions from greenhouse gas-intensive
manufacturing assets. Research and development activities focused on identifying opportunities for energy use
optimization, fuel switching, and electrification, targeting the mitigation of locked-in emissions.
Taxonomy Regulation and Paris-aligned Benchmarks
Huhtamaki’s approach to the EU Taxonomy has been detailed earlier in the “EU Taxonomy” section on page 31.
Huhtamaki is not excluded from the Paris-aligned Benchmarks as the Group is not involved in environmentally harmful
practices as specified in Article 12 of the Commission delegated regulation (EU) 2020/1818.
.
Directors’ Report and Financial Statements 2025 | 46
Material impacts and risks related to climate change adaptation, mitigation and energy
Material impact or risk
Description
Applicability
Climate change adaptation
n/a
Climate change mitigation
Negative
impact
Generation of
greenhouse gas
emissions
Huhtamaki's own operations emit GHG emissions (Scope 1 and 2)
into the atmosphere, creating a negative impact.
Own
operations
Negative
impact
Generation of
greenhouse gas
emissions
Huhtamaki's activities in the value chain (sourcing, and end-of-life)
emit GHG emissions (Scope 3) into the atmosphere, creating a
negative impact.
Value Chain
Risk
GHG emission impact
on finance
Huhtamaki's GHG emissions impact finances via increased carbon
pricing, such as the EU and UK Emissions Trading Systems (ETS), and
bonds linked to sustainability indicators. Failure to meet Scope 1 and
2 targets can have a negative financial impact. Increased carbon
pricing is considered a material climate-related transition risk.
Upstream and
own operations
Energy
Negative
impact
Energy consumption
in value chain and
own production
process
Huhtamaki operates in an industry using different forms of energy
(electricity, fuels) in the production of raw materials (paperboard,
plastics) and in its own processing operations.
Upstream and
own operations
imat
Climate resiliency analysis and methodology
Huhtamaki has assessed the resilience of its strategy and business model through a climate resilience analysis carried out
alongside the climate scenario analysis that is described in the “Climate-related scenario analysis” on page 34. The scope
covers Huhtamaki’s own operations as well as the upstream and downstream value chain. All material physical risks and
transition risks have been included in the analysis. The short- (<3 years), medium- (3–10 years), and long-term (>10 years)
time horizons are applied in alignment with the climate and business scenarios considered for determining material
physical and transition risks, as well as for setting greenhouse gas (GHG) emissions reduction targets.
Huhtamaki has made some critical assumptions about how the transition to a lower-carbon and resilient economy will
affect its surrounding macroeconomic trends, energy consumption and mix, and technology deployment. Huhtamaki
assumes enhanced government policies will support renewable energy and increased carbon pricing to reduce GHG
emissions to limit global warming to 1.5°C. These policy measures, along with incentives, are expected to encourage
greater investment in renewable energy. By 2030, Huhtamaki expects advancements in clean technology, renewable
energy, and energy efficiency. The Group also assumes continued growth in consumer demand for sustainable packaging
and stable economic conditions conducive to sustainability investments.
Huhtamaki considered high-level estimates of anticipated financial effects of material physical and transition risks, as well
as the identified mitigation actions and resources, as part of its Double Materiality Assessment.
Directors’ Report and Financial Statements 2025 | 47
Climate scenario analysis scope and methodology
Primary physical risks potentially affecting Huhtamaki’s property, operations, employees and supply chains include floods
and heavy precipitation, water stress and heat stress, as well as storms. Floods and storms pose threats to Huhtamaki’s
property. Heat and drought may lead to interruptions in production due to the impacts on employees’ health and
interruptions in water supply. Drought intensifies the risk of forest fires, and milder winters are likely to amplify the impact
of pests and diseases on forestry yield in the northern areas. Extreme weather conditions may lead to disruptions in supply
chains, affecting the transportation of both raw materials and finished products.
In the short- and medium-term, the physical risks are expected to remain moderate under both SSP1-2.6 and SSP5-8.5
scenarios. In the long term, physical risks are expected to increase particularly under the 4°C (SSP5-8.5) scenario.
Huhtamaki continuously develops its operational footprint to adapt to evolving business environments. Physical climate-
related risks are expected to remain moderate, as the Group’s operations are well diversified globally. Consequently,
physical impacts of climate change are not regarded as posing significant financial risks to the Group, and thus not
considered as material. Huhtamaki assumes that physical climate change impacts will evolve over a longer time horizon,
providing sufficient opportunity to adapt and, if necessary, redeploy, repurpose, or decommission existing assets.
Under the IEA’s Net Zero by 2050 scenario, transition risks are present and are expected to gradually increase in the short,
medium and long term. Regulatory changes may impact packaging businesses through material bans or increased recycled
content requirements. However, these measures are primarily driven by circularity rather than climate considerations.
Regulatory changes, especially those linked to carbon pricing and product standards, may vary across geographies and they
present a degree of unpredictability. Investments in sustainable product innovation and the climate transition plan are
incorporated into Huhtamaki’s financial planning and reviewed as part of financial reporting. In addition to increasing
regulation, market prices of raw materials and energy may rise due to increased demand for biobased materials and
renewable energy. Carbon pricing has been identified as a material transition risk during Huhtamaki’s updated DMA based
on high-level financial impact assessment.
The areas of uncertainty related to the resilience analysis include the pace of technological development, changes in market
and regulatory environments, and evolving consumer preferences.
Potential resistance to changes in packaging and shifts
in government policies could impact initiatives. Identified constraints include limited resource availability for large-scale
renewable energy deployment, high upfront capital investments, and operational challenges in retrofitting facilities, and
sourcing sustainable raw materials at scale.
Huhtamaki’s resilience to climate change
Huhtamaki’s resilience to climate change is founded on its sustainability-driven strategy and diversified global presence.
Huhtamaki continuously works to increase the proportion of renewable or recycled content in its products and to enhance
operational efficiency. The Group has adapted its strategy and business model to integrate climate considerations in the
short- and medium-term by setting greenhouse gas (GHG) reduction targets and establishing action plans aligned with the
1.5°C scenario for Scope 1 and 2 emissions. The Group is also committed to establishing long-term 1.5°C-aligned targets
and developing a comprehensive transition plan to strengthen its overall climate resilience.
The Group has sufficient access to funding to ensure adequate financial resources under all foreseeable circumstances.
Detailed information on the Group's access to affordable funding can be found in the Liquidity and Refinancing Risk section
of Note 5.7, 'Management of Financial Risks,' in the consolidated financial statements.
Huhtamaki’s strategy focuses on sustainable packaging solutions to meet future needs. For the medium- and long-term,
the Group is actively developing its offerings and technology to address future challenges and mitigate risks. New product
innovations contribute to the circular economy, creating opportunities to combat climate change and respond to evolving
customer preferences. Huhtamaki is investing in strategic capabilities to drive its transformation journey; more details are
available in the Actions related to own workforce section. Huhtamaki closely monitors anticipated regulatory changes
globally and collaborates with key customers to develop products that meet their needs. The Group also tracks fluctuations
in raw material and energy prices, employing active price management to mitigate associated risks.
Policies related to climate change mitigation
Directors’ Report and Financial Statements 2025 | 48
Huhtamaki’s Group Environmental Policy addresses the management of its material impacts, risks, and opportunities
associated with climate change across the Group’s operations and value chain. The policy details Huhtamaki’s commitment
to climate change mitigation by reducing greenhouse gas emissions in line with science-based targets, as well as
implementing initiatives to continuously improve energy efficiency and increase the share of renewable energy in the
energy mix. In addition to mitigation, the policy encompasses climate change adaptation, requiring ongoing assessment of
short-, medium-, and long-term physical climate risks and transition risks.
The Group Environmental Policy is designed and managed in collaboration with the relevant global functions. It is approved
by the GET and applies to all Huhtamaki entities and operations globally, as well as to all external workforce under
Huhtamaki’s direction on the Group’s premises. The Group Environmental Policy is publicly available on the Huhtamaki
website.
The Code of Conduct for Huhtamaki Suppliers further outlines Huhtamaki’s climate-related expectations for its suppliers.
This includes complying with applicable environmental laws and regulations, making efforts to reduce environmental
impacts, including energy use, striving to minimize environmental impacts including making efforts to reduce greenhouse
gas emissions in their own operations and value chain, and not sourcing materials that contribute to deforestation of high
conservation value areas.
The Code of Conduct for Huhtamaki Suppliers is publicly available on the Huhtamaki website.
Actions related to climate change mitigation and adaptation
Climate is among the key focus areas of the 2030 sustainability agenda and Huhtamaki is committed to driving the
transition to a low carbon and circular economy.
Activities in 2025:
Mitigation and energy, own operations (Scope 1 + 2):
Use of renewable energy:
Huhtamaki continued to increase the share of renewable electricity utilized across its sites. The
estimated GHG emission reduction compared to previous year is 3,000 tCO2e.
Energy efficiency:
In line with Huhtamaki’s 2030 strategy, with an ambition of annual net sales growth of 5-6%, achieving
absolute emissions reductions is challenging. To address this, Huhtamaki implements continuous energy efficiency
improvements at its sites to mitigate the climate impact associated with business growth. Recent measures include
replacing outdated chillers with high-efficiency models at two locations and upgrading heat recovery systems at another
site. The estimated emission reduction impact fo these initiatives is 4,500 tCO
₂
e.
Fuel switching:
Huhtamaki has assessed opportunities for fuel switching at several sites as part of its efforts to reduce
Scope 1 emissions. However, these initiatives are still in the evaluation phase and have not yet resulted in measurable
greenhouse gas emission reductions.
Electrification:
Electrification has been identified as one option for addressing Scope 1 emissions. Through ongoing
research and development activities, Huhtamaki is exploring options to advance electrification of its operations. However,
these initiatives are still in the exploratory phase and have not yet contributed to greenhouse gas emission reductions.
Mitigation and energy, upstream and downstream value chain (Scope 3):
Recycled materials (upstream value chain):
To address Scope 3 emissions, Huhtamaki maintained close collaboration with
customers to enhance product development by increasing the share of recycled content in packaging. Progress is tracked
against circularity targets related to the use of renewable and recycled materials, as described in the section
Error!
Reference source not found.
. For example, in partnership with customers, Huhtamaki increased the use of mechanically
recycled plastics by over 2,000 tonnes and chemically recycled materials by 500 tonnes, resulting in an estimated reduction
of approximately 4,000 tCO
₂
e in greenhouse gas emissions.
Developing recycling systems (downstream value chain):
To address packaging end-of-life challenges, Huhtamaki has
engaged in global initiatives on promoting recycling and composting across the entire value chain, including industry
partners and policymakers. These collaborative initiatives related to circularity are described in more detail in the Circular
economy section.
Planned activities:
Directors’ Report and Financial Statements 2025 | 49
Mitigation and energy, own operations (Scope 1 + 2):
Use of renewable energy:
Huhtamaki plans to further increase the share of renewable electricity across its sites from 2026
onwards. One key initiative is the completion of a group captive special purpose vehicle (SPV) project for a site in India,
which is expected to provide approximately 50% of the site’s electricity needs from renewable sources. Generation is
anticipated to begin in the first half of 2026, with the initiative estimated to reduce greenhouse gas emissions by around
9,000 tCO
₂
e annually.
Energy efficiency:
Huhtamaki continues to improve energy efficiency across its sites from 2026 onwards.
Fuel switching:
Huhtamaki continues to explore fuel switching opportunities across its sites from 2026 onwards.
Electrification:
Huhtamaki continues to explore electrification opportunities across its sites from 2026 onwards.
Mitigation and energy, upstream and downstream value chain (Scope 3):
Recycled materials (upstream value chain):
Huhtamaki continues exploring opportunities to increase the use of Post-
Industrial Recycled (PIR) and Post-Consumer Recycled (PCR) materials to reduce greenhouse gas emissions from plastics.
Supplier engagement (upstream value chain):
Huhtamaki continues to actively collaborate with its suppliers to encourage
the adoption of science-based targets and to support their efforts in pursuing greenhouse gas emission reductions across
the value chain.
Developing recycling systems (downstream value chain):
Huhtamaki continues to collaborate with value chain partners to
ensure recycling and composting in the downstream value chain.
The quantitative estimated contributions of Scope 3 decarbonization levers have not yet been assessed.
Huhtamaki does not currently have significant operational or capital expenditures allocated for the implementation of the
defined climate-related mitigation or energy actions. However, smaller financial resources and other resources, such as
dedicated personnel from the Group, segments, and sites are designated to support the implementation efforts.
The Group’s access to funding is sufficient to ensure adequate financing resources to perform the defined mitigation
actions for Scope 1, 2, and 3 in all foreseeable circumstances (see more in Financial Statements Note 5.7 Management of
financial risks). The indicators published earlier in the Sustainability Statement under the EU Taxonomy relate to
Huhtamaki’s taxonomy-eligible business operations (manufacture of plastic packaging goods) and hence do not reconcile
with the development activities presented in this chapter, that are not considered part of the Group’s taxonomy-eligible
activities in their entirety.
Directors’ Report and Financial Statements 2025 | 50
Targets related to climate change mitigation
Target
Scope
2030 target
2024 (previously
reported)
2024
(restated)
2025
50.44 % reduction in absolute
Scope 1 and Scope 2
emissions by 2030 from 2022
base year
Base year: 2022
Baseline value: 676,705
tCO2eq
Own
operations
335,375
tCO2eq
1
461,537
tCO2eq
470,471
446,761
(-34.0 %)
25% reduction in absolute
Scope 3 emissions from
selected categories
3
from a
2022 base year
Base year: 2022
Baseline value: 2,317,585
tCO2eq
Own
operations,
upstream value
chain
1,738,189
tCO2eq
2
n/a
2,146,062
2,062,879
(-11.0 %)
1
REF 1.5C target value: 335,375 tCO2eq
2
REF 1,5C target value: 1,344,199 tCO2eq
3
Categories in Scope 3 target boundary: Cat 1: Purchased goods and services, Cat 3: Fuel- and energy-related activities, Cat 4: Upstream
transportation and distribution, Cat 5: Waste generated in operations, Cat 6: Business travel and Cat 7: Employee commuting. The target
boundary covers 68% of total Scope 3 emissions.
change mitigation
Huhtamaki has set science-based targets to reduce GHG emissions in its own operations and value chain, aligning with the
climate change mitigation goals outlined in its Group Environmental Policy. Huhtamaki updated its 2030 near-term
science-based emission reduction targets in 2025 and committed to setting a net-zero target.
The targets have been set together with representatives from business segments and key functions, reviewed by the
Global Executive Team, and approved by the Board. External stakeholder groups were not involved in the target setting
process. Furthermore, these targets were approved by the Science based Targets Initiative (SBTi) in 2025. The year 2022
was chosen as a base year as it is representative of Huhtamaki’s typical business activities in terms of production volumes.
The targets were set using SBTi’s absolute cross-sector contraction approach. Scope 1 and 2 combined emission reduction
target covers 99 % and Scope 3 targets cover 68 % of base year GHG emissions.
The metrics used were reviewed in 2025, resulting in changes to both the metrics and their underlying measurement
methodologies compared to those reported in 2024. These changes were considered when updating emission reduction
targets and historical climate metrics, ensuring that the comparability of emission reduction performance and targets has
not been compromised. Methodological details related to GHG emission metrics are presented under chapter “Gross
Scopes 1, 2, 3 and Total GHG emissions” on page 53.
Climate scenario analyses results, as described in the “Description of the processes to identify and assess material impacts,
risks and opportunities” section on page 33, have been considered when reviewing Huhtamaki’s decarbonization levers.
Huhtamaki does not have separate targets related to climate change adaptation, or physical or transition risk mitigation.
Scope 1 and 2 targets
Huhtamaki’s science-based near-term combined target for Scopes 1 and 2, that has been validated by the SBTi, is aligned
with the 1.5°C pathway.
The market-based calculation method is used to determine the Scope 2 GHG emissions, which are included in Huhtamaki’s
combined Scope 1 and 2 emission reduction target. Increasing the share of renewable energy is Huhtamaki’s main emission
reduction lever to achieve the Scope 1 and 2 emission reduction target, and the impact is seen in Scope 2 emission
reductions. Furthermore, enhancing energy efficiency is important for limiting emission growth in both Scope 1 and 2, even
as the business continues to expand. Improving energy efficiency and increasing the share of renewable energy helps
Directors’ Report and Financial Statements 2025 | 51
Huhtamaki adapt to climate transition risks, including increased energy and carbon costs. Adopting new technologies is not
anticipated to play a major role in meeting Huhtamaki’s near-term emission reduction target.
Performance against the Scope 1 and 2 mitigation targets is monitored and reported monthly, and is in line of what was
initially planned. In 2025, Huhtamaki reduced its emissions by increasing the use of renewable electricity in its own
operations. See details about realized emissions under “Gross Scopes 1, 2, 3 and Total GHG emissions” section.
Scope 3 targets
Huhtamaki is committed to a target to reduce absolute Scope 3 GHG emissions from purchased goods and services, fuel-
and energy-related activities, upstream transportation and distribution, waste generated in operations, business travel,
and employee commuting by 25.0% by 2030 from a 2022 base year. The Scope 3 categories included in the target
boundary covered 68% of total Scope 3 emissions in 2022.
The main levers to achieve this target are to increase the share of renewable and recycled materials in products as well as
to engage with suppliers that have set ambitious science-based targets. Achieving the target helps to reduce transition
risks related to increased carbon costs embedded in raw material costs. Huhtamaki has not yet quantitatively assessed the
potential impacts of the identified emission reduction levers on achieving its Scope 3 emission reduction targets. While a
comprehensive transition plan for meeting these Scope 3 targets is not yet in place, its development is scheduled for 2026.
Performance against the Scope 3 target is monitored and reported annually. Currently, progress towards this target is in
line with initial plans. The emission reductions have been achieved by reducing the use of fossil-based virgin raw materials.
Huhtamaki acknowledges the challenges related with measuring and reducing Scope 3 emissions, especially since the
emissions from purchased materials are calculated using industry average emission factors. Due to constraints in the
calculation methodology, Huhtamaki’s Scope 3 emissions are closely tied to production volume, with emissions fluctuating
in line with production changes. Despite these challenges, Huhtamaki identifies potential for emissions reduction through
decreasing the share of fossil-based virgin raw materials. Additionally, active engagement with suppliers to collect supplier-
specific emission factors is planned to help address calculation methodology challenges. These efforts are expected to aid
in achieving the established target.
See details about realized emissions under Gross Scopes 1, 2, 3 and Total GHG
emissions section on page 53.
Energy consumption and mix
Table 2. Energy consumption and mix
Energy consumption and mix
2024 (previously
reported)
2024 (restated)
2025
Total fossil energy consumption (MWh)
1,518,929
1,571,671
1,580,494
Fuel consumption from coal and coal
products
0
0
0
Fuel consumption from crude oil and
petroleum products
89,410
89,410
92,371
Fuel consumption from natural gas
969,814
1,015,595
1,032,432
Consumption of purchased or acquired
electricity, heat, steam, and cooling from
fossil sources
459,706
466,667
455,691
Fuel consumption from other fossil sources
0
0
0
Share of fossil sources in total energy
consumption
69.3 %
70.0%
69.1%
Directors’ Report and Financial Statements 2025 | 52
Total consumption from nuclear sources (MWh)
0
0
0
Total renewable energy consumption (MWh)
674,104
674,104
707,731
Fuel consumption from renewable sources,
including biomass
6,641
6,641
8,208
Consumption of purchased or acquired
electricity, heat, steam and cooling from
renewable sources
667,411
667,411
699,429
The consumption of self-generated
renewable electricity
52
52
93
Share of renewable sources in total energy
consumption
30.7 %
30.0%
30.9%
Total energy consumption (MWh)
2,193,033
2,245,775
2,288,225
Calculation methodology
Huhtamaki’s data on energy consumption and mix is presented in the accompanying table. As Huhtamaki operates in
manufacturing, which is considered a high-climate impact sector (NACE: C), a full breakdown of fossil energy sources is
provided. The consolidation scope contains all Huhtamaki manufacturing units, and the details are explained in the
“General information” chapter on page 17. The same perimeter is applied for reporting GHG Scopes 1 and 2 emissions. All
quantitative energy-related information is reported in mega-watt-hours (MWh) in net caloric value (lower heating value).
Huhtamaki’s activity data inventory encompasses all major fuels consumed in the production of heat, steam, electricity, and
cogeneration, including natural gas, diesel, liquefied petroleum gas (LPG), light fuel oil (LFO), and heavy fuel oil (HFO). Fuel
consumption in vehicles owned or controlled by Huhtamaki is deemed non-material, due to low volumes compared to
primary energy used in production processes (estimated <0.5% of total fuel consumption).
The purchased renewable energy disclosed in the table above comprises all energy for which the renewable origin can be
demonstrated. This includes energy obtained through contractual arrangements with suppliers, such as renewable power
purchase agreements or standardized green electricity tariffs, as well as energy supported by market instruments,
including Energy Attribute Certificates (EACs) such as Guarantees of Origin (GOs) or Renewable Energy Certificates
(RECs). Only renewable energy for which proof of origin is available, is included in the reported figures.
The data is collected from energy meters and invoices and is reported monthly at site level. Fuel consumption from crude
oil and petroleum products includes LPG, HFO, LFO, and diesel. All purchased heating, steam, and cooling is assumed to be
fossil-based. Feedstocks and fuels not combusted for energy purposes are excluded from the figures.
In 2025, Huhtamaki acquired a business of Zellwin Farms (Zellwin) with data collection commencing on May 1, 2025. In
accordance with Huhtamaki’s GHG emission target base year recalculation policy, and to ensure the integrity and
comparability of energy and greenhouse gas (GHG) emissions data over time, energy consumption data form Zellwin has
been retrospectively incorporated for the first quarter of 2025, the baseline year 2022 and 2024.
The measurement of the metrics presented in the E1 section is not validated by an external body.
Identified limitations
The separate collection of data on energy consumption from nuclear power sources and self-generated electricity began
in July 2024. Table 2. Energy consumption and mix presents the consumption of self-generated renewable electricity only
for the second half of the year.
Directors’ Report and Financial Statements 2025 | 53
Table 3. Energy intensity per net revenue
Energy intensity per net revenue
2024 (Previously
reported)
2024 (restated)
2025
%
Total energy consumption from activities in high
climate impact sectors per net revenue from
activities in high climate impact sectors (MWh / € [in
millions])
531.5
541.8
577.2
6.5 %
The net revenue (EUR 3964.5 million) used to calculate energy intensity differs from the net sales amount for the year
2025 (EUR 3960.2 million) as reported in the Consolidated Statement of Income (IFRS) on page 91 of the Financial
Statements. The reason for the difference is that the net sales of the Zellwin, acquired in 2025, have been added for the
full year 2024 and 2025 when calculating the energy intensity to ensure alignment with the GHG emissions calculation.
Huhtamaki operates in the manufacturing sector (NACE codes: C17 and C22), the energy consumption and revenue have
been included in full in the intensity calculation.
Gross Scopes 1, 2, 3 and Total GHG emissions
Table 4. Gross Scope 1, Scope 2, Scope 3 and total greenhouse gas (GHG) emissions in metric tons of CO2eq
Scope 1 GHG emissions
Base year
2022
2024
(previously
reported)
2024
(restated)
2025
%
2030
Gross Scope 1 GHG
emissions (tCO2eq)
233,483
218,431
228,314
232,580
1.9%
-
Percentage of Scope 1 GHG
emissions from regulated
emission trading schemes
-
25.7 %
29.9%
30.1%
0.7%
-
Scope 2 GHG emissions
Gross location-based Scope 2
GHG emissions (tCO2eq)
481,869
454,945
426,667
430,212
0.8%
-
Gross market-based Scope 2
GHG emissions (tCO2eq)
443,222
243,106
242,157
214,180
-11.6%
-
GHG emissions from own
operations, total
Total Scope 1 + market-based
Scope 2 emissions (tCO2eq)
676,705
461,537
470,471
446,761
-5.0%
335,37
5
Significant Scope 3 GHG
emissions
Gross indirect (Scope 3) GHG
emissions (tCO2eq)
3,349,806
3,134,000
3,218,403
3,194,990
-0.7%
-
1 Purchased goods and
services*
1,981,098
1,801,000
1,863,492
1,784,672
-4.2%
-
2 Capital goods
94,340
2,000
75,938
105,469
38.9%
-
3 Fuel and energy-related
Activities (not included in
Scope1 or Scope 2)*
142,204
153,000
105,015
100,967
-3.9%
-
4 Upstream transportation
and distribution*
129,823
102,000
118,762
121,483
2.3%
-
5 Waste generated in
operations*
23,263
36,000
18,897
18,458
-2.3%
-
6 Business traveling*
11,653
8,000
12,576
10,227
-18.7%
-
7 Employee commuting*
29,544
40,000
27,320
27,074
-0.9%
-
9 Downstream
transportation
67,997
51,000
61,170
62,800
2.7%
-
Directors’ Report and Financial Statements 2025 | 54
10 Processing of sold
products
301,796
280,506
317,141
13.1%
11 Use of sold products
53,892
53,908
0.0%
12 End-of-life treatment of
sold products
568,088
941,000
600,835
592,793
-1.3%
GHG emissions in Scope 3
target boundary*
Gross Scope 3 GHG
emissions (tCO2eq) in target
boundary
2,317,585
n/a
2,146,062
2,062,879
-3.9%
1,738,1
89
Total GHG emissions
Total GHG emissions
(location-based) (tCO2eq)
4,065,158
3,807,375
3,873,385
3,857,782
-0.4%
-
Total GHG emissions
(market-based) (tCO2eq)
4,026,511
3,595,537
3,688,874
3,641,751
-1.3%
-
*
Categories in Scope 3 target boundary:
Cat 1: Purchased goods and services, Cat 3: Fuel- and energy-related activities, Cat 4:
Upstream transportation and distribution, Cat 5: Waste generated in operations, Cat 6: Business travel and Cat 7: Employee
commuting. The target boundary covers 68% of total Scope 3 emissions.
Calculation methodology
Huhtamaki has considered the principles, requirements, and guidelines outlined in the GHG Protocol Corporate Standard
(2004 version). The total greenhouse gas (GHG) emissions reported include CO2, CH4, N2O, HFCs, PFCs, SF6, and NF3,
calculated in metric tons of CO2 equivalent (tCO2eq). Biogenic carbon (CO2) emissions are reported separately when
available (see Table 5. Additional disclosures).
In line with the Financial Statements and other disclosures in the Sustainability Statement, the consolidation principle
applied to activity data collection, GHG emission calculations, and reporting is based on financial control. Further details
are provided in the chapter “General information”.
As detailed in the Huhtamaki is committed to a target to reduce absolute Scope 3 GHG emissions from purchased goods
and services, fuel- and energy-related activities, upstream transportation and distribution, waste generated in operations,
business travel, and employee commuting by 25.0% by 2030 from a 2022 base year. The Scope 3 categories included in
the target boundary covered 68% of total Scope 3 emissions in 2022.
The main levers to achieve this target are to increase the share of renewable and recycled materials in products as well as
to engage with suppliers that have set ambitious science-based targets. Achieving the target helps to reduce transition
risks related to increased carbon costs embedded in raw material costs. Huhtamaki has not yet quantitatively assessed the
potential impacts of the identified emission reduction levers on achieving its Scope 3 emission reduction targets. While a
comprehensive transition plan for meeting these Scope 3 targets is not yet in place, its development is scheduled for 2026.
Performance against the Scope 3 target is monitored and reported annually. Currently, progress towards this target is in
line with initial plans. The emission reductions have been achieved by reducing the use of fossil-based virgin raw materials.
Huhtamaki acknowledges the challenges related with measuring and reducing Scope 3 emissions, especially since the
emissions from purchased materials are calculated using industry average emission factors. Due to constraints in the
calculation methodology, Huhtamaki’s Scope 3 emissions are closely tied to production volume, with emissions fluctuating
in line with production changes. Despite these challenges, Huhtamaki identifies potential for emissions reduction through
decreasing the share of fossil-based virgin raw materials. Additionally, active engagement with suppliers to collect supplier-
specific emission factors is planned to help address calculation methodology challenges. These efforts are expected to aid
in achieving the established target.
See details about realized emissions under Gross Scopes 1, 2, 3 and Total GHG
emissions section on page 53.
Energy consumption and mix section, Huhtamaki acquired the business of Zellwin Farms in 2025. The energy consumption
and GHG emissions of Zellwin have been retrospectively incorporated into the baseline year 2022 and 2024. No other
significant changes in the definition of what constitutes the reporting scope for Huhtamaki and its upstream and
downstream value chain have taken place in 2025.
Directors’ Report and Financial Statements 2025 | 55
In 2025, Huhtamaki made changes to the emission factor sources to ensure the emission factors being used are
continuously updated when new information becomes available. The selected emission factor sources are well known and
trusted. Additionally, Huhtamaki updated its Scope 3 materiality assessment, resulting in an expanded inventory scope.
Scope 1 and 2 GHG emissions calculation methodology
The primary and secondary energy data presented in the Huhtamaki is committed to a target to reduce absolute Scope 3
GHG emissions from purchased goods and services, fuel- and energy-related activities, upstream transportation and
distribution, waste generated in operations, business travel, and employee commuting by 25.0% by 2030 from a 2022 base
year. The Scope 3 categories included in the target boundary covered 68% of total Scope 3 emissions in 2022.
The main levers to achieve this target are to increase the share of renewable and recycled materials in products as well as
to engage with suppliers that have set ambitious science-based targets. Achieving the target helps to reduce transition
risks related to increased carbon costs embedded in raw material costs. Huhtamaki has not yet quantitatively assessed the
potential impacts of the identified emission reduction levers on achieving its Scope 3 emission reduction targets. While a
comprehensive transition plan for meeting these Scope 3 targets is not yet in place, its development is scheduled for 2026.
Performance against the Scope 3 target is monitored and reported annually. Currently, progress towards this target is in
line with initial plans. The emission reductions have been achieved by reducing the use of fossil-based virgin raw materials.
Huhtamaki acknowledges the challenges related with measuring and reducing Scope 3 emissions, especially since the
emissions from purchased materials are calculated using industry average emission factors. Due to constraints in the
calculation methodology, Huhtamaki’s Scope 3 emissions are closely tied to production volume, with emissions fluctuating
in line with production changes. Despite these challenges, Huhtamaki identifies potential for emissions reduction through
decreasing the share of fossil-based virgin raw materials. Additionally, active engagement with suppliers to collect supplier-
specific emission factors is planned to help address calculation methodology challenges. These efforts are expected to aid
in achieving the established target.
See details about realized emissions under Gross Scopes 1, 2, 3 and Total GHG
emissions section on page 53.
Energy consumption and mix section are applied in Scope 1 and Scope 2 GHG emission calculations. Actual primary and
secondary energy consumption data is prioritized in the emission calculations. The primary and secondary energy activity
data are multiplied by source-specific emission factors available in Huhtamaki’s sustainability reporting tool.
For Scope 1 emissions, default emission factors from Defra (v14.1, 10/2025) emission factorsare applied. No estimates or
bioenergy certificates are included in the calculations. Emissions from refrigerant leakages and fuels used in Group-owned
vehicles have been excluded from the GHG emissions inventory, as these sources have been assessed to be insignificant—
representing less than 2.2% of total Scope 1 emissions and 1.05% of combined Scope 1 and Scope 2 emissions.
Scope 2 emission calculations follow the Greenhouse Gas Protocol Scope 2 Guidance. Scope 2 GHG emissions from steam,
district heating and cooling are calculated using the emission factors from Sphera (MLC v18 (12/2025)). To calculate Scope
2 emissions from purchased electricity, two methods are used. The emission factors of the IEA (IEA static v5.0 (11/2025))
are used in calculating the location-based emissions. To calculate the market-based emissions, supplier-specific emission
factors are being used when those are available. Otherwise, the emission factors of residual mixes from AIB and EPA
(Residual Mixes v15 green-e 2024 (10/2025)) or IEA are used.
Scope 3 GHG emissions calculation methodology
Scope 3 emissions are reported in accordance with the GHG Protocol Corporate Accounting and Reporting Standard and
the GHG Protocol Corporate Value Chain (Scope 3) Accounting and Reporting Standard. The reporting covers GHG
emissions from the entire value chain, including both upstream and downstream activities.
In 2025, Huhtamaki updated its Scope 3 materiality assessment to determine the significance of each Scope 3 category. Of
the 15 categories evaluated, 11 were assessed as significant for Huhtamaki, while the remaining 4 were deemed
insignificant and excluded from Huhtamaki’s inventory boundary. The significant categories have been included in
calculations retrospectively, encompassing the 2022 base year and subsequent years.
Scope 3 GHG emissions are measured using activity data from activities within Huhtamaki’s upstream and downstream
value chain as well as estimates. Overall, 60% of emissions are calculated using primary activity data (for categories 1, 3
Directors’ Report and Financial Statements 2025 | 56
and 5). Zero percent of emissions are calculated using primary GHG emission data obtained from suppliers or other value
chain partners. Emission factors used are derived from Ecoinvent (3.5), Defra (v14.1) and the MLC (v18) databases.
•
Category 1:
Purchased goods and services
includes the cradle-to-gate emissions of purchased materials. The
calculation is based on actual material volumes measured in metric tons. The emissions are calculated using
average-data method based on MLC and Ecoinvent emission factors. Services and product purchases are excluded
from Scope 3 inventory boundary as insignificant. Share (%) of exclusions from total Scope 3 GHG emissions is
1.6%.
•
Category 2:
Capital goods
includes all upstream emissions from the production of capital goods purchased by
Huhtamaki. Emissions are calculated based on the average spend-based method using emission factors from
Exiobase.
•
Category 3:
Fuel- and energy-related activities not included in Scope 1 or Scope 2
includes upstream cradle-to-gate
emissions of purchased fuels and energy consumed by the reporting company. Emissions are calculated using
average-data method based on emission factors from Defra for fuel and MLC for energy related upstream
emissions.
•
Category 4:
Upstream transportation
includes Scope 1 and Scope 2 emissions from transportation and distribution
providers during the use of their vehicles and facilities. Emissions are calculated using data on actual transported
raw material volumes, and estimates for distances and the shares of transport modes. These estimates are made
at the business segment level and consolidated into Group figures. Emissions are calculated using the distance-
based method based on Defra’s well-to-wheel emission factors. The inventory includes inbound transportation of
purchased materials, including inter-factory transfers. All outbound transportation is assumed not to be paid by
Huhtamaki and is therefore accounted for under Category 9. Storage of purchased products in warehouses,
distribution centers, and retail facilities is not relevant, as Huhtamaki does not procure such services. Collecting
transportation service provider-specific emissions data has been identified as an area for future development.
•
Category 5:
Waste generated in operations
covers Scope 1 and 2 emissions arising from waste management
suppliers during the disposal or treatment of waste generated by Huhtamaki’s manufacturing operations.
Emissions are calculated using the average-data method, with emission factors sourced from Defra, Sphera, and
Ecoinvent. The calculation is based on primary data of waste volumes and applies a waste-type-specific approach,
accounting for both non-hazardous and hazardous waste streams. Specific waste material types (e.g., fiber and
plastics) are not reported separately. Wastewater treatment is excluded from the emissions inventory, as it
represents an insignificant portion of overall Scope 3 emissions (<0.02%).
•
Category 6:
Business travel
covers emissions resulting from the transportation of employees for business purposes
in vehicles owned or operated by third parties. The inventory includes emissions from air travel, which is identified
as the most emission-intensive mode of business travel. Passenger-kilometers for air travel are estimated based
on the average travel distance, the number of employees who travel, and the average number of trips per year.
Emissions are calculated using a distance-based method, applying emission factors with radiative forcing (RF)
sourced from Defra. Other modes of business travel are excluded as they are considered insignificant, given that
air travel—the most emission-intensive and predominant mode—accounts for only 0.3% of total Scope 3
emissions. The estimated impact of excluded modes is <0.01% of total Scope 3 emissions.
•
Category 7:
Employee commuting
covers emissions from employees commuting between their homes and
worksites. Emissions are calculated using a distance-based method and emission factors sourced from Defra. In
line with the precautionary principle, it is assumed all commuting is undertaken by car, and other transportation
modes are not included. Passenger-kilometers are estimated based on the number of employees, average
commuting distance per person, and average number of working days per year. Reductions in passenger-
kilometers due to remote work are estimated by assessing the proportion of remote working days.
•
Category 8:
Upstream leased assets
is assessed as insignificant for Huhtamaki and is therefore excluded from the
inventory boundary. Screening calculations indicate that emissions from leased cars and leased facilities (such as
offices and warehouses) account for less than 0.5% of total Scope 3 emissions. Additionally, this category is
Directors’ Report and Financial Statements 2025 | 57
considered immaterial for decision-making purposes, and collecting the necessary data would require
disproportionate effort.
•
Category 9:
Downstream transportation
includes emissions from the transportation and distribution of sold
products in vehicles and facilities not owned or controlled by Huhtamaki. Emissions are calculated using a
distance-based method with emission factors sourced from Defra. The calculation relies on primary data from
Huhtamaki’s production volume, combined with estimates for transport modes, modal shares, and average
distance to customers. All outbound transportation of sold products is assumed to be paid for by customers, and
thus is accounted for in Category 9. Emissions from retail and storage of sold products are excluded from the
inventory, as they represent less than 0.08% of total Scope 3 emissions. Furthermore, these activities are
considered immaterial for decision-making, and obtaining the required data would involve disproportionate effort.
•
Category 10:
Processing of sold products
covers emissions resulting from the processing of sold intermediate
products by third parties (e.g., manufacturers) after sale by Huhtamaki. The inventory includes emissions from
further processing of plastic films sold to customers. Emissions are calculated using the average-data method,
applying country-specific electricity emission factors. It is assumed that the intermediate products are processed
in the same countries where they are produced. Estimated energy consumption for processing is based on
Huhtamaki’s own production process data. Category 10 has been identified as material in Huhtamaki’s latest
Scope 3 materiality assessment.
•
Category 11:
Use of sold products
covers emissions arising from the use of goods and services sold by Huhtamaki.
The inventory includes direct use-phase emissions from industrial machines sold to customers, calculated based
on average annual fuel consumption, an average
product lifetime, and the quantity of machines sold. Estimated
energy use per machine is derived from Huhtamaki’s own production process data. Notably, these industrial
machines are not sold every year; sales occur irregularly, typically every 3 to 5 years, resulting in fluctuations in
annual units sold. Category 11 has been identified as material in Huhtamaki’s latest Scope 3 materiality
assessment.
•
Category 12:
End-of-life treatment of sold products
covers emissions from the disposal and treatment of
Huhtamaki’s products at the end of their useful life. The inventory includes the estimated distribution of end-of-
life treatment methods: percentage landfilled, incinerated, and recycled. Emissions are calculated using a waste-
type-specific, average-data method, applying treatment-specific emission factors sourced from Defra. The
calculation draws on primary data for production volumes, the estimated composition of product types (fiber,
plastic, and other materials), and the shares of treatment methods. To estimate the allocation to each treatment
option by product type, global averages from the literature (Global Waste Management Outlook 2024) are used.
•
Category 13:
Downstream leased assets
is assessed as not relevant as Huhtamaki does not own leased assets
operated by other entities in the reporting year.
•
Category 14:
Franchises
was assessed as not relevant as Huhtamaki had no franchising business in the reporting
year.
•
Category 15:
Investments
is assessed as not relevant as the emissions from investments made by Huhtamaki fall
under Scopes 1 and 2.
Identified limitations
As in previous years, the proportion of emissions covered by Emissions Trading System (ETS) is calculated by dividing the
total Scope 1 emissions from sites regulated under the ETS by the total Scope 1 emissions for the Group. As a result, a small
proportion of other Scope 1 emissions not regulated under the ETS are included in the Scope 1 emissions reported for the
ETS sites. For 2025, and retrospectively for 2024 figures, Scope 1 emissions covered under the UK Emissions Trading
Scheme (UK ETS) have also been included in addition to Scope 1 emissions covered by the EU Emissions Trading System
(EU ETS).
Directors’ Report and Financial Statements 2025 | 58
For Scope 2 emissions, due to the unavailability of market-based emission factors for steam, district heating, and cooling,
the disclosed market-based emissions are calculated using location-based emission factors.
For Scope 3 emissions, the indirect nature and diverse sources require the use of simplifications and estimations across
several categories. In 2025, 38% of emissions were calculated using estimated activity data, and 100% of emission factors
were based on industry averages. Huhtamaki recognizes the challenges in obtaining primary activity and emissions data
from value chain partners, resulting in a reliance on estimates that may affect data accuracy. Calculations are therefore
based on standardized assumptions and may not fully reflect the specific circumstances of Huhtamaki’s operations or value
chain. Moving forward, Huhtamaki intends to engage with suppliers to improve data quality and increase the use of primary
emission data.
Table 5. Additional disclosures
Biogenic emissions & contractual
instruments
2024 (previously
reported)
2024 (restated)
2025
%
Biogenic emissions of CO2 from the
combustion or bio-degradation of biomass
not included in Scope 1 (tCO2eq)
2,391
2,324
2,873
23.6%
Biogenic emissions of CO2 from the
combustion or bio-degradation of biomass
not included in Scope 2 (tCO2eq)
-
-
-
Biogenic emissions of CO2 from the
combustion or bio-degradation of biomass
not included in Scope 3 (tCO2eq)
-
-
-
Percentage of contractual instruments
from total purchased energy consumption,
Scope 2 calculation
67.0 %
66.6%
59.7%
-10.3%
Percentage of contractual instruments
bundled with attributes, Scope 2 calculation
(%)
75.2 %
33.8%*
47.7%
41.4%
Percentage of contractual instruments
under unbundled energy attribute claims,
Scope 2 calculation (%)
24.8 %
66.2%*
52.3%
-21.1%
Methodology
Scope 1 biogenic carbon dioxide (CO
₂
) emissions from biomass combustion have been calculated using emission factors
sourced from Defra. Percentages for contractual instruments have been determined based on MWh figures, with the total
usage rate of contractual instruments compared to the total amount of purchased energy (in MWh).
Identified limitations
The emission factors used for Scope 2 and Scope 3 calculations do not separate the percentage of biomass or biogenic CO
₂
emissions; therefore, these biogenic emissions have not been reported. The collection of contractual instrument use has
been initiated from July 2024 onwards. The 2024 data covers only metrics for the use of contractual instruments in the
fourth quarter.
Table 6. GHG intensity per net revenue
GHG intensity per net revenue
2024
(previously
reported)
2024
(restated)
2025
%
Total GHG emissions (location-based) per net
revenue (tCO2eq / € [in millions])
922.7
934.4
973.1
4.1 %
Directors’ Report and Financial Statements 2025 | 59
Total GHG emissions (market-based) per net
revenue (tCO2eq / € [in millions])
871.4
889.9
918.6
3.2 %
The net revenue (EUR 3964.5 million) used to calculate energy intensity differs from the net sales amount for the year
2025 (EUR 3960.2 million) as reported in the Consolidated Statement of Income (IFRS) on page 91 of the Financial
Statements. The reason behind the difference is that the net sales of the business of Zellwin Farms acquired in 2025 have
been added for the full year 2024 and 2025 when calculating the GHG intensity to ensure alignment with the GHG
emissions calculation.
Internal carbon pricing
Huhtamaki does not apply internal carbon pricing schemes.
Directors’ Report and Financial Statements 2025 | 60
ESRS E5 Resource Use and Circular Economy
Material impacts and opportunities related to resource use and circular economy
Material impact or
opportunity
Description
Applicability
Resource inflows
Negative
impact
Raw material
use
Huhtamaki impacts natural resources through the use of raw materials (e.g.,
paperboard and paper, plastic, chemicals) for manufacturing of its
packaging.
Upstream
value chain
Resource outflows
Risk
Changes is
regulation
Possible changes in packaging and waste management regulations may
expose Huhtamaki to negative financial impact. For example, extended
producer responsibility may lead to an increase in costs.
Value chain &
own
operations
Waste, waste management
Negative
impact
Waste
generation
Huhtamaki’s operations in the packaging sector can lead to impacts on
waste generation in value chain.
Downstream
value chain
Positive
impact
Waste
reduction
Transitioning to circular business models in the packaging industry can
reduce waste by prioritizing the circularity of materials, and conserve
resources.
Value chain &
own
operations
Entity specific
Positive
impact
Food waste
reduction
Huhtamaki’s packaging solutions help reduce food waste by extending the
shelf life of food products.
Downstream
value chain
Opportunity
Circular
business
models
Circular business models in the packaging industry can lead to financial
benefits for Huhtamaki by meeting demand and need for sustainable
packaging solutions, reducing reliance on virgin materials, and harnessing
efficiencies in resource utilization. New product concepts could be created,
and innovation can contribute to developing more sustainable products,
creating business opportunities for Huhtamaki. This can help in establishing
Huhtamaki as a leader in sustainable packaging.
Value chain &
own
operations
Policies related to resource use and circular economy
Huhtamaki addresses the management of its material impacts and opportunities related to resource use and circular
economy in the Group Environmental Policy, Code of Conduct for Huhtamaki Suppliers, and the “Design principles for
circularity in our products” guideline (“Design Principles”). According to these documents, Huhtamaki is committed to
addressing resource use and circularity through different stages of product life across the value chain.
The key commitments outlined in the Group Environmental Policy address all identified negative impacts of resource
inflows and outflows. Specifically, these commitments include designing for circularity, minimizing waste in own
production, maximizing recycling of production waste and working together with customers and stakeholders to find
solutions to develop waste management solutions that increase the actual recycling and composting rates of products. The
Code of Conduct for Huhtamaki Suppliers explicitly requires suppliers to make efforts to reduce the environmental
impacts of their operations and safeguard natural resources, with a particular focus on raw materials and waste
management. Additionally, the code sets expectations for suppliers to comply with all applicable laws, especially those
concerning air emissions, water use and discharge, and waste disposal. These requirements address material risks
associated with raw material sourcing and waste management and ensure that dependencies on natural resources are
managed sustainably.
Directors’ Report and Financial Statements 2025 | 61
The circularity and technical capabilities of Huhtamaki’s products significantly depend on design decisions. These decisions
influence material selection, product structure, and product end-of-life management. Circularity-focused design principles
are described in Huhtamaki’s Design Principles guideline. These principles are aligned with the Design for Recyclability
guidelines developed for plastic packaging by RecyClass—a cross-industry initiative facilitating the transition toward a
circular plastic future—and those developed by 4evergreen for fiber-based packaging, a cross-industry alliance advancing
the sustainability of fiber-based packaging. Through these Design Principles, the aim is to design for circularity that
supports the capitalization on related business opportunities, improves the end-of-life management of products, and
enhances waste management within direct operations, all of which have been identified as material impacts for Huhtamaki.
The Group’s packaging solutions' ability to reduce food waste by extending the shelf life of food products is also driven by
these design decisions.
Huhtamaki applies the waste hierarchy in its principles to address waste management and circularity, with the primary
focus being on waste prevention as the first option, followed by preparing for reuse, recycling, other recovery, and as a final
option, disposal. This approach is also supported by Huhtamaki’s resource use and circular economy-related targets, which
are outlined in the Group Environmental Policy and reinforced by the Design Principles. The targets are presented in more
detail in the “Targets related to resource use and circular economy” section on page 62.
For its sourcing of fiber based raw materials, Huhtamaki is committed to zero deforestation and conversion in its virgin
fiber supply chain. This is done through sourcing of certified or recycled fiber and developing traceability systems are in
place to track and monitor the origin of forest-based materials. The definition of recycled fiber includes both post-
consumer and post-industrial recycled paper and paperboard. To classify fiber as being from certified sources, it must be
Forest Stewardship Council® (FSC® C-203237), PEFC (Programme for the Endorsement of Forest Certification,
PEFC/02-44-55), or SFI® (Sustainable Forestry Initiative) certified.
Design Principles apply to all Huhtamaki business segments globally, and are approved by Huhtamaki’s Global Executive
Team, which is also accountable for overseeing their implementation. Design Principles are made available to all interested
parties through Huhtamaki’s website. See more detailed description of the Group Environmental Policy and Code of
Conduct for Huhtamaki Suppliers and their implementation in “Policies related to climate change mitigation” section on
page 47.
Actions related to resource use and circular economy
Huhtamaki is committed to promoting circularity and the efficient use of resources in product design and raw material
sourcing as well as working together with value chain partners to develop better waste reduction and management
practices, both regarding its own operations and product end-of-life.
Actions on product design and raw material sourcing
In 2025, Huhtamaki focused on several initiatives related to resource use and circularity improvements in product design.
Through continuous and ongoing collaboration on product development with customers, efforts were taken to increase
the share of renewable or recycled content in its packaging solutions. Huhtamaki achieved a 3.8% increase to 67.9% (2024:
65.4%) in the use of renewable and recycled material as compared to 2024. The Group’s rough molded solutions continue
to utilize recycled paper waste as raw material. Additionally, multiple projects are undertaken to reduce and optimize the
usage of raw materials without compromising functionality and quality.
Huhtamaki also launched new solutions, for example in the mono-material recyclable flexible packaging, even for sensitive
packaging formats such as hair color, pet food and instant food. Another example of innovation success is the development
of recyclable paper cups and lids with less than 10% plastic content for FMCG applications like dairy and confectionery
products.
Design principles for circularity to increase the share of recyclable and compostable packaging are continuously applied in
all aspects of product innovation.
Additionally, certifications were utilized to promote responsible material sourcing, particularly in the case of virgin fiber
materials and aluminum. For fiber-based packaging where the raw material must be virgin to meet the applicable product
safety requirements, FSC® C-203237, PEFC (PEFC/02-44-55) and SFI® certified materials were sourced, ensuring
traceability and control over sustainability aspects. In addition to fiber materials, ASI (Aluminium Stewardship Initiative)
certifications were used in the sourcing of aluminum.
Directors’ Report and Financial Statements 2025 | 62
Actions on own operations
Huhtamaki has implemented a World Class Operations program across all its sites to improve operational efficiencies,
including focused projects on reducing waste generated in production. Annual targets on waste reduction are undertaken
by each site, and projects are identified to achieve them. Periodic governance ensures progress on such projects.
To improve operational waste management, Huhtamaki’s sites established local partnerships with waste management
operators to increase the share of non-hazardous waste directed to recycling. Huhtamaki has also made good progress on
diverting operational waste away from landfills. Forty sites have achieved zero waste to landfill. An example of such an
initiative is the partnership that the Ras al Khaimah factory developed with an advanced material recovery partner to divert
all waste to recycling and reuse.
Actions on end-of-life treatment of products
Huhtamaki collaborated with value chain partners to improve recycling and composting in the downstream value chain.
Some examples of these include The Cup Collective which is a commercial initiative that brings together an alliance of like-
minded industry-leading organizations to meet the at-scale recycling challenge of single-use paper cups.
The partnership between Huhtamaki and Sporting Kansas City, a US National Soccer League club, continued with an aim
to reduce the stadium’s environmental footprint through improved waste management. The sponsorship began in 2023 to
help divert waste from the landfill by assisting with compostable and recyclable packaging solutions. In the 2025 season,
59% of food and packaging waste was diverted from landfill. This demonstration is important in helping Huhtamaki and
other customers understand consumer behavior in all elements of the circular economy.
Huhtamaki continues to meet minimum regulatory requirements under Extended Producer Responsibility (EPR)
regulations that may be applicable in the regions that it operates in. Huhtamaki teams globally are undertaking significant
efforts to ensure that Huhtamaki maintains this position and continues to work with customers to support them in meeting
their EPR requirements as well.
Huhtamaki partnered with Slush, one of world’s leading startup events held in Finland, to elevate sustainability at the event
by setting a closed-loop recycling system for cups. Huhtamaki supplied recyclable fiber cups, lids, and other food containers
and ensured these materials were collected in dedicated bins throughout the venue. By partnering with a local recycler,
Huhtamaki helped transform the used packaging items into new packaging solutions, showcasing the practical potential
and scalability of sustainable practices. This approach not only supports the circularity of fiber materials but also serves as
a model for sustainable event management.
Although the Group has taken the aforementioned actions to mitigate the identified negative impacts, it has not yet
identified the specific individuals or groups who are actually harmed by its material impacts. As a result, the Group has no
information to disclose on actions taken to provide for, cooperate in, or support the provision of remedies for those
affected.
All activities related to resource use and circularity are conducted on a continuous basis and are expected to continue in
the short- and medium-term. Their scope and direction are guided by Huhtamaki’s strategy, customer needs, and
regulatory requirements. Actions are expected to promote circularity in Huhtamaki’s processes and value chain, and to
support the Group’s strategy of becoming the first choice in sustainable packaging solutions. These actions specifically
focus on ensuring that the materials used are chosen consciously and that products can contribute to circularity after their
intended use.
Huhtamaki does not currently have significant operational or capital expenditures allocated for the implementation of
defined resource use and circular economy-related actions. However, financial resources are reserved in annual budgets
and three-year plans along with dedicated Group and segment personnel to support implementation.
Resource use and circular economy is a strategic lever for Huhtamaki, and opportunities for future expenditures towards
circular economy are assessed on a continuous basis, in line with customer needs.
While the targets and metrics depict the Huhtamaki ambition for 2030, the Group partners closely with customers to
develop solutions on circularity, and that is expected to develop continuously.
Targets related to resource use and circular economy
Directors’ Report and Financial Statements 2025 | 63
Table 7: Targets related to resource use and circularity
Target
Scope
2024
2025
%
Over
80%
renewable
or
recycled materials by 2030
Base year: 2020
Baseline value: 67.3 %
Upstream value
chain
65.4 %
67.9%
3.8%
100% of products designed
to be recyclable,
compostable, or reusable by
2030
Base year: 2020
Baseline value: 70.1 %
Own operations
72.0 %*
70.1 %
- 2,6%
Over
90%
of
the
non-
hazardous
waste
from
production
will
be
either
recycled or composted by
2030
Base year: 2020
Baseline value: 70.1 %
Own operations
81.6 %
84.6%
3.7%
0%
of
waste
sent
to
landfill by 2030
Base year: 2020
Baseline value: 19.7 %
Own operations
5.5 %
4.7%
-14.5%
* Any claim or classification is a general statement and does not imply that a product can be recycled or composted currently everywhere globally. The
ability to be recycled or composted will depend on the specificities of the recycling programs that consumers or other stakeholders have access to in each
market or geography. As such, the statement does not constitute a recyclability or compostability claim according to ISO 14021, the FTC Green Guides,
the ICC guidance, or any other national, state or local law, regulation or standard. Further information about compostability or recyclability for specific
products, markets or geographies shall be obtained. Independent expert legal advice should be considered before making composting or recyclability
claims in specific markets or geographies or for any specific product.
Huhtamaki’s targets for resource use and circular economy support meeting the related commitments outlined in the
section of ‘Resource use and Circular Economy’ in the Group Environmental Policy. These targets have been selected for
monitoring as they address resource use and circular economy topics identified as material to Huhtamaki, helping to track
progress toward the ambition of the Group’s 2030 strategy.
The geographical scope of all targets is global. Performance against the targets is collected monthly from manufacturing
sites, except for the target of designing all products to be recyclable, compostable, or reusable, which is reported on an
annual basis. Huhtamaki adheres to widely accepted definitions for renewable and recycled materials, as well as for
distinguishing between hazardous and non-hazardous waste streams. The target of products designed to be recyclable,
compostable, or reusable is calculated based on revenue, whereas all other targets are calculated on a mass basis.
Huhtamaki has developed technical criteria to assess the recyclability, compostability, and reusability of its products. These
technical criteria follow the principles of industry guidelines provided by RecyClass for plastic packaging and by
4evergreen for fiber-based packaging. The criteria specify the material composition requirements for products to be
considered recyclable or compostable. Typical examples of products that qualify for this target include molded fiber,
paperboard, and paper products that have been sufficiently tested according to established methodologies, as well as
blueloop™ flexible packaging solutions.
The targets are not based on legislation but are voluntarily set by Huhtamaki. However, all targets can be considered to
support, for example, the objectives of the EU's Circular Economy Actions Plan. Due to the nature of the targets, it cannot
be concluded whether these are based on scientific evidence. The targets have been set together with representatives
from the business segments and key functions, reviewed by the Global Executive Team, and approved by the Board.
External stakeholder groups were not involved in the target setting process. There have not been any significant changes
in the methodologies of these targets within the reporting year.
Directors’ Report and Financial Statements 2025 | 64
Huhtamaki has made good progress towards these targets since the base year 2020 The company has seen a steady
improvement on most of the targets in 2025. The main exception relates to the target on percentage of products designed
to be recyclable, compostable or reusable. The unfavorable development on this target is related to the adverse change in
sales mix. Huhtamaki’s targets comprehensively address various aspects of promoting circularity. The target on renewable
or recycled materials specifically relates to promoting circular material use rate, sustainable sourcing and use of renewable
sources, and minimizing virgin raw material use. Consequently, this target also positively supports efforts to combat
biodiversity loss caused by unsustainable sourcing practices. The target on products designed to be recyclable,
compostable or reusable specifically addresses circular product design. The two other targets, recycling of non-hazardous
waste and minimizing waste sent to landfill relate to waste management. A 14.5% decrease in waste sent to landfill was
achieved in 2025 which is a significant development.
Regarding the layers of the waste hierarchy referred to in the figure below, the targets of the use of renewable or recycled
material, products designed to be recyclable, compostable or reusable, and recycling or composting non-hazardous waste
relate to the layer of recycling. The last target of sending no waste to landfill pertains to recycling and other recovery,
depending on where the waste is directed instead of landfilling
Figure 2. Allocation of Huhtamaki’s resource use and circularity-related targets across different waste hierarchy levels and
circularity levers.
Huhtamaki intends to refresh and update its metrics and targets relating to resource use and circular economy during
2026. The intent behind this is to integrate recent developments in the industry and the needs of the business that have
evolved since 2020, when the targets were first set up.
Directors’ Report and Financial Statements 2025 | 65
Resource inflows
Table 8. Resource inflows
Materials used in operations
2024
2025
%
Overall total weight of products and technical
and biological materials used (t)
1,346,617
1,355,659
0.7%
Percentage of biological materials and
packaging that is sustainably sourced
29.5 %
31.3%
6.1%
The absolute weight of recycled or secondary
materials used to manufacture products and
services, including packaging (t)
392,717
402,664
2.5%
Percentage of recycled or secondary materials
29.2 %
29.7%
1.8%
Calculation methodologies
The resource inflows outlined in the table above
Error! Reference source not found.
are derived from purchase data
sourced from sites' ERP systems and reflect actual invoiced figures. For the percentage calculations of biological and
secondary or recycled materials used, the denominator is the total weight of products and materials reported.
The overall total weight of products and technical and biological materials used includes all Huhtamaki’s raw material use,
including production and maintenance chemicals, fiber materials, plastics, metals, and packaging materials. For the
calculation of percentage of biological materials, Huhtamaki defines ‘sustainably sourced’ as all virgin fiber materials from
sustainably managed forests, certified by Forest Stewardship Council® (FSC® C-203237), the Programme for the
Endorsement of Forest Certification (PEFC/02-44-55), Sustainable Forestry Initiative (SFI®) or other comparable and
reputable certification schemes. Recycled components include post-consumer (i.e., recycled paper from households) and
post-industrial (i.e., recycled paper from industry) fiber.
While Huhtamaki does not have use of water in other production technologies, the manufacture of molded fiber products,
especially rough molded fiber products, needs water as part of the production process to convert recycled and wastepaper
into paper pulp which is used further for production. All manufacturing sites have water management plans with
consumption of water being monitored across the Group. While treatment and disposal requirements are maintained as
per local regulations everywhere, the focus has been in reduction of consumption and efficient use in molded fiber
production sites.
Huhtamaki has implemented water recirculation and recycling systems where feasible. Process water undergoes
purification either through its own treatment plants or through municipal facilities before discharge. As a result, the impact
of the operations on the downstream water quality is negligible or very limited. Non-process water is treated as per
regulatory requirements or safely released into the sewage network where feasible. This ensures that water quality meets
local regulations before discharge. Huhtamaki also monitors emerging materials and chemicals, engages with stakeholders
in chemistry-related forums, and aligns with the EU Chemical Strategy for Sustainability, focusing on zero water pollution.
Huhtamaki is in the process of developing time bound and outcome-oriented targets for relevant technologies in 2026.
The measurement of the metrics is not validated by an external body
Identified limitations:
Regarding the used packaging materials, only the share of PEFC-certified (PEFC/02-44-55) materials is included to avoid
double counting, as some packaging materials are certified by multiple schemes. PEFC is the most widely used certification
scheme for packaging materials at Huhtamaki.
Directors’ Report and Financial Statements 2025 | 66
Resource outflows
Table 9. Waste
Waste
2024
2025
%
Total waste generated (t)
206,835
214,210
3.6%
The total amount of hazardous waste by weight
diverted from disposal (t)
11,561
11,811
2.2%
via preparation for reuse
38
21
-45.5%
via recycling
11,523
11,790
2.3%
through other recovery or disposal operations
0
0
0.0%
The total amount of non-hazardous waste by
weight diverted from disposal (t)
155,574
167,061
7.4%
via preparation for reuse
1,764
2,447
38.7%
via recycling
153,811
164,614
7.0%
through other recovery or disposal operations
0
0
0.0%
The total amount of hazardous waste by weight
directed to disposal (t)
4,691
4,882
4.1%
via incineration
4,497
4,659
3.6%
via landfilling
194
223
14.8%
The total amount of non-hazardous waste by
weight directed to disposal (t)
35,009
30,455
-13.0%
via incineration
23,770
20,635
-13.2%
via landfilling
11,240
9,820
-12.6%
Total amount of non-recycled waste (t)
39,700
35,338
-11.0%
Percentage of non-recycled waste
19.2 %
16.5%
-14.1%
Total amount of hazardous waste generated (t)
16,252
16,693
2.7%
Calculation methodologies
Huhtamaki’s outflow waste streams, as shown in the table above
Error! Reference source not found.
, are divided into two
main categories, non-hazardous and hazardous waste. These categories include both process waste and maintenance
waste. The composition of process waste includes materials such as paperboard, plastic, aluminum, wood, and cardboard.
Maintenance waste comprises chemicals, used oil and other redundant machine parts, including e-waste. The disclosed
waste volumes are based on actual measurements, with data obtained from various sources such as invoices, weighbridge
slips (load weighting), and the waste management system, depending on site’s technology and processes. The target for
products designed to be recyclable, compostable, or reusable provides information on Huhtamaki's products' contribution
to circularity. The expected durability of products is not reported, as this data is not material for Huhtamaki’s packaging
solutions.
The measurement of the metrics is not validated by an external body.
Identified limitations
As Huhtamaki explores the use of different raw materials, such as bio-based plastics, new waste streams have emerged.
These new waste streams are not fully aligned with current reporting guidelines and, as a result, are not consistently
reported as part of the total waste volumes at some operational sites.
Directors’ Report and Financial Statements 2025 | 67
Social information
ESRS S1 Own workforce
Material impacts and risks related to own workforce
Material impact or risk
Description
Applicability
Working conditions
Negative
impact
Health and safety
Neglecting workplace safety can threaten health, increase accidents, and
lead to absences or turnover. Own workforce in production may be exposed
to various chemicals in specific parts of the processes. Chemical safety is also
identified as a material topic for Huhtamaki's sector.
Own
operations
Risk
Health and safety
Financial risk deriving from fines and reputational damage if there are major
health and safety incidents. There is a risk of employees facing legal
consequences and operations being halted. The potential negative financial
impact is decreased sales and increased costs.
Own
operations
Entity specific
Risk
Financial risk
from shortage of
skilled workforce
The shortage of skilled workforce and talent may pose challenges in
resourcing the production lines, potentially leading to delays in
manufacturing processes. While this financial risk may initially manifest on
local or regional levels, it could escalate into a global issue, thereby
increasing associated financial risks.
Own
operations
The material impacts, risks, and opportunities related to Huhtamaki’s own workforce have been identified in the double
materiality assessment, which is described in detail in the “Description of the processes to identify and assess material
impacts, risks and opportunities” section starting on page 33. Huhtamaki’s global transformation journey is powered by
systematic development of strategic capabilities and commitment to improving safety while empowering talent to succeed.
The material topics for Huhtamaki’s own workforce are closely connected with the Group’s 2030 strategy.
The actual impacts on own workforce are linked to Huhtamaki’s strategic ambition to offer the most engaging, motivating,
and safe workplace for its employees. The types of employees who are potentially subject to the material impacts include
Huhtamaki’s own employees as well as contingent workers provided by third-party undertakings. Huhtamaki operates
globally in multiple regions, including areas where availability of skilled workforce or workplace safety is not necessarily
always assured. No significant risks of forced, compulsory, or child labor have been identified based on operations type or
geographic location.
To achieve strategic ambitions and enhance efficiency and productivity, a talented workforce is essential. Actions for talent
development and training opportunities are planned accordingly to ensure that relevant capabilities and skills are in place
to reach the strategic ambitions. The risk of the availability of skilled workforce is mainly localized, and thus the impact on
Huhtamaki’s operations varies. The main factors contributing to increased risk are the remote locations of certain sites,
which affect the overall availability of skilled workers, and the competition for skilled labor in other areas. With targeted
actions, Huhtamaki can better mitigate the potential risk of a shortage of skilled workforce, thereby reducing financial risks.
Safety is fundamental to Huhtamaki’s operations, and as health and safety incidents can lead to significant impacts and
financial risks, improving safety performance represents one of Huhtamaki’s most important strategic priorities. The health
and safety impacts are systematically connected to Huhtamaki’s operations with the aim to control all risks within its
manufacturing processes that could negatively impact its workforce. Huhtamaki is committed to systematically and
effectively managing identified health and safety risks, including chemical safety, to ensure a safe workplace regardless of
geographical location. By adhering to local legislation and internal policies and procedures, Huhtamaki strives to maintain
high standards of safety and well-being to enable a safe and secure working environment for its people.
Directors’ Report and Financial Statements 2025 | 68
Policies related to own workforce
Huhtamaki is committed to managing the material impacts, risks, and opportunities for all employee groups within its
workforce through Group level policies and practices that focus on well-being, development, and safety. The documents
outline the principles and expectations for consistency in employment, working conditions as well as occupational health
and safety across the organization. The documents are available for Huhtamaki’s own workforce on Huhtamaki intranet,
and everyone is expected to be informed of these policies and act in accordance with them. Key documents are also
available to other external stakeholders on the Huhtamaki website.
Document
Key content
Scope
Accountability for
implementation
Group Human Rights
Policy
Huhtamaki’s commitment to respect human
rights within its own organization and its
value chain
Own workforce
Workers in the value chain
Other external stakeholders
GET
Code of Conduct
Fundamental principles for business
conduct and ways of working at Huhtamaki
Own employees
Board, GET
Code of Conduct for
Huhtamaki Suppliers
Minimum ethical, legal, environmental, and
social standards for Huhtamaki’s business
partners
Contingent workers
Workers in the value chain
GET
Group Speak Up and
Investigations Policy
Principles for speaking up and investigating
and addressing suspected or observed
violations or instances of non-compliance
Own workforce
Workers in the value chain
Other external stakeholders
GET
Global Employment
Guidelines
Guiding principles in employment
Own workforce
GET
Huhtamaki Working
Conditions
Requirements
Framework to provide fair, safe, and good
working conditions in all Huhtamaki sites
Own workforce
GET
Group Occupational
Health and Safety
(OHS) Policy
Statement
Principles on safety, well-being, and risk
mitigation in line with industry and other
external requirements
Own workforce
GET
Global Health and
Safety Working
Conditions Overview
Framework to establish minimum
requirements, fair, safe, and good working
conditions in all Huhtamaki sites
Own workforce
Workers in the value chain
GET
Recruitment Policy
and Guidelines
Recruitment principles, roles, and
guidelines
Own workforce
GET
Group Diversity,
Equity and Inclusion
Guiding Principles
Commitment to fostering a diverse,
equitable, and inclusive work environment
Own workforce
Workers in the value chain
Other external stakeholders
GET
The policies and guidelines are implemented through day-to-day leadership with the support of the Human Resources (HR)
organization at global, segment, and local level to ensure consistent employment practices and experience across
Huhtamaki. Additionally, a mandatory Code of Conduct training is provided annually for every employee. To enhance
awareness of global policies and guidelines, news and articles are shared through targeted newsletters for managers and
HR, as well as through Huhtamaki intranet articles available for everyone in the organization.
Human rights policy commitments
Huhtamaki is committed to respecting human and labor rights across all its operations. The Group Human Rights Policy
expresses the support for internationally recognized principles and frameworks of human rights such as the International
Bill of Human Rights and the ILO Declaration on Fundamental Principles and Rights at Work. The policy also states
Huhtamaki’s commitment to continuously improving its human rights due diligence processes in alignment with the United
Nations Guiding Principles on Business and Human Rights and the OECD Guidelines for Multinational Enterprises on
Responsible Business Conduct.
The Group Human Rights Policy outlines a dedication to treating everyone with dignity and respect, ensuring fair working
conditions, and prohibiting discrimination and any form of trafficked labor, forced labor or child labor in its own workforce
Directors’ Report and Financial Statements 2025 | 69
— and an expectation that Huhtamaki’s suppliers and other business partners do the same. The Global Employment
Guidelines and Working Condition Requirements further emphasize Huhtamaki's stance on these topics for its own
workforce. The Code of Conduct for Huhtamaki Suppliers is guided by the ILO standards, with expectations related to
health and safety of workers and commitment to not using forced, trafficked, or child labor.
Huhtamaki’s measures to provide grievance mechanisms and appropriate remedial actions if violations are identified (see
“Processes to remediate negative impacts and channels for own workers to raise concerns” on page 70). Huhtamaki’s
Group Human Rights Policy recognizes the importance of considering potentially vulnerable and marginalized groups, such
as migrant workers, and Huhtamaki commits to efforts to consider the unique challenges faced by these groups and to
ensure their rights and well-being are respected.
Promoting equal opportunities and preventing discrimination
Huhtamaki has implemented several policies aimed at eliminating discrimination and harassment, while promoting equal
opportunities. The Group Human Rights Policy, Huhtamaki Code of Conduct, as well as Huhtamaki Working Conditions
Requirements outline Huhtamaki’s commitment to diversity and equal employment opportunities. There is also emphasis
on treating everyone with dignity and respect, with no toleration of discrimination in any employment decisions during the
employment lifecycle. Disrespectful or inappropriate behavior, unfair treatment, or retaliation of any kind is prohibited.
The Global Employment Guidelines outline specifically how the prevention of harassment is to be applied to local policies.
All Huhtamaki locations are expected to have appropriate local policies or practices to enforce these principles within the
framework of local legislation. Huhtamaki’s commitment to develop its people at all levels of the organization is specified
in the Global Employment Guidelines.
The Group’s Recruitment Policy and Guidelines specify that all qualified applicants receive consideration for employment
without discrimination based on age, race, gender, color, religion, national origin, sexual orientation, gender identity,
veteran status, disability, or any other protected category. Huhtamaki’s commitment to advancing well-being and
appropriate treatment of its own workforce is stated in the Group Diversity, Equity, and Inclusion Guiding Principles.
Managing workplace safety
The Group Occupational Health and Safety (OHS) Policy Statement and Global Health and Safety Working Conditions
Overview outline Huhtamaki’s commitment to providing a safe, healthy and secure workplace for its people, as well as its
means to mitigate, reduce and prevent workplace accidents while striving for its operations to comply with the highest
available standards. The health and safety management systems cover all activities and Huhtamaki’s own workforce, as
well as contractors and visitors at Huhtamaki premises. The management systems and Global Health and Safety Working
Conditions Overview are constructed based on ISO 45001 standards and are designed to ensure that all sites comply with
or exceed local regulations and Huhtamaki’s internal requirements. Non-conformances and gaps are regularly monitored,
and the related actions are put in place to prevent recurrence. Huhtamaki's commitment to adhere to applicable chemical-
related legislation and the aim to minimize the consumption of chemicals in production is specified in the Group
Environmental Policy, described in “Policies related to climate change mitigation” section on page 47.
Processes for engaging with own workers and workers’ representatives about impacts
Huhtamaki is committed to engaging with people in its own workforce, with the aim of establishing open two-way dialogue
and feedback mechanisms to continuously improve operations together. This commitment extends to all locations,
including those where legal restrictions to forming and/or joining labor unions exist. Engagement with Huhtamaki’s own
employees as well as employee representatives occurs both directly and indirectly with the parties. The transition to a
sustainable economy within Huhtamaki's operations (see further details in chapter Huhtamaki strategy and sustainability
on page 25) may also affect employees, such as through the need for training and upskilling. Existing dialogue mechanisms
support in engagement in these activities.
In Europe, the European Works Council (EWC) unites Huhtamaki's administrative body members and elected EWC
representatives from all Huhtamaki sites once a year. The EWC is hosted by Executive Vice President HR & Safety.
Additionally, a quarterly meeting with the EWC Steering Committee is organized to discuss topical matters which are
jointly decided between the parties.
Directors’ Report and Financial Statements 2025 | 70
For Huhtamaki’s own employees, continuous dialogue is enabled through a quarterly global management meeting led by
the President and CEO, and quarterly townhall meetings within business segments and functions hosted by the respective
Business Presidents and functional Executive Vice Presidents. Huhtamaki’s strategy, priorities, business plans, and
performance are shared on a regular basis by the respective management, and information is expected to be cascaded
down in the organization. At a local level, roundtable and focus group discussions are organized at sites on an as-needed
basis to enable dialogue and follow-up of agreed improvement and development actions. The effectiveness of the
engagement and dialogue mechanisms are measured by providing opportunities to ask questions and give feedback during
the meetings. At sites where Huhtamaki has recognized unions, more formal regular meetings are organized to discuss
working conditions, grievances, and working practices, and to conduct statutory negotiations when applicable.
To foster effective consultation and engagement on health and safety matters, various activities are conducted at
Huhtamaki sites. Through the Safety Pillar program, Huhtamaki aims to establish Safety Pillar teams in every site that will
act as safety committees, consisting of own employees and site management. The committees are designed to encourage
trust and transparency, and must be trained in all aspects of safety, leadership, and communication to ensure Huhtamaki
provides a safe working environment. Their activities include participation in leadership team discussions, meetings with
employees, and other gatherings where workers are consulted. Active communication on these topics is facilitated through
information boards and the Huhtamaki intranet. Attendees participate in these engagements during their working hours
and are provided with any required support by safety representatives to fulfill their roles in these forums.
Huhtamaki’s annual employee engagement survey, Connect, provides all own employees the opportunity to address their
perspective and give feedback on material topics affecting them. Based on the results and feedback gained from the survey,
actions are planned at different levels of the organization. Additionally, annual performance reviews and development
discussions provide a formal opportunity for a dialogue between an employee and their manager. Aside from formal
discussions, Huhtamaki encourages asking for, and offering, regular feedback.
Processes to remediate negative impacts and channels for own workers to raise concerns
Huhtamaki encourages reporting of any suspected or observed violations or misconduct through various channels,
including the anonymous Huhtamaki Speak Up channel. All reports of potential human rights violations or breaches of the
Huhtamaki Code of Conduct are taken seriously and investigated according to the Speak Up and Investigations Policy, with
the aim of ensuring alleged violations are appropriately addressed and remedied. Reporting is open to both Huhtamaki’s
own workforce and external stakeholders. Detailed procedures and channels for reporting and investigation are outlined
in section “Mechanisms for identifying, reporting and investigating concerns“ on page 79. To ensure the availability and
accessibility of channels for raising concerns, Huhtamaki promotes awareness of and access to these channels through
annual, mandatory Code of Conduct trainings, and speak-up themed posters available in 24 languages. For more details,
refer to “Business conduct polices and corporate culture” section on page 78.
The Huhtamaki Investigations Council monitors and tracks issues raised and addressed in accordance with the procedure
outlined in the Speak Up and Investigations Policy. They follow up on reported incidents and review the mitigating
activities. In an effort to ensure the effectiveness of its reporting channels, Huhtamaki provides regular training and
communication about the channels to its employees. Huhtamaki evaluates employees' trust in the reporting mechanisms
through the Connect survey, which includes a targeted question on reporting unethical practices. The Global Ethics and
Compliance team oversees actions and processes followed by the global or local investigation teams, so investigation
procedures are independent, objective, and effective.
Local grievances related to workplace issues or employment concerns are investigated and addressed according to local
regulatory requirements. As defined in the Global Employment Guidelines, all Huhtamaki locations shall have a written
grievance process in place. Huhtamaki’s management at each level is responsible for resolving daily workplace concerns
impacting employees in a prompt and fair manner within the course of normal working relationships. Formal grievance
procedures vary by country and are managed by local HR in line with local regulations. All formal grievances are
documented according to local regulatory requirements. Guidelines and policies outline the processes to help ensure
employees can express complaints and receive a fair hearing and investigation. This includes an escalation and appeals
process with clear responsibilities and decision-making protocols.
Remediating health and safety impacts
Directors’ Report and Financial Statements 2025 | 71
Health and safety are core values at Huhtamaki, reflecting the nature and scale of the operations, and their impact on
people, customers, communities and the environment. A culture of managing and safeguarding health and safety is
embedded at all levels of the organization. Huhtamaki promotes a proactive and preventive approach to identifying,
mitigating, and remediating actual and potential negative impacts. Continuous learning, improvement, and collaboration
are emphasized across the organization. By reinforcing the mindset of "Think Safe. Work Safe. Home Safe." in all actions,
Huhtamaki strives to embed safety into its culture.
Each site adheres to a risk-based approach for managing health and safety. A proactive and preventive strategy, as outlined
by the Safety Pillar, is in place to identify risks and potential hazards at an early stage. Appropriate control measures are
applied using the hierarchy of controls, with actions tracked through to completion. Employees have access to the Speak
Up channel for reporting any unfair, unsafe, or unhealthy working conditions, allowing Huhtamaki to respond and address
issues promptly. A formally defined investigation process for work-related incidents is in place at all sites, ensuring
consistent review, response, follow-up, and escalation. Sites are encouraged to systematically share learnings from serious
incidents, both within their business segment and across the global network.
Actions related to own workforce
Huhtamaki's people priorities and actions related to its own workforce are aligned to support the execution of the 2030
strategy. Huhtamaki has set measurable, outcome-oriented, and time-bound targets for health and safety, employee
engagement, leadership, inclusion, and voluntary turnover. These targets enable Huhtamaki to track and assess the
effectiveness of its actions in addressing material impacts and risks impacting its workforce. Targets are set annually, with
most actions recurring each year. Some initiatives, such as the Safety Pillar, are designed as multi-year programs. The
processes through which Huhtamaki identifies necessary actions in response to actual or potential negative impacts on its
workforce, and engages with this stakeholder group, are outlined above in this section. Overall, the implementation of
Group policies in the organization establishes the foundation for addressing different potential impacts on the workforce.
Resources from all levels (global, region, and local) of the HR and EHS organizations are dedicated to managing the material
impacts. Huhtamaki does not currently have significant operational or capital expenditures allocated for the
implementation of the defined own workforce related actions, but smaller financial resources in addition to the dedicated
personnel are designated to support the implementation efforts.
Actions to prevent and mitigate negative impacts and risks
To foster a robust safety culture, Huhtamaki provides site and job-specific health and safety trainings as part of the
induction process for all new employees. Segment or technology-specific content is available through an online training
platform. Additionally, contractors receive a site-specific health and safety induction tailored to their work area, ensuring
awareness of the unique risks related to their tasks. Huhtamaki has integrated health and safety into its comprehensive
operational improvement approach, so that it is prioritized as an integral part of operational performance. The health and
safety strategy was further advanced with a focus on the development and implementation of the holistic Safety Pillar
program, which aims to ensure that all accidents are reported, investigated, and the learnings shared across the
organization. The Safety Pillar consists of 7 different Steps which are launched one step at a time, with support from the
EHS organizations. By the end of 2025, all Huhtamaki locations have been trained on Step 1 and Step 2, and most
manufacturing sites had been trained on Step 3, preparing them for its launch.
Monthly risk reviews are conducted to identify areas for improvement, with site and segment leadership teams overseeing
the health and safety risks and supporting improvement plans. Huhtamaki requires all its sites to conduct occupational
health risk assessments for all activities, adhering to local legal requirements regarding the scope and frequency of medical
and health checks. Programs are set for annual delivery, and they are tracked and reported monthly. To mitigate the
negative impact of chemical safety, Huhtamaki has implemented hazardous material standards, control processes and
management system tracking.
All employees have access to locally contracted occupational health services. Some sites have a permanent doctor and/or
nurse on-site, while others have a contract with a nearby health service center. Additional health services and programs
are provided at many sites to support employees’ overall well-being and health. Participation in such additional programs
is voluntary.
To address the risk of availability of skilled workforce and tight talent markets, Huhtamaki systematically identifies and
addresses retention drivers locally. Through the global HR organization, initiatives have been shared to drive employee
Directors’ Report and Financial Statements 2025 | 72
retention locally. An exit questionnaire has provided Huhtamaki with valuable insights into how to improve employee
retention and engagement. The employee turnover rate is continuously monitored in all parts of the organization, and the
voluntary turnover is set as an official target at the Group level.
To support the development of strategic capabilities and career paths to deliver the 2030 strategy, Huhtamaki
implemented programs and deployed several initiatives in 2025. These include the annual review of individual performance
and development plans for non-production employees, the annual Global Week(s) of Learning and Global Feedback Week
events, and the Strategic Leadership Program. Additionally, a global Employer Brand has been launched, along with the
Career Hub tool, which supports employee development and internal mobility for non-production employees globally. A
pilot of a new 360 feedback tool and process has also been undertaken. To ensure consistency and enhance engagement,
Huhtamaki has introduced a new onboarding process for all newly hired employees. Huhtamaki follows the effectiveness
of its training and skills development activities by asking for feedback from its employees. The effectiveness of the
individual development actions is discussed together with the manager during performance reviews and development
discussions for non-production employees. In 2025, Huhtamaki also piloted performance management process for its
production employees in a few sites.
Targets related to own workforce
Table 10: Targets related to own workforce
Target
Scope
Annual target
2024
2025
Lost Time Injury Frequency
Rate (LTIFR)
Base year: 2021
Baseline value: 1.36
Own employees,
globally
1.03
1.23
1
1.23
Total Recordable Injury
Frequency Rate (TRIFR)
Base year: 2021
Baseline value: 4.29
Own employees,
globally
2.26
2.69
2
2.57
Employee Engagement Index
above manufacturing industry
benchmark
Base year: 2021
Baseline value: 77%
Own employees,
globally
>82%
85%
84%
Leadership Index above
manufacturing industry
benchmark
Base year: 2021
Baseline value: 72%
Own employees,
globally
>80%
84%
83%
Inclusion Index above
manufacturing industry
benchmark
Base year: 2023
Baseline value: 83%
Own employees,
globally
>79%
85%
85%
Voluntary Turnover below
global benchmark
Base year: 2022
Baseline value: 10.4%
Own employees,
globally
<9.4%
8.6%
8.9%
1
Previously reported 1.21. Restated due to 1 lost time injury (LTI) that occurred in 2024 being reported in 2025.
2
Previously reported 2.66. Restated due to 1 lost time injury (LTI) that occurred in 2024 being reported in 2025.
Huhtamaki’s targets related to its employees are focused on employee safety, engagement, leadership, inclusive culture
and retention, and they are aligned with the Group policies. These targets, aligned with Huhtamaki's strategic ambitions,
are set to measure progress in value-creation for its own employees. The aim is to reduce negative impacts, as well as
manage identified material risks. The approach to stakeholder engagement and target setting methodology differs
according to the target; however, all targets are ultimately approved by the Group’s HR leadership team. Further action
planning is done on an annual basis, depending on the outcomes against set targets. In 2025, the Group’s HR leadership
Directors’ Report and Financial Statements 2025 | 73
team decided to maintain same targets as previous year, recognizing their continued relevance for managing impacts on
employees. Huhtamaki’s own employees or their representatives are not directly involved in the Group level target setting
process for any of the abovementioned targets.
Continuous improvement in safety performance is a priority at Huhtamaki. Huhtamaki sites proactively identify health and
safety risks, including those related to chemical hazards, and implement control measures to eliminate or minimize the risks
identified. Global targets for Lost Time Injury Frequency Rate (LTIFR) and Total Recordable Injury Frequency Rate (TRIFR)
are set to measure the progress and ensure that the commitment and expectation expressed in the Global Health and
Safety (OHS) Policy Statement are met year by year. The global targets are based on the previous year’s results to meet
the long-term ambitions set for 2030. The methodology and assumptions for calculating the rates have been described in
more detail in the “
Health and safety metrics
2024
2025
Percentage of people in its own workforce who are covered by health and safety management system
based on legal requirements and (or) recognized standards or guidelines
46.2%
32.8%
Number of fatalities in own workforce as result of work-related injuries and work-related ill health
0
0
Number of fatalities as result of work-related injuries and work-related ill health of other workers working
on Huhtamaki’s sites
0
0
Number of recordable work-related accidents for own workforce and contractors (total)
109
104
Number of recordable work-related accidents for own employees
93
95
Number of recordable work-related accidents for contingent workers
12
5
Number of recordable work-related accidents for contractors
4
4
Rate of recordable work-related accidents for own workforce (total)
2.69
2.57
Rate of recordable work-related accidents for own employees
2.69
2.74
Rate of recordable work-related accidents for contingent workers and contractors
2.68
1.53
Number of days lost to work-related injuries and fatalities from work-related accidents for own workforce
(total)
1,812
2,022
Number of days lost to work-related injuries and fatalities from work-related accidents for
own employees
1,779
1,986
Number of days lost to work-related injuries and fatalities from work-related accidents for
contingent workers
33
36
Reporting principles for own workforce related metrics
” section on page 76. Performance against the set targets is
regularly communicated to employees through various channels, including monthly dashboards, intranet articles, quarterly
updates from the President and CEO, and employee newsletters. The performance results are also presented annually to
employee representative groups such as the EWC. Employees can suggest improvements informally or formally through
channels like the employee engagement survey.
Huhtamaki's employee engagement survey is conducted annually to measure the development of performance against the
targets. All Huhtamaki employees are given the opportunity to participate in the survey, except for those who have been
employed for less than two months before the survey begins. Key indicators used to measure progress against the targets
include different indices Huhtamaki monitors annually based on the survey results. The Employee Engagement Index
measures how engaged, enabled, and energized employees are at work, the Inclusion Index measures employee experience
with regard to equal opportunity and inclusion in the workplace, and the Leadership Index measures the effectiveness of
Huhtamaki’s managers. The index scores are derived from responses to specific questions, assuming honest feedback and
an accurate representation of the entire workforce. However, they may be affected by response bias and external factors.
Huhtamaki aims to surpass the manufacturing industry benchmark levels, which are measured and provided annually by
Willis Towers Watson. No significant assumptions have been made when setting these targets. The key stakeholder in the
decision-making process is the GET. The results of the surveys are presented annually to all employees as well as employee
representative groups such as the EWC. Employees are also closely involved in identifying necessary actions to further
improve.
Directors’ Report and Financial Statements 2025 | 74
Huhtamaki aims to build a workplace that not only attracts talent but also keeps it. By setting an annual voluntary turnover
target that is lower than the external benchmark, the Group can better evaluate the effectiveness of its efforts to attract
and retain skilled employees. Mercer’s Annual Movement data is used as the external benchmark when defining this target.
The voluntary turnover rate is calculated from termination events (excluding reason codes retirement, mutual agreement,
and end of assignment) as recorded in Huhtamaki's Human Resources Information System (HRIS). It is assumed that the
information has been recorded in the system in a timely and accurate manner. Tracking performance and identifying
necessary initiatives to manage voluntary attrition are tasks handled by Huhtamaki’s HR organization, without direct
involvement from own employees from the rest of the organization or employee representative groups. Such projects or
initiatives support addressing areas where there is a risk of availability of skilled workforce and talent. Furthermore, exit
interviews support Huhtamaki with positive impacts in engaging with stakeholders and gaining important insights.
Characteristics of Huhtamaki’s employees
Table 11. Employee headcount by gender
Gender
Number of employees (headcount)
2024
2025
Male
13,653
13,311
Female
4,140
4,076
Other
-
-
Not reported
1
3
Total employees
17,794
17,390
Table 12. Employee headcount in countries with at least 50 employees representing at least 10% of its total number of employees
z
Country
Number of employees (headcount)
2024
2025
United States of America
4,205
4,335
India
2,517
2,364
Germany
1,332
1,329
United Kingdom
1,201
1,100
Türkiye
1,125
1,079
Thailand
911
918
Poland
688
658
Egypt
654
651
South Africa
648
658
China
579
567
Spain
503
458
Netherlands
451
414
Vietnam
409
402
Finland
354
342
Australia
344
310
United Arab Emirates
301
291
Directors’ Report and Financial Statements 2025 | 75
Czechia
288
291
Brazil
277
296
France
236
233
Italy
167
165
Ireland
145
130
Mexico
127
112
Saudi Arabia
116
109
New Zealand
68
64
Table 13. Employees by contract type broken down by gender
Type
Female
Male
Other
Not disclosed
Total
Number of employees
4,076
13,311
-
3
17,390
Number of permanent
employees
3,803
12,890
-
3
16,696
Number of temporary
employees
259
417
-
-
676
Number of non-guaranteed
hours employees
14
4
-
-
18
Number of full-time
employees
3,870
13,142
-
3
17,015
Number of part-time
employees
206
169
-
-
375
Table 14. Employees by contract type, broken down by region
Type
Asia & Oceania
Europe
Middle East
& Africa
North and South
America
Total
Number of employees
4,671
6,267
1,709
4,743
17,390
Number of permanent
employees
4,272
6,034
1,681
4,709
16,696
Number of temporary
employees
397
217
28
34
676
Number of non-
guaranteed hours
employees
2
16
-
-
18
Number of full-time
employees
4,664
5,924
1,707
4,720
17,015
Number of part-time
employees
7
343
2
23
375
Table 15. Employee turnover in reporting period
Type
Turnover
2024
2025
Total number of employees who have left the undertaking
during the reporting period
2,886
2,719
Directors’ Report and Financial Statements 2025 | 76
Rate of employee turnover in the reporting period (%)
17.1
16.0
Health and safety indicators
Table 16. Health and safety metrics
Health and safety metrics
2024
2025
Percentage of people in its own workforce who are covered by health and safety management system
based on legal requirements and (or) recognized standards or guidelines
46.2%
32.8%
Number of fatalities in own workforce as result of work-related injuries and work-related ill health
0
0
Number of fatalities as result of work-related injuries and work-related ill health of other workers working
on Huhtamaki’s sites
0
0
Number of recordable work-related accidents for own workforce and contractors (total)
109
104
Number of recordable work-related accidents for own employees
93
95
Number of recordable work-related accidents for contingent workers
12
5
Number of recordable work-related accidents for contractors
4
4
Rate of recordable work-related accidents for own workforce (total)
2.69
2.57
Rate of recordable work-related accidents for own employees
2.69
2.74
Rate of recordable work-related accidents for contingent workers and contractors
2.68
1.53
Number of days lost to work-related injuries and fatalities from work-related accidents for own workforce
(total)
1,812
2,022
Number of days lost to work-related injuries and fatalities from work-related accidents for
own employees
1,779
1,986
Number of days lost to work-related injuries and fatalities from work-related accidents for
contingent workers
33
36
Reporting principles for own workforce related metrics
Calculation methodologies
The headcount information is based on the employment data registered to Huhtamaki’s HRIS system at the end of the
reporting period (December 31, 2025). The figures encompass all entities within the Huhtamaki Group, including inactive
employees on long-term leave as of the reporting date. Employment information is recorded according to national laws,
but the consolidated figures in this sustainability statement follow aligned Group definitions.
The information reported under the notes to the consolidated financial statements (section 2.2. Employee Benefits), is
based on the average headcount number for the reporting year, in accordance with the Finnish Accounting Decree.
Temporary employees include fixed-term employees, apprentices and interns. Part-time employees are employees who
have fewer contractually scheduled weekly working hours than the default working hours of the location. Temporary or
part-time employment is primarily utilized to manage business seasonality and to cover employee leaves. If fixed-term
agreements are utilized, the respective country’s legislation is followed.
Employee turnover rate is calculated by dividing the number of all termination events in all employee groups by the average
number of own employees during the reporting period.
The health and safety metrics are based on data reported using Huhtamaki’s sustainability reporting tool and extracted
after the end of the reporting period (December 31, 2025). The figures encompass all operational sites and relevant office
locations within the Huhtamaki Group. It is assumed that the information has been recorded in the system in a timely and
accurate manner.
Directors’ Report and Financial Statements 2025 | 77
The percentage of workers covered by a health and safety management system is determined by identifying the sites that
are certified according to a recognized standard and counting the number of people working at those sites. The headcount
of the certified sites is then compared to the total number of people in the workforce to calculate the final percentage. The
Health and Safety management systems considered in the calculation are ISO 45001 certified systems for all reporting
sites except for one site in Germany where management system is OHRIS certified.
The absolute numbers of accidents and fatalities include work-related cases for which Huhtamaki has taken responsibility,
due to direct supervision of the work or project management duties, which therefore include accidents of its own workforce
(own employees and contingent workers) and contractors. Contractors are defined as external individuals or entities who
formally and temporarily provide services, labor, or materials that are not directly related to Huhtamaki’s core business of
producing packaging solutions. Examples include, but are not limited to, personnel engaged in building or construction
work, IT services, or consultancy.
The rates of recordable work-related accidents are collected at year-end and calculated by dividing the number of recorded
accidents at each site by the total working hours for the year, then multiplying by a factor of 1 million (a commonly used
international standard to ensure consistency and comparability).
To calculate the number of days lost, the number of lost time hours is extracted from the sustainability reporting tool. An
8-hour day is used as the standard to convert the total hours into days lost. Calendar days on which the affected individual
is not scheduled for work are not counted as lost days. The number of lost days reported for the current year may include
workdays lost due to recordable injuries incurred in the previous year, as the resulting absence may extend into the
reporting period.
The measurement of the metrics is not validated by an external body other than Huhtamaki’s assurance provider.
Identified limitations
Any fluctuations in headcount numbers during the reporting period are not reflected in the reported numbers, as they are
collected at the end of the reporting period only.
Although there are no clear limitations for health and safety reporting, estimation of December working hours may be
needed as some sites may not have finalized figures available when data is extracted for year-end reporting. The rates
encompass accident data for both Huhtamaki’s own workforce and contractors workers. Due to limitations in tracking
contractor working hours, these contractor hours are excluded from the rates.
Directors’ Report and Financial Statements 2025 | 78
Governance information
ESRS G1 Business conduct
The role of administrative, management and supervisory bodies
The role and expertise of the Board in relation to business conduct matters is described in detail in chapter “Role and
expertise of the Board in relation to business conduct matters” starting from page 23.
Material impacts related to business conduct
The material impacts, risks and opportunities related to Huhtamaki’s business conduct and corporate culture have been
identified in the double materiality assessment, which is described in detail in chapter Description of the processes to
identify and assess material impacts, risks and opportunities starting on page 33.
Targets related to business conduct
Policy objective
Target
Scope
Annual target
2024
2025
Fostering ethical
business conduct
and corporate
culture
All Huhtamaki employees have
completed the annual Code of
Conduct training by the end of
the year
All
Huhtamaki
employees
100%
97.9%
98.5%
Huhtamaki has established a measurable, outcome-oriented, and timebound target for ethical business conduct and
corporate culture. The governance target serves as a key metric that demonstrates its commitment to fostering ethical
business conduct and corporate culture throughout the Group. Huhtamaki’s target for the Code of Conduct completion is
monitored annually, with related actions recurring each year. The content of the trainings and the performance against
these targets are further described in the sections below.
Business conduct polices and corporate culture
Code of Conduct – Huhtamaki policy for ethical business conduct and corporate culture
The Huhtamaki Code of Conduct establishes and embodies the principal themes of Huhtamaki’s business conduct and
corporate culture that are based on the Huhtamaki values – Care, Dare, Deliver. The Code of Conduct applies to all
Huhtamaki employees, members of management, officers, and directors globally, and guides them to live by the Huhtamaki
values, comply with applicable laws, regulations, and internal requirements, and make ethically sound decisions in their
daily work.
Through its Code of Conduct, Huhtamaki fosters a culture where everyone is expected to act with integrity and respect,
and encouraged to voice concerns if they observe or suspect instances of non-compliance. The Code of Conduct document
Material impact
Description
Applicability
Corporate culture
Positive
impact
Ethical
business
conduct and
corporate
culture
Positive impact through Huhtamaki’s commitment to upholding its
corporate values and culture, and promoting ethical business
conduct, which builds trust and engagement in and outside
Huhtamaki
Own
operations
Positive
impact
Protection of
whistle blowers
Huhtamaki has established whistleblower protection policies to
ensure employees can report unlawful behavior or unethical practices
without fear of retaliation.
Own
operations
Directors’ Report and Financial Statements 2025 | 79
is available in 24 languages on Huhtamaki’s internal and external websites. In addition to the Code of Conduct, Huhtamaki’s
commitment to its ethical business conduct is further embodied in the following key documents:
•
Code of Conduct for Huhtamaki Suppliers
•
Group Anti-corruption Policy (consistent with the United Nations Convention against Corruption)
•
Group Competition Compliance Policy
•
Group Corporate Governance Policy
•
Group Data Privacy Policy
•
Group Human Rights Policy
•
Group Insider Policy
•
Group Speak Up and Investigations Policy
•
Group Trade Sanctions Compliance Policy
The Board has approved the Code of Conduct and holds oversight responsibility to ensure that it is carefully followed
across Huhtamaki. The Global Executive Team, alongside leaders at all levels of the organization, are responsible for
implementing the Code of Conduct. Huhtamaki’s Global Ethics and Compliance team serves in an advisory and partnering
role and is responsible for the overall framework for addressing ethics and compliance matters. The team reports regularly
on non-compliance instances to the Investigations Council (IC). The IC is chaired by the Group General Counsel, with other
members including the Chief Financial Officer, and the Executive Vice President, Human Resources and Safety. Further,
the team provides regular updates on topical compliance matters to the Audit Committee.
Promoting ethical business conduct and corporate culture through training and communication – Key actions
Regular communication and training are vital components of promoting and developing corporate culture and raising
awareness about ethical business conduct. Every Huhtamaki employee, including part-time, temporary, and fixed-term
staff, must complete an annual Code of Conduct training. This training is available in both e-learning and classroom formats,
in a total of 24 languages. The Code of Conduct training covers key elements of ethical business conduct and provides
guidance and practical examples on legal compliance and ethical behavior. Huhtamaki’s target is for 100% of its employees
to complete the annual training. In 2025, the annual Code of Conduct training was completed by 98.5% of all employees.
In 2025, all members of Huhtamaki’s Board of Directors completed the Code of Conduct training.
Depending on their roles, employees are also offered e-learning courses on anti-trust and competition compliance, data
privacy and information security, as well as anti-corruption and bribery. The Global Ethics and Compliance team also
organizes targeted face-to-face trainings for selected internal target audiences.
Huhtamaki’s specific anti-corruption e-learning is designed to equip employees with the knowledge and tools to identify
and prevent bribery and corrupt practices, and to provide guidance and practical examples. The e-learning is mandatory
for Huhtamaki employees working in designated functions-at-risk, where their tasks and responsibilities expose them to
situations with elevated risks of corruption and bribery, and must be completed annually. Certain employees are also
designated as part of the functions-at-risk group due to their oversight responsibilities or gate-keeping roles in managing
and mitigating corruption risks. At Huhtamaki, the following functions and roles globally belong to functions-at-risk:
finance, legal, sales, sourcing, general managers, senior managers at operations and the employees reporting to them as
well as the GET and the employees reporting to them.
In addition to the trainings, Huhtamaki’s key activities in 2025 for promoting ethical business conduct and corporate
culture included townhall communication, articles published on the Huhtamaki intranet, a specific Code of Conduct
intranet site, as well as Code of Conduct-themed posters and info screen slides at Huhtamaki sites emphasizing the
importance of ethical business conduct. Huhtamaki also continued utilizing the Code of Conduct ambassador network and,
among other things, promoting and communicating important compliance matters through the network.
Huhtamaki also
conducted its annual employee engagement survey, Connect, which is one way for Huhtamaki to evaluate its culture.
Acknowledging the importance of leading by example, Huhtamaki promotes its corporate culture through its leadership
model, called Leader’s Imprint. This model is designed to guide people leaders in embodying the desired behaviors that
support Huhtamaki values, and to set a standard for employees to follow. Huhtamaki also invests in leadership
development, employee training and onboarding activities, and recognition programs. Consistent internal communication
and annual people processes are implemented to promote the desired behaviors across the organization. As part of the
Directors’ Report and Financial Statements 2025 | 80
efforts for upholding and evaluating its corporate culture, Huhtamaki maintains mechanisms for identifying, reporting, and
investigating concerns. These mechanisms are further described below.
Mechanisms for identifying, reporting and investigating concerns
Huhtamaki offers multiple channels for reporting concerns and observed or suspected non-compliance. These instances
may include breaches of the Code of Conduct or other Huhtamaki policies and internally binding guidelines, or violations
of applicable laws and regulations, including incidents of corruption and bribery. Employees can report concerns to their
manager, human resources, legal team, or directly to the Global Ethics and Compliance team.
Additionally, the Huhtamaki Speak Up channel provides an electronic platform that can be used to raise concerns
anonymously and, in the employee’s own language. Huhtamaki Speak Up is a global, online whistleblowing system operated
by an external service provider and managed by the Global Ethics and Compliance team. It is available to all Huhtamaki
employees and external stakeholders such as suppliers, customers, value chain workers, consumers, and end-users, and
can be accessed through Huhtamaki’s internal and external websites.
During 2025, Huhtamaki upgraded the its whistleblowing platform. This change reflects Huhtamaki’s ongoing commitment
to foster a culture of transparency and integrity across all levels of the organization. The new tool provides enhanced
functionalities, including the ability to report concerns via mobile app and phone, making it easier and more accessible for
everyone to raise concerns confidentially.
In some countries, reports can also be submitted via local reporting channels, including entity-specific channels in
accordance with the applicable local legislation transposing Directive (EU) 2019/1937 of the European Parliament and of
the Council. The Global Ethics and Compliance team has an overall responsibility for the channels for speaking up and has
designated, professionally trained staff to receive reports.
Information about Huhtamaki’s reporting channels is communicated to all employees through the annual Code of Conduct
training, targeted compliance trainings, intranet communications, speak-up themed posters, info screens, and townhall
meetings. Communication materials are available in 24 languages to ensure accessibility. A link to the Huhtamaki Speak Up
channel is also included in the Code of Conduct for Huhtamaki Suppliers to ensure that business partners providing goods
or services to Huhtamaki are aware of the channel.
At Huhtamaki, the Global Ethics and Compliance team has the overall responsibility for investigating all reports of
observed or suspected non-compliance, including allegations of corruption and bribery. These reports are investigated in
compliance with the Group Speak Up and Investigations Policy, which provides the framework and procedure to
investigate alleged instances of non-compliance promptly, independently, and objectively.
All reports and investigation cases are treated as highly confidential. To secure objectivity, no one is allowed to be involved
in investigating or determining possible corrective actions in a case where they are the subject of the investigation or
involved in the confirmed non-compliance. Individuals investigating a case are separate from the chain of management
involved in the matter, as well as from those approving the corrective actions, including disciplinary measures.
Global Ethics and Compliance reports to the Investigations Council, which oversees and acts as the decision-making body
for the investigations, including determining corrective and preventative actions, and formally closing the investigations.
The Investigations Council
convenes regularly and as needed. Global Ethics and Compliance also regularly provides status
updates on investigation cases and their outcomes to the Huhtamaki Board of Directors through its Audit Committee.
In addition to the global procedure outlined in the Group Speak Up and Investigations Policy, local grievance cases related
to workplace issues or employment relationship concerns are investigated and addressed according to local grievance
procedures and regulatory requirements. A detailed description of local grievance procedures can be found in the chapter
“Processes to remediate negative impacts and channels for own workers to raise concerns” on page 70.
Protection of whistle-blowers
At Huhtamaki, victimization of any individual reporting observed or suspected non-compliance in good faith is not
tolerated. Therefore, Huhtamaki has established a strict non-retaliation rule, which is outlined in the Group Speak Up and
Investigations Policy, protecting whistleblowers in accordance with the applicable law transposing Directive (EU)
Directors’ Report and Financial Statements 2025 | 81
2019/1937. The non-retaliation rule is communicated to all Huhtamaki employees through the annual mandatory Code of
Conduct training, and it is recorded in Huhtamaki’s compliance policies.
All potential retaliation cases are taken seriously and investigated appropriately in accordance with the Group Speak Up
and Investigations Policy.
Directors’ Report and Financial Statements 2025 | 82
Appendix to the sustainability statement
Disclosure requirements in ESRS covered by Huhtamaki’s sustainability statement
Cross-cutting standards
Disclosure requirement
ESRS 2
General disclosures
Page
Additional
information
BP-1
General basis for preparation of the Sustainability Statement
19
BP-2
Disclosures in relation to specific circumstances
19
GOV-1
The role of the administrative, management and supervisory bodies
21
GOV-2
Information provided to and sustainability matters addressed by Huhtamaki’s
administrative, management and supervisory bodies
22
GOV-3
Integration of sustainability-related performance in incentive schemes
23
GOV-4
Statement on sustainability due diligence
Error!
Bookmark
not
defined.
GOV-5
Risk management and internal controls over sustainability reporting
24
SBM-1
Strategy, business model and value chain
25
40(b) (breakdown
of total revenue by
significant ESRS
sector) and 40(c)
(list of additional
significant ESRS
sectors) omitted
due to ESRS
sectors not defined
by the European
Commission
SBM-2
Interests and views of stakeholders
27
SBM-3
Material impacts, risks and opportunities and their interaction with strategy and
business model
30
48(e) (anticipated
financial effects)
omitted due to
phased-in
optionality
IRO-1
Description of the processes to identify and assess material impacts, risks and
opportunities
33
IRO-2
Disclosure requirements in ESRS covered by Huhtamaki’s Sustainability
Statement
96
Environmental standards
Disclosure requirements
ESRS E1
Climate change
Page
Additional
information
ESRS
2,
GOV-3
Integration of sustainability-related performance in incentive schemes
23
E1-1
Transition plan for climate change mitigation
44
ESRS
2,
SBM-3
Material impacts, risks and opportunities, and their interaction with
strategy and business model
46
ESRS, IRO-1
Description of the processes to identify and assess material climate-
related impacts, risks and opportunities
33
E1-2
Policies related to climate change mitigation and adaptation
47
E1-3
Actions and resources in relation to climate change policies
48
E1-4
Targets related to climate change mitigation and adaptation
50
E1-5
Energy consumption and mix
51
Directors’ Report and Financial Statements 2025 | 83
E1-6
Gross Scopes 1, 2, 3 and total GHG emissions
53
E1-7
GHG removals and GHG mitigation projects financed through carbon
credits
-
Not applicable
E1-8
Internal carbon pricing
53
E1-9
Anticipated financial effects from material physical and transition risks
and
potential climate-related opportunities
-
Phased-in
requirement
ESRS E5
Resource use and circular economy
Page
Additional
information
ESRS 2, IRO-1
Description of the processes to identify and assess material resource use
and circular economy-related impacts, risks and opportunities
36
E5-1
Policies related to resource use and circular economy
60
E5-2
Actions and resources related to resource use and circular economy
61
E5-3
Targets related to resource use and circular economy
62
E5-4
Resource inflows
64
E5-5
Resource outflows
66
E5-6
Anticipated financial effects from resource use and circular economy-
related impacts, risks and opportunities
-
Phased-in
requirement
Social standards
Disclosure requirements
ESRS S1
Own workforce
Page
Additional
information
ESRS 2, SBM-
2
Interests and views of stakeholders
27
ESRS 2, SBM-
3
Material impacts, risks and opportunities and their interaction with
strategy and business model
67
S1-1
Policies related to own workforce
67
S1-2
Processes
for
engaging
with
own
workforce
and
workers’
representatives about impacts
69
S1-3
Processes to remediate negative impacts and channels for own workers
to raise concerns
70
S1-4
Taking action on material impacts on own workforce, and approaches to
managing material risks and pursuing material opportunities related to
own workforce, and effectiveness of those actions
71
S1-5
Targets related to managing material negative impacts, advancing
positive impacts, and managing material risks and opportunities
72
S1-6
Characteristics of Huhtamaki’s employees
74
S1-7
Characteristics of non-employee workers in Huhtamaki’s own workforce
-
Phased-in
requirement
S1-8
Collective bargaining coverage and social dialogue
-
Not material
S1-9
Diversity metrics
-
Not material
S1-10
Adequate wages
-
Not material
S1-11
Social protection
-
Phased-in
requirement
S1-12
Persons with disabilities
-
Not material
S1-13
Training and skills development metrics
-
Phased-in
requirement
S1-14
Health and safety metrics
76
All data points for
S1-14
for
non-
employees, Number
of
cases
of
recordable
work-
Directors’ Report and Financial Statements 2025 | 84
related
ill
health,
and Number of days
lost to work-related
ill
health
and
fatalities
from
ill
health omitted due
to
phased-in
optionality
S1-15
Work-life balance metrics
-
Phased-in
requirement
S1-16
Remuneration metrics (pay gap and total remuneration)
-
Not material
S1-17
Incidents, complaints and severe human rights impacts
-
Not material
Governance standards
Disclosure requirements
ESRS G1
Business conduct
Page
Additional
information
ESRS 2, GOV-
1
The role of the administrative, management and supervisory bodies
78
ESRS 2, IRO-1
Description of the processes to identify and assess material impacts, risks
and opportunities
33
G1-1
Business conduct policies and corporate culture
78
G1-2
Management of relationships with suppliers
-
Not material
G1-3
Prevention and detection of corruption and bribery
-
Not material
G1-4
Incidents of corruption or bribery
-
Not material
G1-5
Political influence and lobbying activities
-
Not material
G1-6
Payment practices
-
Not material
Directors’ Report and Financial Statements 2025 | 85
Datapoints that derive from other EU legislation
Disclosure
requirement
Data point
SFDR
reference
Pillar
3
reference
Benchmark
regulation
reference
EU
Climate
Law
Page
ESRS 2 GOV-1
21 (d)
Board's gender diversity
x
x
21
ESRS 2 GOV-1
21 (e)
Percentage of board members who
are independent
x
21
ESRS 2 GOV-4
30
Statement on due diligence paragraph
x
23
ESRS 2 SBM-1
40 (d) i
Involvement in activities related to
fossil fuel activities
x
x
x
Not
material
ESRS 2 SBM-1
40 (d)
ii
Involvement in activities related to
chemical production
x
x
Not
material
ESRS 2 SBM-1
40 (d)
iii
Involvement in activities related to
controversial weapons
x
x
Not
material
ESRS 2 SBM-1
40 (d)
iv
Involvement in activities related to
cultivation and production of tobacco
x
Not
material
ESRS E1-1
14
Transition plan to reach climate
neutrality by 2050
x
44
ESRS E1-1
16 (g)
Companies excluded from Paris-
aligned Benchmarks
x
x
45
ESRS E1-4
34
GHG emission reduction targets
x
x
x
44
ESRS E1-5
38
Energy consumption from fossil
sources disaggregated by sources
(only high climate impact sectors)
x
51
ESRS E1-5
37
Energy consumption and mix
x
51
ESRS E1-5
40
to
43
Energy intensity associated with
activities in high climate impact
sectors
x
51
ESRS E1-6
44
Gross Scope 1, 2, 3 and Total GHG
emissions
x
x
x
53
ESRS E1-6
53
to
55
Gross GHG emissions intensity
x
x
x
53
ESRS E1-7
56
GHG removals and carbon credits
x
Not
applicable
ESRS E1-9
66
Exposure of the benchmark portfolio
to climate-related physical risks
x
Phased-in
ESRS E1-9
66 (a)
Disaggregation of monetary amounts
by acute and chronic physical risk
x
Phased-in
ESRS E1-9
66 (c)
Location of significant assets at
material physical risk
x
Phased-in
ESRS E1-9
67 (c)
Breakdown of the carrying value of its
real estate assets by energy-efficiency
classes
x
Phased-in
ESRS E1-9
69
Degree of exposure of the portfolio to
climate- related opportunities
x
Phased-in
ESRS E2-4
28
Amount of each pollutant listed in
Annex II of the E-PRTR Regulation
(European Pollutant Release and
Transfer Register) emitted to air,
water and soil
x
Not
material
ESRS E3-1
9
Water and marine resources
x
Not
material
ESRS E3-1
13
Dedicated policy paragraph
x
Not
material
ESRS E3-1
14
Sustainable oceans and seas
x
Not
material
ESRS E3-4
28(c)
Total water recycled and reused
x
Not
material
ESRS E3-4
29
Total water consumption in m3 per net
revenue on own operations
x
Not
material
ESRS2 SBM-3 -
E4
16 (a) i
x
Not
material
ESRS2 SBM-3 -
E4
16 (b)
x
Not
material
ESRS2 SBM-3 -
E4
16 (c)
x
Not
material
ESRS E4-2
24 (b)
Sustainable land / agriculture practices
or policies
x
Not
material
Directors’ Report and Financial Statements 2025 | 86
ESRS E4-2
24 (c)
Sustainable oceans / seas practices or
policies
x
Not
material
ESRS E4-2
24 (d)
Policies to address deforestation
x
Not
material
ESRS E5-5
37 (d)
Non-recycled waste paragraph
x
66
ESRS E5-5
39
Hazardous waste and radioactive
waste
x
66
ESRS2 SBM-3 -
S1
14 (f)
Risk of incidents of forced labour
x
Not
material
ESRS2 SBM-3 -
S1
14 (g)
Risk of incidents of child labour
x
Not
material
ESRS S1-1
20
Human rights policy commitments
x
67
ESRS S1-1
21
Due diligence policies on issues
addressed by the fundamental
International Labor Organisation
Conventions 1 to 8
x
67
ESRS S1-1
22
Processes and measures for
preventing trafficking in human beings
x
67
ESRS S1-1
23
Workplace accident prevention policy
or management system
x
67
ESRS S1-3
32 (c)
Grievance/complaints handling
mechanisms
x
70
ESRS S1-14
88 (b)
and (c)
Number of fatalities and number and
rate of work-related accidents
x
x
76
ESRS S1-14
88 (e)
Number of days lost to injuries,
accidents, fatalities or illness
x
76
ESRS S1-16
97 (a)
Unadjusted gender pay gap
x
x
Not
material
ESRS S1-16
97 (b)
Excessive CEO pay ratio
x
Not
material
ESRS S1-17
103
(a)
Incidents of discrimination
x
Not
material
ESRS S1-17
104
(a)
Non-respect of UNGPs on Business
and Human Rights and OECD
x
x
Not
material
ESRS2 SBM-3 –
S2
11 (b)
Significant risk of child labour or
forced labour in the value chain
x
Not
material
ESRS S2-1
17
Human rights policy commitments
x
Not
material
ESRS S2-1
18
Policies related to value chain
x
Not
material
ESRS S2-1
19
Non-respect of UNGPs on Business
and Human Rights principles and
OECD guidelines
x
x
Not
material
ESRS S2-1
19
Due diligence policies on issues
addressed by the fundamental
International Labor Organisation
Conventions 1 to 8
x
Not
material
ESRS S2-4
36
Human rights issues and incidents
connected to its upstream and
downstream value chain
x
Not
material
ESRS S3-1
16
Human rights policy commitments
x
Not
material
ESRS S3-1
17
Non-respect of UNGPs on Business
and Human Rights, ILO principles or
and OECD
x
x
Not
material
ESRS S3-4
36
Human rights issues and incidents
x
Not
material
ESRS S4-1
16
Policies related to consumers and end-
users
x
Not
material
ESRS S4-1
17
Non-respect of UNGPs on Business
and Human Rights and OECD
guidelines
x
x
Not
material
ESRS S4-4
35
Human rights issues and incidents
x
Not
material
ESRS G1-1
10 (b)
United Nations Convention against
Corruption
x
Not
material
ESRS G1-1
10 (d)
Protection of whistleblowers
x
79
ESRS G1-4
24 (a)
Fines for violation of anticorruption
and anti-bribery laws
x
x
Not
material
ESRS G1-4
24 (b)
Standards of anti- corruption and anti-
bribery
x
Not
material
Directors’ Report and Financial Statements 2025 | 87
Disclosure
Requirement
and
related datapoint
SFDR reference
Pillar 3 reference
Benchmark
regulation
reference
EU Climate Law
ESRS 2 GOV-1 Board's gender
diversity paragraph 21 (d)
Indicator number 13 of
Table #1 of Annex 1
Commission
Delegated
Regulation
(EU)
2020/1816, Annex II
ESRS 2 GOV-1 Percentage of
board
members
who
are
independent paragraph 21 (e)
Delegated Regulation (EU)
2020/1816, Annex II
ESRS 2 GOV-4 Statement on
due diligence paragraph 30
Indicator
number
10
Table #3 of Annex 1
ESRS 2 SBM-1 Involvement in
activities related to fossil fuel
activities paragraph 40 (d) i
Indicators number 4 Table
#1 of Annex 1
Article
449a
Regulation
(EU)
No
575/2013;
Commission
Implementing
Regulation (EU) 2022/2453
Table
1:
Qualitative
information
on
Environmental
risk
and
Table
2:
Qualitative
information on Social risk
Delegated Regulation (EU)
2020/1816, Annex II
ESRS 2 SBM-1 Involvement in
activities
related
to
chemical
production paragraph 40 (d) ii
Indicator number 9 Table
#2 of Annex 1
Delegated Regulation (EU)
2020/1816, Annex II
ESRS 2 SBM-1 Involvement in
activities
related
to
controversial
weapons
paragraph 40 (d) iii
Indicator
number
14
Table #1 of Annex 1
Delegated Regulation (EU)
2020/1818,
Article
12(1)
Delegated Regulation (EU)
2020/1816, Annex II
ESRS 2 SBM-1 Involvement in
activities related to cultivation
and
production
of
tobacco
paragraph 40 (d) iv
Delegated Regulation (EU)
2020/1818,
Article
12(1)
Delegated Regulation (EU)
2020/1816, Annex II
ESRS E1-1 Transition plan to
reach climate neutrality by 2050
paragraph 14
Regulation
(EU)
2021/1119,
Article
2(1)
ESRS E1-1 Companies excluded
from Paris-aligned Benchmarks
paragraph 16 (g)
Article
449a
Regulation
(EU)
No
575/2013;
Commission
Implementing
Regulation (EU) 2022/2453
Template 1: Banking book-
Climate Change transition
risk:
Credit
quality
of
exposures
by
sector,
emissions
and
residual
maturity
Delegated Regulation (EU)
2020/1818, Article 12.1 (d)
to (g), and Article 12.2
ESRS
E1-4
GHG
emission
reduction targets paragraph 34
Indicator number 4 Table
#2 of Annex 1
Article
449a
Regulation
(EU)
No
575/2013;
Commission
Implementing
Regulation (EU) 2022/2453
Template 3: Banking book –
Climate
change
transition
risk: alignment metrics
Delegated Regulation (EU)
2020/1818, Article 6
ESRS E1-5 Energy consumption
from
fossil
sources
disaggregated by sources (only
high
climate
impact
sectors)
paragraph 38
Indicator number 5 Table
#1 and Indicator n. 5 Table
#2 of Annex 1
ESRS E1-5 Energy consumption
and mix paragraph 37
Indicator number 5 Table
#1 of Annex 1
ESRS
E1-5
Energy
intensity
associated with activities in high
climate
impact
sectors
paragraphs 40 to 43
Indicator number 6 Table
#1 of Annex 1
ESRS E1-6 Gross Scope 1, 2, 3,
and
Total
GHG
emissions
paragraph 44
Indicators number 1 and 2
Table #1 of Annex 1
Article
449a;
Regulation
(EU)
No
575/2013;
Commission
Implementing
Regulation (EU) 2022/2453
Delegated Regulation (EU)
2020/1818, Article 5(1), 6
and 8(1)
Directors’ Report and Financial Statements 2025 | 88
Template 1: Banking book –
Climate
change
transition
risk:
Credit
quality
of
exposures
by
sector,
emissions
and
residual
maturity
ESRS
E1-6
Gross
GHG
emissions intensity paragraphs
53 to 55
Indicators number 3 Table
#1 of Annex 1
Article
449a
Regulation
(EU)
No
575/2013;
Commission
Implementing
Regulation (EU) 2022/2453
Template 3: Banking book –
Climate
change
transition
risk: alignment metrics
Delegated Regulation (EU)
2020/1818, Article 8(1)
ESRS E1-7 GHG removals and
carbon credits paragraph 56
Regulation
(EU)
2021/1119,
Article
2(1)
ESRS
E1-9
Exposure
of
the
benchmark portfolio to climate-
related physical risks paragraph
66
Delegated Regulation (EU)
2020/1818,
Annex
II
Delegated Regulation (EU)
2020/1816, Annex II
ESRS E1-9 Disaggregation of
monetary amounts by acute and
chronic physical risk paragraph
66
(a)
ESRS
E1-9
Location
of
significant
assets
at
material
physical risk paragraph 66 (c)
Article
449a
Regulation
(EU)
No
575/2013;
Commission
Implementing
Regulation (EU) 2022/2453
paragraphs
46
and
47;
Template 5: Banking book -
Climate
change
physical
risk: Exposures subject to
physical risk.
ESRS E1-9 Breakdown of the
carrying value of its real estate
assets
by
energy-efficiency
classes paragraph 67 (c)
Article
449a
Regulation
(EU)
No
575/2013;
Commission
Implementing
Regulation (EU) 2022/2453
paragraph
34;Template
2:Banking
book
-Climate
change transition risk: Loans
collateralised by immovable
property - Energy efficiency
of the collateral
ESRS E1-9 Degree of exposure
of
the
portfolio
to
climate-
related opportunities paragraph
69
Delegated Regulation (EU)
2020/1818, Annex II
ESRS
E2-4
Amount
of
each
pollutant listed in Annex II of the
E- PRTR Regulation (European
Pollutant Release and Transfer
Register) emitted to air, water
and soil, paragraph 28
Indicator number 8 Table
#1 of Annex 1 Indicator
number 2 Table #2
of
Annex 1 Indicator number
1 Table #2 of Annex 1
Indicator number 3 Table
#2 of Annex 1
ESRS E3-1 Water and marine
resources paragraph 9
Indicator number 7 Table
#2 of Annex 1
ESRS
E3-1
Dedicated
policy
paragraph 13
Indicator number 8 Table
2 of Annex 1
ESRS E3-1 Sustainable oceans
and seas paragraph 14
Indicator
number
12
Table #2 of Annex 1
ESRS E3-4 Total water recycled
and reused paragraph 28 (c)
Indicator
number
6.2
Table #2 of Annex 1
ESRS
E3-4
Total
water
consumption
in
m3
per
net
revenue
on
own
operations
paragraph 29
Indicator
number
6.1
Table
#2
of
Annex 1
ESRS 2- IRO 1 - E4 paragraph 16
(a) i
Indicator number 7 Table
#1 of Annex 1
ESRS 2- IRO 1 - E4 paragraph 16
(b)
Indicator
number
10
Table #2 of Annex 1
ESRS 2- IRO 1 - E4 paragraph 16
(c)
Indicator
number
14
Table #2 of Annex 1
ESRS E4-2 Sustainable land /
agriculture practices or policies
paragraph 24 (b)
Indicator
number
11
Table #2 of Annex 1
Directors’ Report and Financial Statements 2025 | 89
ESRS E4-2 Sustainable oceans /
seas
practices
or
policies
paragraph 24 (c)
Indicator
number
12
Table #2 of Annex 1
ESRS E4-2 Policies to address
deforestation paragraph 24 (d)
Indicator number 15Table
#2 of Annex 1
ESRS E5-5 Non-recycled waste
paragraph 37 (d)
Indicator
number
13
Table #2 of Annex 1
ESRS E5-5 Hazardous waste and
radioactive waste paragraph 39
Indicator number 9 Table
#1 of Annex 1
ESRS 2- SBM3 - S1 Risk of
incidents
of
forced
labor
paragraph 14 (f)
Indicator
number
13
Table #3 of Annex I
ESRS 2- SBM3 - S1 Risk of
incidents
of
child
labor
paragraph 14 (g)
Indicator
number
12
Table #3 of Annex I
ESRS S1-1 Human rights policy
commitments paragraph 20
Indicator number 9 Table
#3 and Indicator number
11 Table #1 of Annex I
ESRS S1-1 Due diligence policies
on
issues
addressed
by
the
fundamental
International
Labour
Organisation
Conventions 1 to 8, paragraph
21
Delegated Regulation (EU)
2020/1816, Annex II
ESRS
S1-1
Processes
and
measures
for
preventing
trafficking
in
human
beings
paragraph 22
Indicator number 1 Table
#3 of Annex I
ESRS S1-1 Workplace accident
prevention
policy
or
management system paragraph
23
Indicator number 1 Table
#3 of Annex I
ESRS
S1-3
Grievance/complaints
handling
mechanisms paragraph 32 (c)
Indicator number 5 Table
#3 of Annex I
ESRS S1-14 Number of fatalities
and number and rate of work-
related accidents paragraph 88
(b) and (c)
Indicator number 2 Table
#3 of Annex I
Delegated Regulation (EU)
2020/1816, Annex II
ESRS S1-14 Number of days lost
to injuries, accidents, fatalities or
illness paragraph 88 (e)
Indicator number 3 Table
#3 of Annex I
ESRS S1-16 Unadjusted gender
pay gap paragraph 97 (a)
Indicator
number
12
Table #1 of Annex I
Delegated Regulation (EU)
2020/1816, Annex II
ESRS S1-16 Excessive CEO pay
ratio paragraph 97 (b)
Indicator number 8 Table
#3 of Annex I
ESRS
S1-17
Incidents
of
discrimination paragraph 103 (a)
Indicator number 7 Table
#3 of Annex I
ESRS
S1-17
Non-respect
of
UNGPs on Business and Human
Rights
and
OECD
paragraph
104 (a)
Indicator
number
10
Table
#1
and
Indicator n. 14 Table #3 of
Annex I
Delegated Regulation (EU)
2020/1816,
Annex
II
Delegated Regulation (EU)
2020/1818 Art 12 (1)
ESRS 2- SBM-3 – S2 Significant
risk of child labour or forced
labour
in
the
value
chain
paragraph 11 (b)
Indicators number 12 and
n. 13 Table #3 of Annex I
ESRS S2-1 Human rights policy
commitments paragraph 17
Indicator number 9 Table
#3 and Indicator n. 11
Table #1 of Annex 1
ESRS S2-1 Policies related to
value chain workers paragraph
18
Indicator number 11 and
n. 4 Table #3 of Annex 1
ESRS
S2-1Non-
respect
of
UNGPs
on
Business
and
Human
Rights
principles
and
OECD guidelines paragraph 19
Indicator
number
10
Table #1 of Annex 1
Delegated Regulation (EU)
2020/1816,
Annex
II
Delegated Regulation (EU)
2020/1818, Art 12 (1)
ESRS S2-1 Due diligence policies
on
issues
addressed
by
the
fundamental International Labor
Organisation Conventions 1 to
8, paragraph 19
Delegated Regulation (EU)
2020/1816, Annex II
Directors’ Report and Financial Statements 2025 | 90
ESRS S2-4 Human rights issues
and incidents connected to its
upstream and downstream value
chain paragraph 36
Indicator
number
14
Table #3 of Annex 1
ESRS S3-1 Human rights policy
commitments paragraph 16
Indicator number 9 Table
#3
of
Annex
1
and
Indicator
number
11
Table #1 of Annex 1
ESRS
S3-1
non-respect
of
UNGPs on Business and Human
Rights, ILO principles or and
OECD guidelines paragraph 17
Indicator
number
10
Table #1 Annex 1
Delegated Regulation (EU)
2020/1816,
Annex
II
Delegated Regulation (EU)
2020/1818, Art 12 (1)
ESRS S3-4 Human rights issues
and incidents paragraph 36
Indicator
number
14
Table #3 of Annex 1
ESRS S4-1 Policies related to
consumers
and
end-users
paragraph 16
Indicator number 9 Table
#3 and Indicator number
11 Table #1 of Annex 1
ESRS
S4-1
Non-respect
of
UNGPs on Business and Human
Rights
and
OECD
guidelines
paragraph 17
Indicator
number
10
Table #1 of Annex 1
Delegated Regulation (EU)
2020/1816,
Annex
II
Delegated Regulation (EU)
2020/1818, Art 12 (1)
ESRS S4-4 Human rights issues
and incidents paragraph 35
Indicator
number
14
Table #3 of Annex 1
ESRS
G1-1
United
Nations
Convention against Corruption
paragraph 10 (b)
Indicator
number
15
Table #3 of Annex 1
ESRS
G1-1
Protection
of
whistle-blowers
paragraph
10
(d)
Indicator number 6 Table
#3 of Annex 1
ESRS G1-4 Fines for violation of
anti-corruption and anti-bribery
laws paragraph 24 (a)
Indicator
number
17
Table #3 of Annex 1
Delegated Regulation (EU)
2020/1816, Annex II)
ESRS G1-4 Standards of anti-
corruption
and
anti-bribery
paragraph 24 (b)
Indicator
number
16
Table #3 of Annex 1
Directors’ Report and Financial Statements 2025 | 91
Financial statements
Consolidated financial statements
Consolidated statement of income (IFRS)
EUR million
Note
2025
2024
Net sales
2.1.
Cost of goods sold
-3,266.2
-3,344.7
Gross profit
Other operating income
2.4.
Sales and marketing
-98.1
-104.8
Research and development
-44.0
-34.7
Administration expenses
-304.4
-297.3
Other operating expenses
2.5.
-8.9
-13.7
Earnings before interest and taxes
2.2., 2.3.
Financial income
5.1.
Financial expenses
5.1.
-77.2
-88.3
Profit before taxes
Income tax expense
2.6.
-62.2
-68.7
Profit for the period
Attributable to:
Equity holders of the parent company
Non-controlling interest
EUR
EPS attributable to equity holders of the parent company
2.7.
Diluted EPS attributable to equity holders of the parent company
2.7.
Directors’ Report and Financial Statements 2025 | 92
Group statement of comprehensive income (IFRS)
EUR million
Note
2025
2024
Profit for the period
Other comprehensive income:
Items that will not be reclassified to profit or loss
Remeasurements on defined benefit plans
2.2.
Income taxes related to items that will not be reclassified
2.6.
-7.6
-0.7
Total
Items that may be reclassified subsequently to profit or loss
Translation differences
-260.8
Equity hedges
-15.8
Cash flow hedges
-4.5
-1.8
Cash flow hedges recognized in other comprehensive income
-2.0
Cash flow hedges transferred to profit or loss
-0.1
-0.4
Cash flow hedges transferred to statement of financial position
-2.3
-2.3
Income taxes related to items that may be reclassified
2.6.
Total
-243.7
Other comprehensive income, net of tax
-228.5
Total comprehensive income
-29.7
Attributable to:
Equity holders of the parent company
-26.4
Non-controlling interest
-3.4
Directors’ Report and Financial Statements 2025 | 93
Consolidated statement of financial position (IFRS)
Assets
EUR millio
n
Note
2025
2024
Non-current assets
Goodwill
3.2., 3.3.
Intangible assets
3.2.
Tangible assets
3.4.
Other investments
5.6.
Interest-bearing receivables
5.2., 5.6.
Deferred tax assets
2.6.
Employee benefit assets
2.2.
Other non-current assets
Current assets
Inventory
4.1.
Interest-bearing receivables
5.2.
Current tax assets
Trade and other current receivables
4.2., 5.6.
Cash and cash equivalents
5.3., 5.6.
Assets held for sale
3.5.
Total assets
Equity and liabilities
EUR million
Note
2025
2024
Share capital
5.4.
Premium fund
5.4.
Treasury shares
5.4.
-25.7
-27.6
Translation differences
5.4.
-246.5
-16.5
Fair value and other reserves
5.4.
-34.8
-46.6
Retained earnings
Total equity attributable to equity holders of the parent company
Non-controlling interest
Total equity
Non-current liabilities
Interest-bearing liabilities
5.5., 5.6.
Deferred tax liabilities
2.6.
Employee benefit liabilities
2.2.
Provisions
4.3.
Other non-current liabilities
Current liabilities
Interest-bearing liabilities
Current portion of long term loans
5.5., 5.6.
Short-term loans
5.5., 5.6.
Provisions
4.3.
Current tax liabilities
Trade and other current liabilities
4.4., 4.5., 5.6.
Total liabilities
Total equity and liabilities
Directors’ Report and Financial Statements 2025 | 94
Consolidated statement of changes in equity (IFRS)
Attributable to equity holders of the parent compan
y
EUR million
Note
Share
capital
Share issue
premium
Treasur
y
shares
Translation
differences
Fair value
and
other
reserves
Retained
earnings
Total
Non-
controlling
interest
Total
equity
Balance on January 1, 2024
-29.6
-102.1
-48.1
Dividends
2.7.
-110.0
-110.0
-11.1
-121.1
Share-based payments
6.3.
-3.0
-0.9
-0.9
Total comprehensive income for the year
Acquisition of non-controlling interest
Other Changes
-1.2
-1.2
-0.8
Balance on December 31, 2024
-27.6
-16.5
-46.6
Dividends
2.7.
-115.5
-115.5
-0.8
-116.2
Share-based payments
6.3.
-8.5
-6.6
-6.6
Total comprehensive income for the year
-230.0
-26.4
-3.4
-29.7
Acquisition of non-controlling interest
-1.6
-0.1
Other Changes
-42.5
-42.5
-41.3
Balance on December 31, 2025
-25.7
-246.5
-34.8
Directors’ Report and Financial Statements 2025 | 95
Consolidated statement of cash flows (IFRS)
EUR million
Note
2025
2024
Profit for the period
Adjustments
Depreciation, amortization and impairments
2.3.
Gain/loss from disposal of assets
-0.6
-12.9
Financial expense
/
-income
5.1.
Income tax expense
2.6.
Other adjustments
-13.7
-2.7
Change in inventory
4.1.
-27.2
Change in non-interest bearing receivables
-38.8
Change in non-interest bearing payables
-78.1
Dividends received
Interest received
Interest paid
-71.7
-69.6
Other financial expense and income
-1.9
-8.2
Taxes paid
2.6.
-38.9
-87.0
Net cash flows from operating activities
Capital expenditure
3.2., 3.4.
-171.9
-247.9
Proceeds from selling tangible assets
3.4.
Acquired subsidiaries and assets
3.1.
-14.5
Change in other investment
-1.0
-0.6
Proceeds from long-term deposits
Payment of long-term deposits
-1.6
Proceeds from short-term deposits
Payment of short-term deposits
-17.5
-19.9
Net cash flows from investing activities
-182.1
-231.8
Proceeds from long-term borrowings
Repayment of long-term borrowings
-234.2
-99.3
Change in short-term loans
-179.9
-162.2
Acquisition of non-controlling interest
-0.1
Dividends paid to the owners of the parent
-115.5
-110.0
Dividends paid to non-controlling interests
-0.8
-11.3
Net cash flows from financing activities
5.5.
-194.8
-247.2
Change in cash and cash equivalents
-31.1
Cash flow based
-46.3
Translation difference
-38.6
Cash and cash equivalents period start
Cash and cash equivalents period end
5.3.
The above Consolidated Statement of Cash Flow should be read in conjunction with the accompanying notes.
Directors’ Report and Financial Statements 2025 | 96
Notes to the consolidated financial statements
1. Basis of preparation
and expertise are in paperboard based foodservice packaging, smooth and rough molded fiber packaging as well as flexible
packaging. Huhtamaki offers standardized products, customized designs as well as total packaging systems and solutions.
Main customers are food and beverage companies, quick service and fast casual restaurants, foodservice operators, fresh
The parent company, Huhtamäki Oyj , is a public limited liability company domiciled in Espoo, Finland and listed on NASDAQ
OMX Helsinki Ltd. The address of its registered office is Revontulenkuja 1, 02100 Espoo, Finland . A copy of consolidated
financial statements is available at Group’s website www.huhtamaki.com.
According to the Finnish Companies Act shareholders decide on the adoption of financial statements at the general
(IFRS) and the IAS and IFRS standards as well as SIC- and IFRIC- interpretations which were valid on December 31, 2025.
IFRS, referred to in the Finnish Accounting Act and in ordinances issued based on the provisions of said Act, refer to the
standards and their interpretations adopted in accordance with the procedure laid down in regulations (EC) No
The consolidated financial statements have been prepared under the historical cost convention except for other
investments at fair value through other comprehensive income, financial instruments at fair value through profit or loss,
derivative instruments and cash-settled share-based payment arrangements that are measured at fair value. The
preparation of financial statements in accordance with IFRS requires the use of certain critical accounting estimates and
judgements. The use of these assumptions and judgements is described in more detail in Note 1.6. Use of significant
estimates and judgements. The consolidated financial statements are presented in millions of euros. Figures presented are
The following amended standard has been adopted as of January 1, 2025:
•
Revised IAS 21 The Effects of Changes in Foreign Exchange Rates (Lack of Exchangeability): The amendments
require to apply a consistent approach in assessing whether a currency can be exchanged into another currency
and, when it cannot, in determining the exchange rate to use and the disclosures to provide. The amendments had
no impact on the financial statements.
The Group plans to adopt the following amendments in 2026 and they are not expected to have material impact on the
consolidated financial statements:
•
Revised IFRS 9 Financial Instruments and IFRS 7 Financial Instruments: Disclosures (Classification and
Measurement of Financial Instruments): The amendments clarify that an entity is required to apply settlement
date accounting when derecognising a financial asset or a financial liability; and to permit an entity to deem a
financial liability that is settled using an electronic payment system to be discharged before the settlement date if
specified criteria are met. The amendments clarify the application guidance for assessing the contractual cash flow
characteristics of financial assets, including financial assets with contractual terms that could change the timing or
amount of contractual cash flows, for example, those with environmental, social and governance (ESG)-linked
features, financial assets with non-recourse features and financial assets that are contractually linked instruments.
•
Revised IFRS 9 Financial Instruments and IFRS 7 Financial Instruments: Disclosures (Contracts Referencing to
Nature-dependent Electricity): The amendments support the application of the own-use exemption to physical
Directors’ Report and Financial Statements 2025 | 97
power purchase agreements (PPAs), provided the company has been, and is expected to remain, a net purchaser
of electricity throughout the contract term. Subject to certain conditions, the amendments allow virtual PPAs and
physical PPAs that do not qualify for the own-use exemption to be designated as hedging instruments within cash
flow hedge accounting relationships. The amendments also introduce new disclosure requirements to help
investors assess the impact of PPAs on a company’s financial performance and cash flows.
•
Annual improvements to IFRS Accounting Standards (Volume 11): The annual improvements include minor
amendments to five standards.
The Group plans to adopt the following amendments later than 2026 (amendments not yet endorsed by the European
Union) and the assessment of the impacts is on-going:
•
Revised IAS 21 The Effects of Changes in Foreign Exchange Rates (Translation to a Hyperninflationary
Presentation Currency): The amendments that clarify how companies should translate financial statements from
a non-hyperinflationary currency into a hyperinflationary one.
•
New IFRS 18 Presentation and Disclosure in the Financial Statements: IFRS 18 will replace IAS 1 Presentation of
Financial Statements. The key new requirements are as follows: 1) Income and expenses in the income statement
to be classified into three new defined categories (operating, investing and financing) and two new subtotals
(“Operating profit or loss” and “Profit or loss before financing and income tax”), 2) Disclosures about management-
defined performance measures (MPMs) in the financial statements. MPMs are subtotals of income and expenses
used in public communications to communicate management’s view of the company’s financial performance, and
3) Disclosure of information based on enhanced general requirements on aggregation and disaggregation. In
addition, specific requirements to disaggregate certain expenses, in the notes, will be required for companies that
The consolidated financial statements include the parent company Huhtamäki Oyj and all its subsidiaries where over 50%
of the subsidiary’s voting rights are controlled directly or indirectly by the parent company, or the parent company is
otherwise in control of the company for example based on Shareholder’s Agreement.
Acquired subsidiaries are accounted for using the acquisition method. Subsidiaries are fully consolidated from the date on
which the control is transferred to the Group. Divested subsidiaries are included up to the date the control ceases.
All intercompany transactions, receivables, liabilities and unrealized profits, as well as distribution of profits within the
Group, are eliminated.
Profit and loss for the period attributable to equity holders of the parent company and to non-controlling interest is
presented in the income statement. Comprehensive income attributable to equity holders of the parent company and to
non-controlling interest is presented in the statement of comprehensive income. Comprehensive income is attributed to
the owners of the parent company and to the non-controlling interest even if this results in the non-controlling interest
Associated companies, where the Group holds voting rights of typically between 20% and 50% and in which the Group has
significant influence, but not control, over the financial and operating policies, are consolidated using the equity method.
Joint arrangements are companies over whose activities the Group has joint control, established by contractual agreement.
The joint arrangements classified as joint ventures are consolidated using the equity method. When the Group’s share of
losses exceeds the carrying amount of the equity accounted investment, the carrying amount is reduced to nil and
recognition of further losses is discontinued except to the extent that the Group has incurred obligations in respect of the
equity-accounted investments. The Group’s share of result of equity-accounted investments is presented as a separate
item above Earnings before interest and taxes. Correspondingly the Group’s share of changes in other comprehensive
Directors’ Report and Financial Statements 2025 | 98
Foreign currency transactions are translated into functional currency at the rates of exchange prevailing at the date of the
transaction. The consolidated financial statements are presented in EUR, which is the Group’s presentation currency and
the parent company’s functional currency. Monetary assets and liabilities are translated at the rates of exchange at the
reporting period closing date. The exchange rate used at the reporting period closing date is the rate of the date prior to
the last working day of the reporting period closing date. Foreign exchange differences arising from translation are
recognized in the income statement. Foreign exchange gains and losses relating to operating activities are recognized in
the same account as the underlying transaction above Earnings before interest and taxes. Foreign exchange differences
relating to financial liability are recognized in financial income or expense except for those currency differences that relate
to loans designated as a hedge of the net investment in foreign operations. Those currency differences are recognized as
translation differences in other comprehensive income.
On consolidation the income statements of foreign entities are translated into euros at the average exchange rate for the
accounting period. The statements of financial position of foreign entities are translated at the exchange rate of reporting
period closing date. The exchange rate used at the reporting period closing date is the rate of the date prior to the last
working day of the reporting period closing date. Differences resulting from the translation of income statement items at
the average rate and items in the statement of financial position at the closing rate are recognized as part of translation
differences in other comprehensive income.
On consolidation, exchange differences arising on the translation of the net investments in foreign subsidiaries, associated
companies and joint ventures are recognized as translation differences in other comprehensive income. A similar
treatment is applied to intragroup permanent loans, which in substance are equity. On disposal of a foreign entity,
Preparation of the consolidated financial statements in accordance with IFRS requires management to make estimates and
judgements affecting the reported amounts of assets, liabilities, income and expenses, as well as the disclosure of
contingent assets and liabilities. The estimates and judgements are based on historical experience and other factors that
are believed to be reasonable under the circumstances, which form the basis of making the assumptions about carrying
values. These estimates and judgements are reviewed on an ongoing basis. Possible effect of the changes in assumptions
are recognized during the period they are changed.
The following items and related notes include significant estimates and judgements that are subject to a risk of changes in
the carrying values within next financial year: impairment testing (Note 3.3. Goodwill impairment testing), measurement
of pension liabilities (Note 2.2. Employee benefits), litigation and tax risks (Notes 2.6. Income taxes and 6.6. Litigations),
restructuring plans (Note 4.3. Provisions), provision for inventory obsolescence (Note 4.1. Inventories), probability of
deferred tax assets being recovered against future taxable profits (Note 2.6. Income taxes), business combinations related
contingent considerations (Note 5.5. Interest-bearing liabilities) and purchase price allocations (Note 3.1. Business
Directors’ Report and Financial Statements 2025 | 99
2. Financial performance
The Group’s operating segments are strategic business units which produce different products and which are managed as
separate units. The Group’s segment information is based on internal management reporting. The Group has three
business areas which are organized into four reporting segments:
Foodservice Packaging:
•
Foodservice Packaging:
Foodservice paper and plastic disposable tableware is supplied to foodservice operators, fast food
restaurants, coffee shops and FMCG companies. The segment has production in Europe, Africa, Middle East, Asia and Oceania.
•
North America:
The segment serves local markets in North America with Chinet® disposable tableware products, foodservice
packaging products, as well as ice cream containers and other consumer goods packaging products. The segment has rigid
paper, plastic and molded fiber manufacturing units in the United States and Mexico.
Flexible Packaging:
Flexible packaging is used for a wide range of consumer products including food, pet food, hygiene and health care
products. The segment serves global markets from production units in Europe, Middle East, Asia and South America.
Fiber Packaging:
Recycled fiber is used to make fresh product packaging, such as egg and fruit packaging. The segment has production in
Europe, Oceania, Africa and South America.
ACCOUNTING PRINCIPLES
a segment’s potential to generate earnings before interest and taxes (EBIT), operating cash flow and return on net assets.
In management’s opinion these are the most suitable key indicators for analyzing the segments’ performance. The Chief
Executive Officer is the chief operating decision maker.
Segment’s net assets include items directly attributable to a segment and items which can be allocated on a reasonable
basis. Net assets comprise intangible assets (including goodwill), tangible assets, equity-accounted investments,
inventories, trade and other receivables, accrued income and prepayments, trade payables, other payables and accrued
expense. Capital expenditure includes acquisition of tangible and intangible assets which will be used during more than one
reporting period. Intersegment pricing is based on fair market value.
Other activities include unallocated corporate costs and royalty income and related net assets. Unallocated assets and
Group income statement and balance sheet items 2025
Segments 2025 |
||||||
Foodservice |
North |
Flexible |
Fiber |
Segments |
||
EUR millio n |
Note |
Packaging |
America |
Packaging |
Packaging |
total |
External net sales |
932.5 |
1,403.8 |
1,248.8 |
375.0 |
3,960.2 |
|
Intersegment net sales |
3.7 |
1.5 |
0.7 |
4.6 |
-10.5 |
|
Net sales |
936.2 |
1,405.3 |
1,249.5 |
379.7 |
3,949.7 |
|
EBIT |
38.1 |
148.8 |
101.5 |
50.1 |
338.5 |
|
Net Assets |
3.1., 3.2., 3.4., 4. |
807.0 |
1,037.3 |
1,214.9 |
295.0 |
3,354.3 |
Capital Expenditure |
29.1 |
55.2 |
34.4 |
52.7 |
171.4 |
|
Depreciation and amortization |
2.3. |
142.1 |
68.3 |
57.9 |
21.9 |
290.2 |
Directors’ Report and Financial Statements 2025 | 100
Segments 2024
EUR million | Note | Foodservice | North | Flexible | Fiber | Segments |
Packaging | America | Packaging | Packaging | total | ||
External net sales | 988.1 | 1,458.7 | 1,321.8 | 357.6 | 4,126.3 | |
Intersegment net sales | 1.4 | 1.4 | 0.7 | 5.6 | -9.1 | |
Net sales | 989.6 | 1,460.1 | 1,322.5 | 363.2 | 4,117.1 | |
EBIT | 75.9 | 195.9 | 77.7 | 41.3 | 390.7 | |
Net Assets | 3.1., 3.2., 3.4., 4. | 928.9 | 1,073.0 | 1,344.5 | 325.4 | 3,671.9 |
Capital Expenditure | 66.3 | 83.9 | 69.0 | 28.1 | 247.4 | |
Depreciation and amortization | 2.3. | 72.1 | 65.0 | 61.5 | 22.7 | 221.3 |
Intersegment net sales are eliminated on consolidation.
ACCOUNTING PRINCIPLES
The revenue is recognized at an amount of consideration to which the Group expects to be entitled in exchange for
transferring promised goods or services related to the goods to a customer. The transaction price is usually fixed but may
also include variable considerations such as volume or cash discounts. The variable considerations are estimated using the
most likely value method if not yet realized in the end of reporting period. The revenue further adjusted with indirect sales
taxes and exchange rate differences relating to sales in foreign currency is presented as net sales.
Typical contracts with customers include a sale of goods to a customer with only one performance obligation. The revenue
recognition occurs at a point in time, when the control of the goods is transferred to the customer according to the delivery
Earnings before interest and taxes consists of net sales less costs of goods sold, sales and marketing expenses, research
and development expenses, administration expenses, other operating expenses plus other operating income and share of
result of equity-accounted investments. Foreign exchange gains and losses and changes of fair value of the derivative
Reconciliation calculations
Result
EUR million | 2025 | 2024 |
Total EBIT for reportable segments | 338.5 | 390.7 |
EBIT for other activities | -17.9 | -18.5 |
Net financial items | -59.5 | -71.8 |
Profit before taxes | 261.0 | 300.5 |
Assets
EUR million | 2025 | 2024 |
Total assets for reportable segments | 3,968.3 | 4,350.2 |
Assets in other activities | 38.1 | 36.5 |
Unallocated assets | 559.6 | 506.8 |
Group's total assets | 4,565.9 | 4,893.5 |
Liabilities
Directors’ Report and Financial Statements 2025 | 101
EUR million |
2025 |
2024 |
Total liabilities for reportable segments |
623.7 |
760.8 |
Liabilities in other activities |
39.6 |
38.0 |
Unallocated liabilities |
1,972.5 |
1,970.7 |
Group's total liabilities |
2,635.8 |
2,769.4 |
Geographical information
In presenting information on geographical basis, revenues are reported based on the selling entity's location. Assets are
reported based on the geographical location of the assets. Non-current assets are presented excluding financial
instruments, deferred tax assets and post-employment benefit assets.
2025
EUR million |
External net sales |
Non-current |
assets |
||
United States |
1,403.9 |
844.9 |
Germany |
463.3 |
360.4 |
The United Kingdom |
330.9 |
204.2 |
India |
231.3 |
159.8 |
Turkey |
156.2 |
173.0 |
Australia |
151.4 |
83.1 |
Thailand |
147.0 |
129.7 |
South Africa |
122.8 |
81.2 |
Poland |
121.8 |
72.7 |
Spain |
93.6 |
73.1 |
Other countries (excl. Finland) |
673.7 |
531.6 |
Finland |
64.1 |
66.7 |
Total |
3,960.2 |
2,780.5 |
2024
EUR million |
External net sales |
Non-current |
assets |
||
United States |
1,458.3 |
894.2 |
Germany |
457.2 |
425.1 |
The United Kingdom |
320.9 |
214.3 |
India |
256.3 |
186.8 |
Türkiye |
170.3 |
202.9 |
Australia |
170.6 |
89.1 |
Thailand |
154.9 |
132.7 |
Poland |
122.6 |
71.4 |
South Africa |
122.5 |
77.6 |
Spain |
94.0 |
76.3 |
Other countries (excl. Finland) |
730.2 |
571.3 |
Finland |
68.5 |
71.2 |
Total |
4,126.3 |
3,013.0 |
Personnel expenses
Directors’ Report and Financial Statements 2025 | 102
EUR million |
Note |
2025 |
2024 |
Wages and Salaries |
717.3 |
721.4 |
|
Compulsory social security contributions |
74.5 |
76.0 |
|
Pensions |
|||
Defined benefit plans |
6.4 |
6.4 |
|
Defined contribution plans |
26.0 |
25.1 |
|
Other defined benefit plans |
0.5 |
1.1 |
|
Share-based payments |
6.3. |
-0.1 |
6.2 |
Other personnel costs |
57.7 |
50.1 |
|
Total |
882.4 |
886.3 |
Remuneration paid by the parent company to the members of the Board of Directors as well as the Chief Executive Officer
(CEO) of Huhtamäki Oyj (10 people) amounted to EUR 5.6 million (EUR 5.2 million).
Average number of personnel |
2025 |
2024 |
Group |
17,686 |
17,820 |
Huhtamäki Oyj |
191 |
175 |
See Notes 6.2. Related party transactions, 6.3. Share-based payments, and Remuneration Statement.
Pension plans
The Group has established a number of de
fi
ned benefit plans providing pensions and other post-employment benefits for
its personnel worldwide. The U.S., the UK, Germany and the Netherlands are the countries having major de
fi
ned bene
fi
t
plans comprising approximately 90% of the Group consolidated de
fi
ned bene
fi
t obligation.
The U.S. and the UK de
fi
ned bene
fi
t plans are organized through a pension fund and the German and Dutch defined benefit
plans through an insurance company. The major pension plans are funded and the assets of these plans are segregated
from the assets of the Group.
The subsidiaries’ level of funding of the plans and asset allocation to asset categories meet
local authority requirements.
In the de
fi
ned bene
fi
t pension plans the pensions payable are based on salary level before retirement and number of service
years. Some plans can include early retirement. The calculations for de
fi
ned bene
fi
t obligations and assessment of the fair
value of assets at reporting period closing date have been made by quali
fi
ed actuaries.
The Group has also unfunded post-employment medical bene
fi
t plans, principally in the U.S. The method of accounting,
assumptions and the frequency of valuations are similar to those used for the de
fi
ned bene
fi
t pension schemes.
These defined benefit plans expose the Group to actuarial risks, such as inflation risk, interest rate risk, life expectancy and
market risk.
ACCOUNTING PRINCIPLES
Employee benefits are all forms of consideration given in exchange for service rendered by employees or for the
termination of employment.
The Group companies have various pension and other postemployment benefit plans in accordance with local conditions
and practices worldwide. These plans are classified as either defined contribution plans or defined benefit plans.
In defined contribution plans, the Group pay fixed contributions into a separate entity such as an insurance company. The
Group has no legal or constructive obligations to pay further contributions. The contributions are recognized in the income
statement as personnel expenses in the period to which they relate.
In defined benefit plans, the Group is obligated for the current contributions, but also for sufficiency of the plan assets to
provide agreed benefits for employees. The liability recognized in the statement of financial position is the present value of
defined benefit obligation at the end of the reporting period less the fair value of plan assets. The present value of defined
benefit plan obligation is calculated annually by independent actuaries using projected unit credit method. The present
Directors’ Report and Financial Statements 2025 | 103
value is determined by discounting estimated future cash flows using interest rates of high-quality corporate bonds that
are denominated in the currency in which the benefits will be paid and that have maturity terms approximating to the terms
of the related obligation. The cost of providing defined benefit plans is recognized in the income statement as personnel
expense, when the service is rendered by employees or when a plan amendment or curtailment takes place. The net interest
expense is recognized in the income statement as financial expense. Remeasurements, including actuarial gains or losses,
are recognized through other comprehensive income in shareholder’s equity in the period which they rise and are not
Defined benefit |
Fair value of |
Effect from |
Net defined |
|||||
obligations |
plan assets |
asset ceiling |
benefit liability |
|||||
EUR million |
2025 |
2024 |
2025 |
2024 |
2025 |
2024 |
2025 |
2024 |
Balance at January 1 |
427.1 |
430.8 |
-340.8 |
-338.1 |
- |
- |
86.3 |
92.7 |
Included in Income statement |
||||||||
Current service cost |
6.9 |
7.4 |
6.9 |
7.4 |
||||
Plan amendment and curtailment cost (+) / income (-) |
-0.0 |
- |
-0.0 |
- |
||||
Interest cost (+) / income (-) |
17.9 |
18.2 |
-15.6 |
-15.5 |
2.3 |
2.7 |
||
24.8 |
25.6 |
-15.6 |
-15.5 |
9.2 |
10.2 |
|||
Included in Other comprehensive income |
||||||||
Remeasurements |
||||||||
Actuarial loss (+) / gain (-) arising from |
||||||||
Demographic assumptions |
-0.4 |
-0.2 |
-0.4 |
-0.2 |
||||
Financial assumptions |
-13.2 |
-17.9 |
-13.2 |
-17.9 |
||||
Experience adjustment |
-3.0 |
6.1 |
-3.0 |
6.1 |
||||
Actual return on plan assets less interest income |
-6.1 |
8.6 |
-6.1 |
8.6 |
||||
Changes in asset ceiling less interest |
- |
- |
- |
- |
||||
-16.6 |
-11.9 |
-6.1 |
8.6 |
- |
- |
-22.7 |
-3.4 |
|
Other movements |
||||||||
Benefits paid |
-29.6 |
-30.5 |
22.7 |
23.8 |
-6.8 |
-6.7 |
||
Contribution by employer |
-5.5 |
-4.8 |
-5.5 |
-4.8 |
||||
Contribution by employee |
-0.2 |
-0.2 |
-0.2 |
-0.2 |
||||
Obligations and assets assumed in business combinations |
- |
- |
- |
- |
- |
- |
||
Assets extinguished on plan amendment |
- |
- |
- |
- |
||||
Effect of movements in exchange rates |
-22.4 |
13.1 |
24.1 |
-14.5 |
- |
- |
1.7 |
-1.4 |
Balance at December 31 |
383.2 |
427.1 |
-321.3 |
-340.8 |
- |
- |
61.9 |
86.3 |
Reflected to statement of financial position |
2025 |
2024 |
Employee benefit assets |
59.0 |
63.8 |
Employee benefit liabilities |
120.9 |
150.0 |
61.9 |
86.3 |
Amounts of funded and unfunded obligations |
2025 |
2024 |
Present value of funded obligations |
362.2 |
402.5 |
Present value of unfunded obligations |
21.0 |
24.5 |
383.2 |
427.1 |
Plan assets comprise: |
2025 |
2024 |
European equities |
7.0 |
4.0 |
North American equities |
37.2 |
49.1 |
European debt instruments |
2.2 |
15.4 |
North American debt instruments |
95.4 |
101.1 |
Property |
18.8 |
13.3 |
Insured plans |
82.8 |
84.3 |
Other |
78.0 |
73.5 |
321.3 |
340.8 |
Directors’ Report and Financial Statements 2025 | 104
All equity and debt instruments have quoted prices in active markets.
Expected contribution to defined benefit plans during 2026 is EUR 4.2 million.
The weighted average duration of defined benefit obligation was 11 years (11 years).
Significant actuarial assumptions |
2025 |
2024 |
||||
Discount rate % |
||||||
Europe |
3.1 |
– |
5.5 |
3.1 |
– |
5.4 |
Americas |
5.2 |
– |
9.0 |
5.5 |
– |
9.9 |
Asia, Oceania, Africa |
1.9 |
– |
8.6 |
2.5 |
– |
10.0 |
Annual increase in healthcare costs % |
||||||
Americas |
8.5 |
7.3 |
||||
Asia, Oceania, Africa |
5.2 |
6.2 |
||||
EUR million |
2025 |
2024 |
1% p. increase in discount rate |
-30.6 |
-36.2 |
1% p. decrease in discount rate |
35.6 |
40.4 |
1% p. increase of estimated healthcare cost |
1.3 |
1.4 |
1% p. decrease of estimated healthcare cost |
-1.2 |
-1.2 |
EUR million | 2025 | 2024 |
Depreciation, amortization and impairments by function: | ||
Cost of Goods Sold | 250.6 | 192.6 |
Sales and marketing | 7.4 | 7.8 |
Research and development | 21.4 | 7.6 |
Administration | 13.4 | 14.0 |
Other | - | 1.4 |
Total | 292.8 | 223.4 |
Depreciation, amortization and impairments by asset type: | ||
Land and land improvements | 1.4 | 1.4 |
Buildings | 43.6 | 46.4 |
Machinery and equipment | 208.0 | 144.9 |
Other tangible assets | 8.6 | 10.3 |
Intangible assets | 31.1 | 20.4 |
Total | 292.8 | |
223.4 | ||
Impairments by asset type: | ||
Buildings 1 | 1.0 | - |
Machinery and equipment 1 | 63.7 | - |
Goodwill 1 | - | 1.4 |
Other Intangible assets | 12.1 | - |
Total | 76.8 | 1.4 |
1
During Q2 2025 Huhtamaki made an impairment related to a restructuring in the Foodservice Packaging segment, consolidating production.
Depreciation and amortization
Directors’ Report and Financial Statements 2025 | 105
Depreciation and amortization is recorded on a straight-line basis over the estimated useful lives of the owned tangible
and intangible assets or over the lease term of right-of-use assets. Land is not depreciated.
The estimated useful lives of the owned tangible and intangible assets are (years):
Buildings and other structures | 20–40 |
Machinery and equipment | 5–25 |
Other tanglible assets | 3–12 |
Intangible assets | 3–20 |
Eur million | 2025 | 2024 |
Grants | 1.1 | 0.9 |
Gain on disposal of tangible assets | 2.7 | 21.5 |
Insurance reimbursements for property damage incidents | 7.9 | 2.2 |
Royalty income | 0.2 | 0.2 |
Rental income | 1.3 | 1.0 |
Contractual compensations 1 | 56.0 | - |
Other | 13.0 | 15.5 |
Total | 82.1 | 41.3 |
1
See also Note 3.1. Business combinations.
Other operating income
Other operating income includes gains from disposal of assets and regular incomes, such as royalty income, rental income
and gains relating to business combinations, which have not been derived from primary activities.
Other operating income includes also grants. Government or other grants are recognized in the income statement on a
systematic basis in the same periods in which the expenses are incurred. Investment grants are presented in the statement
EUR million | 2025 | 2024 |
Goodwill impairment 1 | - | 1.4 |
Loss on disposal of tangible assets | 1.8 | 2.4 |
Other | 7.2 | 9.9 |
Total | 8.9 | 13.7 |
1
See Note 3.2. Goodwill and intangible assets.
Auditor’s Fees | ||
EUR million | 2025 | 2024 |
Audit fees | 3.7 | 3.6 |
Other statutory services | 0.3 | 0.5 |
Tax services | - | - |
Other services | 0.1 | 0.2 |
Total | 4.2 | 4.4 |
Directors’ Report and Financial Statements 2025 | 106
KPMG is acting as the principal auditor for Huhtamaki Group. KPMG has also provided other statutory services including
assurance of the sustainability reporting. KPMG network has provided other consultancy services worth of EUR 0.1 million
(EUR 0.2 million) of which KPMG Oy Ab accounted for EUR 0.1 million (EUR 0.0 million). Other consultancy services are
subject to separate review and approval process concerning the provision of non-audit services by the Auditor and included
ACCOUNTING PRINCIPLES
Other operating expenses
Other operating expenses include losses from disposal of assets and other costs not directly related to production or sale
EUR million |
2025 |
2024 |
Current tax expense |
50.4 |
85.5 |
Deferred tax expense |
11.8 |
-16.8 |
Total tax expense |
62.2 |
68.7 |
Profit before taxes |
261.0 |
300.5 |
Tax calculated at domestic rate (20%) |
52.2 |
60.1 |
Effect of different tax rates in foreign subsidiaries |
4.3 |
-1.7 |
Non-deductible expenses and tax-exempt income |
1.2 |
0.4 |
Tax effect of unrecognized tax losses |
2.4 |
7.1 |
Previous period taxes |
-3.3 |
-1.3 |
Deferred tax liability on undistributed earnings |
1.9 |
0.0 |
Other items¹ |
3.6 |
4.0 |
Total tax expense |
62.2 |
68.7 |
1
Other items include functional currency remeasurements loss EUR 4 million (2024: gain EUR 4 million) and changes in local tax rates.
Tax effects relating to components of other comprehensive income
| 2025 |
2024 |
|||||
Before tax |
Tax expense / |
Net of tax |
Before ta x |
Tax expense / |
Net of tax |
|
EUR million |
amount |
benefit |
amount |
amount |
benefit |
amount |
Cash flow hedges |
-4.5 |
1.0 |
-3.5 |
-1.8 |
0.3 |
-1.6 |
Remeasurements on defined benefit plans |
22.7 |
-7.6 |
15.2 |
3.4 |
-0.7 |
2.7 |
In 2025, income tax liabilities include EUR 33 million (EUR 39 million) relating to uncertain tax positions with inherently
uncertain timing of cash outflows.
Certain Huhtamaki Group companies' prior period income tax returns are under examination by local tax authorities, and
in 2025 Huhtamaki had ongoing tax investigations in various jurisdictions, including Egypt, Germany, Ghana, India, the
Netherlands, Philippines, Vietnam and the United States.
Huhtamaki’s business and investments, especially in emerging markets, may be subject to uncertainties, including
unpredictable tax treatment. Management judgment and a degree of estimation are required in determining the amount
of tax expense. Liabilities for uncertain tax positions are recorded based on estimates and assumptions of the amount and
likelihood of outflow of economic resources when it is more likely than not that certain filing positions may not be fully
sustained upon review by local tax authorities. Even though management does not expect that any significant additional
taxes in excess of those already provided for will arise as a result of these examinations, the outcome or actual cost of
settlement may vary materially from estimates.
Directors’ Report and Financial Statements 2025 | 107
Finland enacted new tax legislation to implement a domestic minimum top-up tax, which is effective from 1 January 2024
and the Group is subject to the global minimum top-up tax under Pillar Two tax legislation. In 2025, Group recognized a
current tax expense of EUR 2 million (EUR 2 million) related to the top-up tax.
Income taxes
The Group income statement includes current taxes of Group companies based on taxable profit for the financial period
according to local tax regulations as well as adjustments to prior year taxes and changes in deferred taxes. Tax effect
relating to items recognized directly in equity or in other comprehensive income is recognized in equity or in other
comprehensive income.
difference between the tax basis of assets and liabilities and their carrying values for IFRS reporting purposes. Deferred
tax is not recognized for non-deductible goodwill and for differences in investments in subsidiaries to the extent that they
probably will not reverse in the foreseeable future.
Deferred tax is not recognized in the initial recognition of assets or liabilities in a transaction that is not a business
combination and that affects neither accounting nor taxable profit. In the determination of deferred income tax the enacted
tax rate is used.
Principal temporary differences arise from tangible assets, untaxed reserves, tax losses carried forward, financial
instruments and defined benefit plans. Deferred tax assets are recognized only to the extent that it is probable that future
taxable profit will be available against which such assets can be utilized.
The Group applies a temporary mandatory relief from accounting for deferred taxes for the impacts of the top-up tax and
In accordance with IFRIC 23 the Group recognizes provisions for uncertain tax positions when the Group has a present
obligation as a result of a past event and management judge that it is probable that there will be a future outflow of
economic benefits from the Group to settle the obligation. Uncertain tax positions are assessed and measured on an issue
by issue basis within the jurisdictions that we operate either using management’s estimate of the most likely outcome
where the issues are binary, or the expected value approach where the issues have a range of possible outcomes. The
Group recognizes interest on late paid taxes as part of financing costs, and any penalties, if applicable, as part of the income
EUR million |
2025 |
2024 |
Deferred tax assets |
||
Tangible assets |
54.3 |
43.5 |
Employee benefit |
24.8 |
34.4 |
Provisions |
5.9 |
6.1 |
Unused tax losses |
35.5 |
35.5 |
Other temporary differences |
37.0 |
46.2 |
Total |
157.6 |
165.7 |
Deferred tax liabilities |
||
Tangible assets |
164.9 |
157.1 |
Intangible assets |
22.3 |
26.8 |
Employee benefit |
18.9 |
20.5 |
Undistributed earnings |
25.5 |
24.1 |
Other temporary differences |
9.3 |
11.7 |
Total |
241.0 |
240.2 |
Net deferred tax liabilities |
83.4 |
74.4 |
Reflected in statement of financial position as follows: |
||
Deferred tax assets |
60.3 |
63.8 |
Directors’ Report and Financial Statements 2025 | 108
Deferred tax liabilities |
143.7 |
138.2 |
Total |
83.4 |
74.4 |
December 31, 2025 the Group had EUR 89 million (EUR 73 million) worth of deductable temporary differences, for which
no deferred tax asset was recognised. EUR 24 million of these temporary differences have unlimited expiry, EUR 11 million
expire over five years and EUR 53 million in five years.
Movements in the net deferred tax balance during the year
EUR million |
2025 |
2024 |
Net deferred tax balance at January 1 |
-74.4 |
-84.9 |
Recognized in income statement |
-11.8 |
16.8 |
Recognized in other comprehensive income |
-6.6 |
-0.5 |
Translation differences |
9.4 |
-5.9 |
Net deferred tax balance at December 31 |
-83.4 |
-74.4 |
Earnings per share
2025 |
2024 |
|
Net income attributable to equity holders of the parent company (basic/diluted), EUR million |
191.8 |
224.1 |
Weighted average number of shares outstanding, in thousands |
104,924 |
104,713 |
Effect of share-based payments, in thousands |
26 |
424 |
Diluted weighted average number of shares outstanding, in thousands |
104,949 |
105,136 |
Earnings per share from the profit for the period attributable to equity holders of the parent company |
||
Basic earnings per share, EUR |
1.83 |
2.14 |
Diluted earnings per share, EUR |
1.83 |
2.13 |
The dividends paid in 2025 were EUR 1.10 per share, totaling EUR 115.5 million (EUR 1.05 per share, totaling EUR 110.0
million). A dividend of EUR 1.14 per share will be proposed at the Annual General Meeting on April 29, 2026. This
corresponds total dividends of EUR 119.7 million for 2025, calculated based on outstanding shares at December 31, 2025.
The basic earnings per share figure is calculated by dividing the net income attributable to the shareholders of the parent
company by the weighted average number of shares outstanding during the period. Diluted earnings per share is calculated
by adjusting the weighted average number of shares by the effect of diluting shares due to Performance Share
Dividends proposed by the Board of Directors are not recognized in the financial statements until they have been approved
Directors’ Report and Financial Statements 2025 | 109
3. Acquisitions and capital expenditure
Zellwin Farms
On April 23, 2025 Huhtamaki completed the acquisition of Zellwin Farms, a privately-owned business located in Zellwood,
Florida in the United States. The USD 18 million enterprise value transaction will support Huhtamaki’s growth within the
molded fiber industry, specifically for egg cartons and egg flats. Zellwin Farms has been serving egg producing customers
throughout the Southeastern US from a single site for more than 20 years. The annual net sales of the acquired business is
approximately USD 20 million. The transaction will benefit Huhtamaki with additional capacity and capabilities in molded
fiber packaging.
The acquired business is reported as part of Huhtamaki’s North America business segment as of April 23, 2025. The
goodwill from the acquired business is expected to be deductible for income tax purposes. The transaction costs EUR 0.4
million are included in the Group income statement in Administration expenses.
Net sales of the acquired business included in the Group income statement since the acquisition date were EUR 12.1
million and the result for the period was EUR 1.3 million.
The Group net sales would have been approx. EUR 3 965 million and the Group result for the period approx. EUR 199
million if the acquired business would have been consolidated from January 1, 2025 onwards.
Values of acquired assets and liabilities at the time of acquisition
EUR million |
|
Tangible assets |
13.6 |
Inventory |
1.0 |
Trade and other receivables |
0.0 |
Total assets |
14.6 |
Trade and other liabilities |
0.1 |
Total liabilities |
0.1 |
Net assets total |
14.5 |
Goodwill |
0.0 |
Consideration |
14.5 |
Consideration, paid in cash |
14.5 |
Cash flows of acquisition
EUR million |
|
Purchase consideration, cash payment |
-14.5 |
Cash and cash equivalents in acquired companies |
- |
Transaction costs of the acquisition |
-0.4 |
Net cash flow on acquisition |
-14.9 |
Contingent considerations
In 2025, Huhtamaki recognized EUR 41.0 million of financial liabilities for contingent considerations. The payments are
contingent mainly on the financial performance on the acquired businesses after the acquisition. In 2024, there was no
financial liabilities for contingent considerations.
Directors’ Report and Financial Statements 2025 | 110
ACCOUNTING PRINCIPLES
Business combinations are accounted for using the acquisition method. The identifiable assets and liabilities are measured
at their fair value at the date of acquisition, any non-controlling interest is measured either at fair value or at the non-
controlling interest’s proportionate share of the acquiree’s net assets. In a business combination achieved in stages, the
previously held equity interest in the acquiree is remeasured at its acquisition-date fair value and any resulting gain or loss
is recognized in profit or loss or other comprehensive income, as appropriate. The aggregate of consideration transferred,
any non-controlling interest and any previously held equity interest, less acquired net assets is recognized as goodwill.
Any possible contingent consideration is recognized at fair value at the acquisition date and it is classified as a financial
liability or equity. Contingent consideration classified as a financial liability is remeasured at reporting period closing date
and the related profit or loss is recognized in the income statement. Contingent consideration classified as equity is not
remeasured.
Other | |||||
intangibles | |||||
(including | |||||
Customer | intangible | ||||
EUR million | Goodwill | relations | Software | rights) | Total 2025 |
Acquisition cost on January 1, 2025 | 1,157.1 | 119.2 | 56.0 | 87.9 | 1,420.3 |
Additions | - | - | 0.3 | 1.1 | 1.4 |
Disposals | - | - | -1.4 | -1.9 | -3.3 |
Intra-balance sheet transfer | - | - | 0.8 | 21.2 | 22.0 |
Business combinations | 0.0 | - | 0.0 | - | 0.1 |
Changes in exchange rates | -73.2 | -10.8 | -2.5 | -3.7 | -90.1 |
Acquisition cost on December 31, 2025 | 1,084.0 | 108.5 | 53.3 | 104.6 | 1,350.4 |
Accumulated amortization and impairment on January 1, 2025 | -133.0 | -63.8 | -47.1 | -58.6 | -302.5 |
Accumulated amortization on disposals and transfers | - | - | 1.4 | 0.2 | 1.6 |
Amortization during the financial year | - | -6.0 | -3.3 | -9.6 | -19.0 |
Impairments during the financial year 1 | - | - | - | -12.1 | -12.1 |
Changes in exchange rates | 4.3 | 5.2 | 2.2 | 2.4 | 14.0 |
Accumulated amortization and impairment on December 31, | |||||
| 2025 | -128.7 | -64.6 | -46.8 | -77.8 | -318.0 |
Book value on December 31, 2025 | 955.2 | 43.8 | 6.5 | 26.8 | 1,032.4 |
1
During Q2 2025 Huhtamaki made an impairment related to a restructuring in the Foodservice Packaging segment, consolidating production.
Directors’ Report and Financial Statements 2025 | 111
Other |
|||||
intangibles |
|||||
(including |
|||||
Customer |
intangible |
||||
EUR million |
Goodwill |
relations |
Software |
rights) |
Total 2024 |
Acquisition cost on January 1, 2024 |
1,124.5 |
115.1 |
99.2 |
85.2 |
1,424.0 |
Additions |
- |
- |
0.3 |
2.6 |
2.9 |
Disposals |
- |
-0.1 |
-47.3 |
-5.2 |
-52.5 |
Intra-balance sheet transfer |
- |
- |
2.8 |
3.7 |
6.5 |
Changes in exchange rates |
32.6 |
4.2 |
1.0 |
1.6 |
39.4 |
Acquisition cost on December 31, 2024 |
1,157.1 |
119.2 |
56.0 |
87.9 |
1,420.3 |
Accumulated amortization and impairment on January 1, 2024 |
-129.9 |
-55.5 |
-89.6 |
-50.5 |
-325.5 |
Accumulated amortization on disposals and transfers |
- |
0.1 |
47.2 |
1.0 |
48.3 |
Amortization during the financial year |
- |
-6.8 |
-3.7 |
-8.4 |
-18.9 |
Impairments during the financial year |
-1.4 1 |
- |
- |
- |
-1.4 |
Changes in exchange rates |
-1.7 |
-1.5 |
-1.0 |
-0.7 |
-4.9 |
Accumulated amortization and impairment on December 31, |
|||||
| 2024 |
-133.0 |
-63.8 |
-47.1 |
-58.6 |
-302.5 |
Book value on December 31, 2024 |
1,024.1 |
55.5 |
8.9 |
29.3 |
1,117.8 |
1
During 2024 it was announced that Huhtamaki is planning to consolidate the production footprint in the Foodservice Packaging segment by closing its production site in
Goodwill arising from an acquisition represents the excess of the consideration transferred over the fair value of the net
identifiable assets acquired. Goodwill is allocated to groups of cash-generating units that are expected to benefit from the
synergies of the acquisition and is not amortized but tested annually for impairment. For associates and joint ventures, the
carrying amount of goodwill is included in the carrying amount of the investment. Goodwill is valued at cost less impairment
Intangible assets include customer relations, patents, copyrights, trademarks, technologies, emission rights, renewable
energy certificates and software licenses. These are measured at cost and typically amortized on a straight-line basis over
the estimated useful lives, which may vary from 3 to 20 years. Other intangible assets with definite useful lives are tested
for impairment when there are indications of impairment, see more information on impairment of assets in Note 3.4.
Tangible assets.
Cloud computing arrangements that meet the definition of an intangible asset and comply with the recognition criteria are
capitalized on the balance sheet. Implementation costs (customization and configuration) relating to cloud computing
arrangements that don't meet the definition of an intangible asset and are distinct from the access to the software are
expensed when the services are received. If the customization and configuration services are not distinct from the access
to the software, the costs are recognized as prepayments and expensed over the software contract term.
Research costs are recognized in the income statement as incurred. Expenditure on development activities related to new
products and processes are capitalized in the statement of financial position from the moment they are expected to bring
future economic benefits and the Group has intention and resources to finalize the development. Previously expensed
Emission rights and renewable energy certificates are measured at cost. Rights and certificates received free of charge are
recognized at their nominal value (nil). Emission rights are derecognized against actual emissions. A provision to cover the
obligation to return emission rights is recognized at the fair value in the end of the reporting period if the emission
allowances held by the Group do not cover actual emissions. Renewable energy certificates are derecognized against actual
Directors’ Report and Financial Statements 2025 | 112
Intangible assets up to | 20 |
Software | 3–5 |
Customer relations | 7–15 |
Subsequent expenditure on capitalized other intangible assets is capitalized only when it increases the future economic
Goodwill allocation by groups of cash-generating units
Goodwill acquired through business combinations has been allocated to the level of groups of cash-generating units
(groups of CGUs) that are expected to benefit from the synergies of the acquisition, which represent the lowest level at
which the goodwill is monitored for internal management purposes. The group of CGU in which goodwill is allocated
represents operating segment. Goodwill allocation by segments, and the weighted average pre-tax discount interest rates
used in discounting the projected cash flows to their present value, are presented in the table below:
| 2025 | 2024 | |||
Discount interest | Discount interest | |||
rates used | rates used | |||
EUR million | Goodwill | (pre-tax), % | Goodwill | (pre-tax), % |
Flexible Packaging | 495.5 | 10.7 | 539.7 | 11.9 |
North America | 220.1 | 10.1 | 234.4 | 9.8 |
Foodservice Packaging | 175.9 | 9.7 | 186.3 | 9.7 |
Fiber Packaging | 63.7 | 10.6 | 63.7 | 10.4 |
Total goodwill | 955.2 | 1,024.1 | ||
Impairment testing
Goodwill has been tested for impairment and since the recoverable value of the groups of the cash-generating units (CGUs)
has been higher than the carrying value, no impairment charges has been recognized.
In assessing whether goodwill has been impaired, the carrying value of the group of CGUs has been compared to the
recoverable amount of the group of CGUs. The recoverable amount is based on value-in-use, which is estimated using a
discounted cash flow model. The cash flows are determined using five-year cash flow forecasts, which are based on
business plans. The plans are based on experience as well as future expected market trends. The plans are approved by
management and are valid when impairment test is performed. Cash flows for future periods are extrapolated by using 0.8
(0.8) percent growth rate in developed countries, 1.4 (1.4) percent growth rate in developing countries and 2.2 (2.4)
percent growth rate in high growth countries. The management views these growth rates as being appropriate for the
business, given the long time horizon of the testing period.
Sensitivity analysis
As part of the impairment testing, a sensitivity analysis around the key assumptions is performed. The assumptions used in
the impairment testing, that are considered to be most sensitive for changes, are EBIT and discount rates. Sensitivity
analysis around these key assumptions have been performed, and management believes that any reasonably possible
change (decrease of 1.5 percentage points in EBIT margin, increase of 1.5 percentage points in discount rates or combined
effect of these changes) in the key assumptions would not cause the carrying amount to exceed the recoverable amount in
ACCOUNTING PRINCIPLES
Directors’ Report and Financial Statements 2025 | 113
Goodwill is tested annually or more frequently if there are indications of impairment. In assessing whether goodwill has
been impaired, the carrying value of the group of cash generating units (group of CGUs) has been compared to the
recoverable amount of the group of CGUs. The recoverable amount is based on value-in-use, which is estimated using a
discounted cash flow model. The cash flows are determined using five-year cash flow forecasts, which are based on
business plans. Business plans are based on past experience as well as future expected market trends. Management
approves business plans for impairment testing purposes. Cash flows for future periods are extrapolated by using defined
growth rates for developed countries, developing countries and emerging countries. The discount rate used in the
calculation reflects the weighted average cost of capital (WACC) and risks to the asset under review.
A goodwill impairment loss is recognized immediately as an expense in the income statement and is not subsequently
EUR million
2025 | 2024 | |
Owned property, plant and equipment | 1,571.0 | 1,761.7 |
Right-of-use assets | 185.6 | 152.2 |
Total tangible assets | 1,756.5 | 1,913.9 |
Owned assets | ||||||
Construction | ||||||
Buildings | Machinery | in progress | Other | |||
Land and land | and | and | and advance | tangible | Total | |
EUR million | improvements | constructions | equipment | payments | assets | 2025 |
Acquisition cost on January 1, 2025 | 47.3 | 562.2 | 2,508.7 | 371.4 | 122.0 | 3,611.6 |
Additions | - | 0.6 | 8.1 | 160.5 | 1.4 | 170.6 |
Disposals | -0.6 | -3.0 | -40.2 | -1.0 | -2.8 | -47.6 |
Intra-balance sheet transfer | 2.7 | 25.5 | 228.2 | -282.4 | 5.6 | -20.5 |
Business combinations | 4.0 | 3.2 | 6.4 | - | 0.1 | 13.8 |
Reclassification to assets held for sale | - | - | - | - | - | - |
Changes in exchange rates | -4.2 | -43.2 | -177.0 | -21.0 | -8.2 | -253.5 |
Acquisition cost on December 31, 2025 | 49.2 | 545.4 | 2,534.1 | 227.4 | 118.2 | 3,474.3 |
Accumulated depreciation and impairment on January 1, | ||||||
-2.9 | -256.2 | -1,505.5 | - | -85.3 | -1,849.8 | |
2025 | ||||||
Accumulated depreciation on disposals and transfers | - | 2.3 | 37.2 | - | 2.7 | 42.3 |
Depreciation during the financial year | -0.8 | -21.2 | -135.5 | - | -8.1 | -165.5 |
Impairments during the financial year 1 | - | -1.0 | -63.7 | - | -0.0 | -64.7 |
Reclassification to assets held for sale | - | - | - | - | - | - |
Changes in exchange rates | 0.4 | 18.2 | 110.6 | - | 5.2 | 134.4 |
Accumulated depreciation and impairment on December | ||||||
31, 2025 | -3.3 | -257.9 | -1,556.7 | - | -85.4 | -1,903.4 |
Book value on December 31, 2025 | 45.9 | 287.5 | 977.4 | 227.4 | 32.7 | 1,571.0 |
1
During Q2 2025 Huhtamaki made an impairment related to a restructuring in the Foodservice Packaging segment, consolidating production.
Owned assets | ||||||
Construction | ||||||
Buildings | Machinery | in progress | Other | |||
Land and land | and | and | and advance | tangible | Total | |
EUR million | improvements | constructions | equipment | payments | assets | 2024 |
Acquisition cost on January 1, 2024 | 47.9 | 535.8 | 2,276.3 | 342.7 | 112.9 | 3,315.6 |
Additions | - | 0.6 | 11.7 | 232.0 | 0.7 | 245.1 |
Disposals | -0.4 | -6.7 | -42.3 | -1.2 | -5.0 | -55.6 |
Intra-balance sheet transfer | 0.1 | 13.7 | 182.3 | -213.2 | 10.5 | -6.5 |
Business combinations | - | - | - | - | - | - |
Reclassification to assets held for sale 1 | -1.7 | - | - | - | - | -1.7 |
Changes in exchange rates | 1.3 | 18.8 | 80.8 | 11.1 | 2.8 | 114.7 |
Acquisition cost on December 31, 2024 | 47.3 | 562.2 | 2,508.7 | 371.4 | 122.0 | 3,611.6 |
Accumulated depreciation and impairment on January 1, | ||||||
| 2024 | -1.9 | -226.6 | -1,363.1 | - | -78.2 | -1,669.8 |
Directors’ Report and Financial Statements 2025 | 114
Accumulated depreciation on disposals and transfers |
-0.0 |
4.8 |
44.3 |
- |
4.7 |
53.8 |
Depreciation during the financial year |
-0.8 |
-26.3 |
-136.9 |
- |
-9.7 |
-173.8 |
Impairments during the financial year |
- |
- |
- |
- |
- |
- |
Reclassification to assets held for sale 1 |
- |
- |
- |
- |
- |
- |
Changes in exchange rates |
-0.2 |
-8.1 |
-49.8 |
- |
-1.9 |
-60.0 |
Accumulated depreciation and impairment on December |
||||||
| 31, 2024 |
-2.9 |
-256.2 |
-1,505.5 |
- |
-85.3 |
-1,849.8 |
Book value on December 31, 2024 |
44.4 |
306.0 |
1,003.2 |
371.4 |
36.7 |
1,761.7 |
1
See Note 3.5. Assets held for sale.
Right-of-use assets |
|||||
Buildings |
|||||
and |
Machinery and |
Other |
|||
EUR million |
Land |
constructions |
equipment |
tangible assets |
Total 2025 |
Acquisition cost on January 1, 2025 |
15.3 |
218.2 |
38.8 |
2.3 |
274.6 |
Additions |
0.0 |
66.2 |
11.4 |
2.1 |
79.7 |
Disposals |
-0.0 |
-14.9 |
-9.0 |
-0.1 |
-24.0 |
Intra-balance sheet transfer |
- |
- |
-0.1 |
- |
-0.1 |
Business combinations |
- |
- |
- |
- |
- |
Changes in exchange rates |
-1.6 |
-11.2 |
-1.8 |
-0.2 |
-14.8 |
Acquisition cost on December 31, 2025 |
13.7 |
258.2 |
39.3 |
4.1 |
315.3 |
Accumulated depreciation and impairment on January 1, 2025 |
-7.1 |
-96.1 |
-18.0 |
-1.2 |
-122.4 |
Accumulated depreciation on disposals and transfers |
- |
9.6 |
8.5 |
0.1 |
18.1 |
Depreciation during the financial year |
-0.6 |
-21.5 |
-8.8 |
-0.5 |
-31.4 |
Changes in exchange rates |
0.8 |
4.3 |
0.8 |
0.1 |
5.9 |
Accumulated depreciation and impairment on December 31, |
|||||
| 2025 |
-6.9 |
-103.6 |
-17.6 |
-1.6 |
-129.8 |
Book value on December 31, 2025 |
6.8 |
154.6 |
21.6 |
2.6 |
185.6 |
Right-of-use assets |
|||||
Buildings |
|||||
and |
Machinery and |
Other |
|||
EUR million |
Land |
constructions |
equipment |
tangible assets |
Total 2024 |
Acquisition cost on January 1, 2024 |
14.5 |
204.8 |
40.6 |
2.1 |
262.1 |
Additions |
0.0 |
22.1 |
12.5 |
0.5 |
35.0 |
Disposals |
-0.0 |
-18.2 |
-10.0 |
-0.4 |
-28.6 |
Intra-balance sheet transfer |
- |
5.1 |
-5.1 |
- |
- |
Changes in exchange rates |
0.8 |
4.4 |
0.8 |
0.1 |
6.0 |
Acquisition cost on December 31, 2024 |
15.3 |
218.2 |
38.8 |
2.3 |
274.6 |
Accumulated depreciation and impairment on January 1, 2024 |
-6.1 |
-86.5 |
-19.4 |
-1.0 |
-113.0 |
Accumulated depreciation on disposals and transfers |
0.0 |
12.4 |
9.8 |
0.3 |
22.6 |
Depreciation during the financial year |
-0.6 |
-20.0 |
-8.1 |
-0.6 |
-29.3 |
Changes in exchange rates |
-0.3 |
-2.0 |
-0.4 |
-0.0 |
-2.7 |
Accumulated depreciation and impairment on December 31, |
|||||
| 2024 |
-7.1 |
-96.1 |
-18.0 |
-1.2 |
-122.4 |
Book value on December 31, 2024 |
8.2 |
122.1 |
20.8 |
1.1 |
152.2 |
ACCOUNTING PRINCIPLES
Tangible assets include both owned property, plant and equipment and right-of-use (ROU) assets.
Tangible assets comprising mainly of land, buildings, machinery, tooling and equipment are valued at cost less accumulated
depreciation and impairment losses. The cost of self-constructed assets includes the cost of material, direct labor costs and
an appropriated proportion of production overheads. When an asset includes major components that have different useful
lives, they are accounted for as separate items. The costs of right-of-use assets include the amount of the initial
Directors’ Report and Financial Statements 2025 | 115
measurement of the lease liability, any lease payments made at or before the commencement date less lease incentives
received, any direct costs and an estimate of dismantling costs. The carrying amount is further adjusted for any
remeasurement of the lease liability.
Expenditure incurred to replace a component in a tangible asset that is accounted for separately, including major inspection
and overhaul costs, is capitalized. Other subsequent expenditure is capitalized only when it increases the future economic
benefits embodied in the asset. All other expenditure such as ordinary maintenance and repairs is recognized in the income
statement as an expense as incurred. The borrowing costs directly attributable to the acquisition, construction or
production of a qualifying asset are capitalized as part of the acquisition cost.
property, plant and equipment or over the lease term of right-of-use assets. Land is not depreciated.
The estimated useful lives of the owned property, plant and equipment are (years):
Buildings and other structures | 20–40 |
Machinery and equipment | 5–25 |
Other tangible assets and land improvements | 3–12 |
Tangible assets which are classified as held for sale are valued at lower of its carrying amount or fair value less costs to sell.
The depreciation of these assets will be ceased when assets are classified as held for sale. Gains or losses arising from the
disposal of tangible assets are included in Earnings before interest and taxes.
See Note 6.4. Leases for more detailed information about the accounting principles for right-of-use assets.
The carrying amounts of assets are assessed at each reporting period closing date to determine whether there is any
indication of impairment. If such indication exists, the recoverable amount is estimated. An impairment loss is recognized
whenever the carrying amount of assets or cash-generating unit exceeds the recoverable amount. Impairment losses are
recognized in the income statement. Impairment losses recognized in respect of cash-generating units are allocated first
to reduce the carrying value of goodwill allocated to groups of cash-generating units and then to reduce the carrying
amount of other assets in the group of units on pro rata bases.
For intangible and tangible assets the recoverable amount is the higher of the fair value less costs to sell and value-in-use.
In assessing value-in-use, the estimated future cash flows are discounted to their present value based on the average cost
of capital rate (pre-tax) of the cash-generating unit where the assets are located, adjusted for risks specific to the assets.
In respect of tangible assets, and other intangible assets excluding goodwill, impairment losses recognized in prior periods
are assessed at each reporting date for any indication that the loss has decreased or no longer exists. An impairment loss is
reversed if there has been a change in the estimates used to determine the recoverable amount. An impairment loss is only
reversed to the extent that the asset’s carrying amount does not exceed the carrying amount that would have been
determined, net of depreciation or amortization, if no impairment loss had been recognized. An impairment loss in respect
Non-current assets held for sale
On June 8, 2023, Huhtamaki announced the decision to consolidate the production footprint of its Flexible Packaging
segment in Europe by closing its Flexible Packaging production facility in Prague, Czech Republic. As a result, the Group
reclassified certain assets consisting of land and machinery from property, plant and equipment to assets held for sale at
Directors’ Report and Financial Statements 2025 | 116
the end of 2024. The amount of non-current assets held for sale was EUR 1.8 million at the end of year 2025 (EUR 1.7
million at the end of year 2024), and the Group expects to dispose these assets over the course of next 12 months.
ACCOUNTING PRINCIPLES
Non-current assets are classified as held for sale, if their carrying amounts will be recovered mainly through a sale
transaction rather than through continuing use. The assets must be available for immediate sale in their present condition
subject only to terms that are usual and customary for sale of such assets. Also, the sale must be highly probable and
expected to be completed within one year from the date of classification. These assets are presented separately in the
consolidated statement of financial position and measured at the lower of the carrying amount and fair value less costs to
sell. Comparative information is not restated when classification is made. Non-current assets classified as held for sale are
Directors’ Report and Financial Statements 2025 | 117
4. Working capital
EUR million |
2025 |
2024 |
Raw and packaging material |
214.0 |
262.4 |
Work-In-Process |
77.4 |
87.7 |
Finished goods |
329.1 |
336.9 |
Goods in transit |
21.4 |
21.4 |
Obsolescence allowance |
-41.9 |
-41.8 |
Total |
599.9 |
666.6 |
An allowance of EUR 41.9 million (EUR 41.8 million) has been established for obsolete items. Total inventories include EUR
4.7 million resulting from reversals of previously written down values (EUR 8.0 million). Reversals relate to items used in
production and sold finished goods inventories.
ACCOUNTING PRINCIPLES
Inventories are measured at the lower of cost and net realizable value. Net realizable value is the estimated selling price in
the ordinary course of business, less the estimated costs of completion and selling expenses.
Cost of inventories is determined using the first-in first-out (FIFO) principle and include expenditure incurred in acquiring
the inventories and bringing them to their existing location and condition. Costs for produced finished goods and work-in-
process represent the purchase price of materials, direct labor costs, other direct costs and related production overheads
EUR million |
2025 |
2024 |
Trade receivables |
456.8 |
540.5 |
Other receivables |
95.4 |
68.9 |
Accrued interest and other financial items |
6.5 |
14.7 |
Other accrued income and prepaid expenses |
52.3 |
54.1 |
Total |
611.0 |
678.1 |
Other accrued income and prepaid expenses include prepayments for goods, accrued royalty income, rebates and other
miscellaneous accruals.
Gross |
Impairment |
Net |
Gross |
Impairment |
Net |
|
EUR million |
2025 |
2025 |
2025 |
2024 |
2024 |
2024 |
Not past due |
415.7 |
0.5 |
415.2 |
493.2 |
0.8 |
492.4 |
Past due 0–30 days |
32.8 |
0.0 |
32.7 |
36.4 |
0.2 |
36.2 |
Past due 31–120 days |
8.6 |
0.1 |
8.5 |
10.9 |
0.4 |
10.6 |
Past due more than 120 days |
4.9 |
4.4 |
0.4 |
5.2 |
3.8 |
1.4 |
Total |
461.9 |
5.1 |
456.8 |
545.8 |
5.2 |
540.5 |
ACCOUNTING PRINCIPLES
Trade and other current receivables are financial assets initially measured at fair value and subsequently measured at
amortized cost by using the effective interest method. The Group uses simplified approach to measure a loss allowance for
Directors’ Report and Financial Statements 2025 | 118
expected credit losses on trade receivables that do not contain a significant financing component, where the Group always
measures the loss allowance at an amount equal to the lifetime expected credit losses. For this purpose, trade receivables
are grouped based on geographical location, product type and customer rating. The Group uses its historical credit losses
experience adjusted with supportable information about current and future conditions to define the expected credit losses.
The amount of expected credit losses is updated at each reporting date.
In factoring arrangements for trade receivables, the sold trade receivables are derecognized once the contractual cash
Restructuring provisions
Restructuring provisions include mainly costs for various ongoing projects to streamline operations. Provisions relate to
employee termination benefits.
During 2025 a restructuring provision of EUR 3.7 million was made relating to operational efficiency measures. During
2025 EUR 3.1 million of the provision was used and at the end of year 2025 the amount of the provision was EUR 0.6
million.
During 2024 it was announced that Huhtamaki has decided to consolidate its three Flexible Packaging manufacturing sites
in the United Arab Emirates, keeping one factory in Jebel Ali and expanding the one in Ras Al Khaimah. As a result, a
restructuring provision of EUR 1.6 million was made, EUR 0.6 million was used, EUR 0.3 million was reversed and at the
end of year 2024 the amount of the provision was EUR 0.8 million. During year 2025 EUR 0.2 million of the provision was
reversed and at the end of year 2025 the amount of the provision was EUR 0.6 million.
During 2024 it was announced that Huhtamaki is planning to consolidate the production footprint in the Foodservice
Packaging segment by closing its production site in Port Klang, Malaysia, by the end of Q2 2024. As a result, a restructuring
provision of EUR 3.3 million was made, EUR 0.3 million was used and at the end of year 2024 the amount of the provisions
was EUR 3.1 million. During year 2025 EUR 0.2 million of the provision was used, EUR 2.8 million was reversed and at the
end of year 2025 the amount of the provision was EUR 0.1 million.
Other provisions
Other provisions include mainly captive insurance provisions relating to workers, environmental and litigation provisions.
Restructuring | ||||
EUR million | reserve | Other | Total 2025 | Total 2024 |
Provision on January 1, 2025 | 6.2 | 16.6 | 22.8 | 23.9 |
Translation difference | -0.2 | -1.1 | -1.3 | 0.5 |
Provisions made during the year | 4.9 | 7.9 | 12.8 | 12.8 |
Provisions used during the year | -6.0 | -2.0 | -8.0 | -11.7 |
Unused provisions reversed during the year | -3.0 | -5.6 | -8.6 | -2.7 |
Provision on December 31, 2025 | 1.8 | 15.8 | 17.6 | 22.8 |
Current | 1.8 | 5.5 | 7.4 | 9.4 |
Non-current | - | 10.2 | 10.2 | 13.4 |
ACCOUNTING PRINCIPLES
Provisions are recognized in the statement of financial position when the Group has a present legal or constructive
obligation as a result of a past event and it is probable that an outflow of economic benefits will be required to settle such
obligation, and a reliable estimate of the amount of the obligation can be made. Provisions arise from restructuring plans,
onerous contracts, legal proceedings and from environmental litigation risks. Obligations arising from restructuring plans
Directors’ Report and Financial Statements 2025 | 119
are recognized when the detailed and formal plans have been established and when there is a valid expectation that such
EUR million |
2025 |
2024 |
Trade payables |
437.0 |
507.0 |
Other payables |
78.1 |
96.4 |
Accrued interest expense and other financial items |
21.9 |
30.3 |
Personnel and social security accruals |
72.8 |
89.6 |
Other accrued expenses |
69.5 |
92.8 |
Total |
679.3 |
816.0 |
Other accrued expenses include accruals for purchases of material and other miscellaneous accruals.
ACCOUNTING PRINCIPLES
EUR million |
2025 |
2024 |
Payables in supplier finance arrangements |
28.3 |
27.3 |
Supplier has received payment |
19.8 |
20.7 |
Supplier has not yet received payment |
8.4 |
6.6 |
The payables in supplier finance arrangements are presented in Trade and other current liabilities in the statement of
financial position.
2025 |
2024 |
|||
Payment terms within |
Comparative payment terms |
Payment terms within |
Comparative payment terms |
|
EUR million |
arrangements (current) |
without arrangements |
arrangements (current) |
without arrangements |
0–30 days |
0.4 |
3.9 |
4.8 |
5.8 |
31–90 days |
9.4 |
14.6 |
8.7 |
16.4 |
91–180 days |
18.5 |
9.8 |
13.9 |
5.1 |
Total |
28.3 |
28.3 |
27.3 |
27.3 |
Huhtamaki has entered into supplier finance arrangements with the terms and conditions of providing extended payment
terms for Huhtamaki, earlier payment possibilities for supplier or both mentioned. Most of the arrangements provide
extended payment terms for Huhtamaki or extended payment terms for Huhtamaki and earlier payment possibilities for
supplier. A few provide only earlier payment possibilities for supplier.
A supplier finance arrangement is characterised by one or more finance providers that are offering to pay amounts that an
entity owes to its suppliers. The entity is agreeing to pay according to the terms and conditions of the arrangement at the
same date as, or a date later than, suppliers are paid. When entering into an arrangement, it is considered whether the
terms and conditions of related payables substantially change. If the financing nature is becoming more dominant, the
Directors’ Report and Financial Statements 2025 | 120
5. Capital structure and financial items
EUR million |
2025 |
2024 |
Interest income |
||
Financial assets at amortized cost |
||
Interest-bearing receivables and other receivables |
10.4 |
12.9 |
Financial assets at fair value through profit or loss |
||
Derivatives |
4.0 |
0.7 |
Defined benefit plans |
3.2 |
2.8 |
Dividend income |
||
Other investments |
0.1 |
0.2 |
Financial income |
17.7 |
16.6 |
Interest expense |
||
Financial liabilities measured at amortized cost |
||
Interest-bearing liabilities (excl. lease liabilities) |
-53.1 |
-62.3 |
Lease liabilities |
-8.4 |
-6.6 |
Financial liabilities at fair value through profit or loss |
||
Derivatives |
-6.8 |
-5.6 |
Defined benefit plans |
-5.5 |
-5.3 |
Other financial expense |
||
FX revaluation losses |
||
Interest-bearing assets and liabilities |
-1.0 |
-4.0 |
Derivatives |
- |
-2.1 |
Fees related to committed credit facilities |
-2.4 |
-2.4 |
Other fees |
-0.1 |
-0.1 |
Financial expense |
-77.2 |
-88.3 |
Net financial items |
-59.5 |
-71.8 |
ACCOUNTING PRINCIPLES
Gains and losses on fair value hedges are reported net of the gain or loss on the hedged item. Only foreign exchange
revaluation gains and losses arising from purely financial exposures such as loans denominated in foreign currencies are
reported in other financial items. Changes in fair value of contingent considerations related to business combinations are
2025 |
2025 |
2024 |
2024 |
|
EUR million |
Carrying amount |
Fair value |
Carrying amount |
Fair value |
Current |
||||
Loan receivables |
24.6 |
24.6 |
22.5 |
22.5 |
Finance lease receivables |
1.5 |
1.5 |
2.4 |
2.4 |
Current interest-bearing receivables |
26.1 |
26.1 |
24.9 |
24.9 |
Non-current |
||||
Loan receivables |
0.1 |
0.1 |
0.1 |
0.1 |
Finance lease receivables |
2.6 |
2.6 |
4.1 |
4.1 |
Non-current interest-bearing receivables |
2.7 |
2.7 |
4.2 |
4.2 |
Directors’ Report and Financial Statements 2025 | 121
EUR million |
2025 |
2024 |
Finance lease receivable is payable as follows: |
||
In less than one year |
1.5 |
2.4 |
Between one and five years |
2.6 |
4.1 |
Total minimum lease payments |
4.1 |
6.5 |
Present value of minimum lease payments |
||
In less than one year |
1.3 |
2.1 |
Between one and five years |
2.4 |
3.7 |
Total present value of minimum lease payments |
3.7 |
5.8 |
Unearned future financial income |
0.4 |
0.7 |
ACCOUNTING PRINCIPLES
Interest bearing receivables are measured at amortized cost. Fair values have been calculated by discounting future cash
flows of each major receivable at the appropriate market interest rate prevailing at closing date. The fair value of current
EUR million |
2025 |
2024 |
Cash and bank |
348.2 |
300.2 |
Liquid marketable securities |
30.4 |
16.9 |
Total |
378.6 |
317.1 |
ACCOUNTING PRINCIPLES
Cash and cash equivalents comprise of cash at bank and short-term highly liquid deposits and money market securities for
Share capital |
Number of shares |
Share capital EU R |
Share premium EU R |
Treasury shares EU R |
Total EU R |
January 1, 2024 |
107,760,385 |
366,385,309.00 |
115,023,103.38 |
-29,610,748.28 |
451,797,664.10 |
Own shares conveyance through performance |
|||||
| share incentive plan |
- |
- |
- |
2,044,859.39 |
2,044,859.39 |
December 31, 2024 |
107,760,385 |
366,385,309.00 |
115,023,103.38 |
-27,565,888.89 |
453,842,523.49 |
Own shares conveyance through performance |
|||||
| share incentive plan |
- |
- |
- |
1,907,851.72 |
1,907,851.72 |
December 31, 2025 |
107,760,385 |
366,385,309.00 |
115,023,103.38 |
-25,658,037.17 |
455,750,375.21 |
All shares issued are fully paid.
Share capital of the parent company
Huhtamäki Oyj has one series of shares. Each share entitles its holder to equal voting rights and equal distribution of
dividend and other assets. The Company’s Articles of Association do not contain rules regarding the minimum or maximum
Directors’ Report and Financial Statements 2025 | 122
number of shares or the minimum or maximum share capital. Shares do not have a nominal value. All shares issued are fully
paid.
The amount of the subscription price exceeding the par value of shares (EUR 3.40) received by the Company in connection
with share subscriptions based on option rights granted under the option rights plan established under the old Companies
Act (734/1978) has been recorded in the share premium. The Company’s last existing option rights plan ceased on April
30, 2014.
repurchased in total 5,061,089 own shares during 2002 and 2003. After 2003 no own shares have been repurchased. The
Annual General Meeting of Shareholders on April 24, 2025 authorized the Board of Directors to decide on the repurchase
of the Company’s own shares. The authorization remains in force until the end of the next Annual General Meeting,
however, no longer than until June 30, 2026. The authorization by Annual General Meeting on April 25, 2024 to the Board
of Directors to resolve on the repurchase of own shares terminated at the end of the Annual General Meeting on April 24,
2025.
The Annual General Meeting of Shareholders on April 24, 2025 authorized the Board of Directors to decide on the
issuance of shares as well as the issuance of special rights entitling to shares. The authorization remains in force until the
end of the next Annual General Meeting, however, no longer than until June 30, 2026. This authorization cancelled the
authorization given by the Annual General Meeting on April 25, 2024 to decide on the issuance of shares as well as the
issuance of special rights entitling to shares. During 2025 a total of 207,610 (222,519) own shares were transferred based
on the authorization in force at that time.
Members of the Board of Directors and the CEO of the Company owned on December 31, 2025 a total of 49,979
(134,528) shares. These shares represented 0.05% (0.12%) of the total number of shares and voting rights in the Company
Proposal of the Board of Directors to distribute the earnings
financial period was EUR 126,437,015.22. The Board of Directors proposes that dividend will be distributed at EUR 1.14
per share. No dividend for the own shares held by the Company on the record date shall be distributed. The total amount
No significant changes have taken place in the Company’s financial position since the end of the financial year. The
Company’s liquidity position is good and the proposed distribution does not, in the view of the Board of Directors, risk the
Company’s ability to fulfill its obligations.
Treasury shares
Treasury shares include the purchase price of Huhtamäki Oyj’s shares held by Group companies. In 2025 a total of 207,610
(222,519) own shares were transferred. There are no additions in treasury shares in 2025.
Translation differences contain the differences resulting from the translation of foreign entities’ financial statements into
euros. Also gains and losses from net investments in foreign entities are reported in translation differences. Hedges of
those investments are reported in translation differences, if hedge accounting criteria is met.
Fair value and other reserves
Fair value and other reserves contain the effective portion of the fair value changes derivative instruments designated as
cash flow hedges, the change in fair value of other investments and remeasurements on defined benefit plans. Also
Directors’ Report and Financial Statements 2025 | 123
ACCOUNTING PRINCIPLES
Equity, dividends and own shares
The Group’s equity includes instruments that evidences a residual interest in the assets of an entity after deducting all of
its liabilities and contains no contractual obligation for the issuer to deliver cash or other financial asset to another entity
or to exchange financial assets or financial liabilities with another entity under conditions which are unfavorable to the
issuer. When Huhtamäki Oyj’s own shares are repurchased, the amount of the consideration paid, including directly
in the financial statements until the shareholders have approved them at the Annual General Meeting.
All derivative financial instruments are measured at fair value. The Group applies hedge accounting for certain interest rate
swaps and foreign exchange forwards that meet hedge accounting criteria as defined in IFRS 9. The hedged item must be
highly probable to occur and must ultimately affect the income statement. The hedges must be highly effective
prospectively. For qualifying cash flow hedges, the portion of any change in fair value that is effective is included in other
comprehensive income, and any remaining ineffective portion is recognized in the income statement. The cumulative
changes of fair value of the hedging instrument that have been recognized in equity are transferred from equity and
included in the income statement when the forecasted transaction is recognized in the income statement. When the
hedged forecast transaction subsequently results in the recognition of non-financial asset or non-financial liability, the
cumulative change of fair value of the hedging instrument that has been recognized in equity is transferred from equity and
included in the initial carrying amount of the asset or liability at the time it is recognized.
For qualifying fair value hedges, the valuation is recognized in the income statement relating to the hedged risk. Derivative
instruments that are designated as hedging instruments but not accounted for according to the principles of hedge
accounting or which do not fulfill IFRS 9 hedge accounting requirements are classified as financial instruments at fair value
through profit or loss and valued at fair value. Changes in fair values of these derivative financial instruments are
recognized in the income statement. A non-split presentation is applied to liabilities at fair value through profit or loss
because the presentation in OCI would create or enlarge an accounting mismatch in profit or loss.
The Group uses foreign exchange forwards and foreign currency loans to hedge net investments in foreign entities. Hedges
of net investment in foreign entities must meet the same hedge accounting criteria as cash flow hedges as detailed in IFRS
9. All changes in fair value arising from the hedges are recognized as a translation difference in other comprehensive
income if hedge accounting criteria are met. If the hedged entity is disposed of, the cumulative changes in fair value of the
Directors’ Report and Financial Statements 2025 | 124
2025 | 2024 | |||
EUR millio n | Carrying amount | Fair value | Carrying amount | Fair value |
Current | ||||
Loans from financial institutions | ||||
fixed rate | 32.5 | 32.1 | 103.8 | 102.4 |
floating rate | 147.0 | 147.5 | 102.1 | 103.3 |
Bonds | ||||
fixed rate | 15.4 | 15.1 | - | - |
Other current loans | ||||
floating rate | 0.2 | 0.2 | 0.2 | 0.2 |
Contingent considerations | 41.0 | 41.0 | - | - |
Lease liabilities | 27.9 | 27.9 | 26.7 | 26.7 |
Total | 264.0 | 263.7 | 232.8 | 232.6 |
Non-current | ||||
Loans from financial institutions | ||||
fixed rate | 73.2 | 73.1 | 33.3 | 32.7 |
floating rate | 101.5 | 101.5 | 183.6 | 183.6 |
Bonds | ||||
fixed rate | 972.3 | 977.7 | 972.2 | 976.9 |
Other non-current loans | ||||
floating rate | - | - | 1.1 | 1.1 |
Contingent considerations | - | - | - | - |
Lease liabilities | 172.9 | 172.9 | 138.9 | 138.9 |
Total | 1,319.9 | 1,325.1 | 1,329.1 | 1,333.3 |
Loans from | ||||||
financial | Contingent | |||||
Repayment | institutions | Bonds | Other loans | considerations | Lease liabilities | Total |
2026 | 179.5 | 15.4 | 0.2 | 41.0 | 27.9 | 264.0 |
2027 | 31.0 | 374.2 | - | - | 27.4 | 432.5 |
2028 | - | 299.1 | - | - | 23.1 | 322.1 |
2029 | - | - | - | - | 19.4 | 19.4 |
2030 | 125.0 | - | - | - | 16.3 | 141.3 |
2031– | 25.0 | 299.0 | - | - | 86.7 | 410.7 |
Interest-bearing loans and borrowings are classified as other liabilities. Interest-bearing loans and borrowings are
originated loans and bank loans, and are carried at amortized cost by using the effective interest rate method. All interest-
bearing liabilities are other liabilities than liabilities for trading purposes or derivative financial instruments defined in IFRS
9 and as such are carried at amortized cost. Fair values have been calculated by discounting future cash flows at the
appropriate market interest rate prevailing at period end closing date. Interest rates for measuring fair values of interest-
bearing liabilities were 3.39%–5.09%. The fair value of current interest-bearing liabilities is estimated to equal the carrying
amount.
Contingent considerations related to business combinations classified as financial liabilities are measured at fair value
through profit or loss and reported in the interest-bearing liabilities.
Lease liabilities are recognized at the commencement date of the lease. Lease liabilities are measured at the present value
of future lease payments using an effective interest rate method. The carrying amount is reduced to reflect the lease
payments made and the interest expense is allocated over the lease term. A lease liability is remeasured, when there is a
Reconciliation of liabilities arising from financing activities
Directors’ Report and Financial Statements 2025 | 125
2025 |
2024 |
|||||||
| Non-cash changes |
||||||||
Reclassification |
||||||||
Business |
Contingent |
Foreign exchange |
from long-term |
|||||
EUR million |
Total |
Cash flows |
combinations |
considerations |
movement |
to short-term |
Other |
Total |
Long-term loans |
1,147.0 |
101.4 |
- |
- |
-6.2 |
-140.5 |
2.1 |
1,190.2 |
Short-term loans |
236.1 |
-145.4 |
- |
41.0 |
-2.7 |
140.5 |
-3.3 |
206.1 |
Long-term lease liabilities |
172.9 |
51.3 |
- |
- |
-8.0 |
-24.8 |
15.5 |
138.9 |
Short-term lease liabilities |
27.9 |
-34.5 |
- |
- |
-1.2 |
24.8 |
12.0 |
26.7 |
Total liabilities from financing |
||||||||
activities |
1,583.9 |
-27.2 |
- |
41.0 |
-18.2 |
- |
26.3 |
1,561.9 |
2024 |
2023 |
|||||||
| Non-cash changes |
||||||||
Reclassification |
||||||||
Business |
Contingent |
Foreign exchange |
from long-term |
|||||
EUR million |
Total |
Cash flows |
combinations |
considerations |
movement |
to short-term |
Other |
Total |
Long-term loans |
1,190.2 |
36.3 |
- |
- |
2.5 |
-85.5 |
-29.7 |
1,266.6 |
Short-term loans |
206.1 |
-127.7 |
- |
- |
-1.1 |
85.5 |
23.3 |
226.2 |
Long-term lease liabilities |
138.9 |
- |
- |
- |
3.4 |
-21.9 |
20.9 |
136.5 |
Short-term lease liabilities |
26.7 |
-34.5 |
- |
- |
0.4 |
21.9 |
14.2 |
24.8 |
Total liabilities from financing |
||||||||
activities |
1,561.9 |
-125.9 |
- |
- |
5.2 |
- |
28.7 |
1,654.0 |
EUR million |
2025 |
2024 |
Financial assets at fair value through profit or loss |
||
Derivatives |
2.3 |
12.6 |
Other investments |
2.5 |
1.4 |
Fair value through other comprehensive income |
||
Derivatives designated for hedge accounting |
8.6 |
10.2 |
Other investments |
1.2 |
1.5 |
Financial assets at amortized cost |
||
Non-current interest-bearing receivables |
2.7 |
4.2 |
Other non-current assets |
1.3 |
0.5 |
Current interest-bearing receivables |
26.1 |
24.9 |
Trade and other current receivables |
552.3 |
609.6 |
Cash and cash equivalents |
378.6 |
317.1 |
Financial assets total |
975.7 |
981.9 |
Financial liabilities at fair value through profit or loss |
||
Derivatives |
5.2 |
4.9 |
Contingent considerations |
41.0 |
- |
Fair value through other comprehensive income |
||
Derivatives designated for hedge accounting |
3.1 |
11.2 |
Financial liabilities at amortized cost |
||
Non-current interest-bearing liabilities |
1,319.9 |
1,329.1 |
Other non-current liabilities |
3.0 |
3.8 |
Current portion of long-term loans |
168.5 |
114.1 |
Short term loans |
54.5 |
118.7 |
Trade and other current liabilities |
498.0 |
571.3 |
Financial liabilities total |
2,093.2 |
2,153.1 |
In the statement of financial position derivatives are included in the following groups: Non-current interest bearing
liabilities, other non-current assets, trade and other current receivables, other non-current liabilities and trade and other
current liabilities.
ACCOUNTING PRINCIPLES
Financial assets are classified according to IFRS 9 on the basis of the Group’s business model for managing the financial
assets and the contractual cash flow characteristics to the following categories: financial assets at fair value through profit
Directors’ Report and Financial Statements 2025 | 126
or loss, financial assets at fair value through OCI and financial assets at amortized cost. Financial liabilities are classified to
Publicly traded and unlisted shares are classified as financial assets at fair value through OCI. Publicly traded shares are
recognized at fair value, which is based on quoted market prices at the reporting period closing date. Gains or losses arising
from changes in fair value are recognized in other comprehensive income and are presented in equity in fair value reserves.
Unlisted shares are measured at cost, as their fair value cannot be measured reliably.
Non-derivative assets with fixed or determinable payments that are not quoted in an active market are classified as
financial assets at amortized cost. Trade receivables and other receivables are included in this category. Trade and other
receivables are measured at amortized cost by using the effective interest rate method.
The Group recognizes a loss allowance for expected credit losses on financial assets based on the general approach, where
a loss allowance is measured at amount equal to 12-month expected credit losses if there has not been a significant increase
in credit risk since the initial recognition. The Group measures expected credit losses based on historical credit losses
experience, current and future conditions. Simplified approach is used for trade receivables that do not contain a significant
financing component, where the Group always measures the loss allowance at an amount equal to the lifetime expected
credit losses. The amount of expected credit losses is updated at each reporting date.
of foreign exchange options are calculated with the Garman-Kohlhagen model. Fair values of interest rate swaps, futures
and forwards are based on net present values of estimated future cash flows. Cash, short-term loans and overdrafts have
fair values that approximate to their carrying amounts because of their short-term nature. The recoverable amount for
financial investments is calculated as the present value of expected future cash flows, discounted at the original effective
Contingent considerations related to business combinations classified as financial liabilities are measured at fair value
through profit or loss and reported in the interest-bearing liabilities.
Financial instruments measured at fair value |
Level 1 |
Level 2 |
Level 3 |
Total 2025 |
Assets |
||||
Derivatives |
||||
Currency derivatives |
- |
5.0 |
- |
5.0 |
Interest rate derivatives |
- |
5.0 |
- |
5.0 |
Commodity derivatives |
0.9 |
- |
- |
0.9 |
Other investments |
- |
- |
3.7 |
3.7 |
Total |
0.9 |
10.0 |
3.7 |
14.7 |
Liabilities |
||||
Derivatives |
||||
Currency derivatives |
- |
6.3 |
- |
6.3 |
Interest rate derivatives |
- |
2.0 |
- |
2.0 |
Commodity derivatives |
-0.0 |
- |
- |
-0.0 |
Contingent considerations |
- |
- |
41.0 |
41.0 |
Total |
-0.0 |
8.3 |
41.0 |
49.3 |
EUR million
Financial instruments measured at fair value |
Level 1 |
Level 2 |
Level 3 |
Total 2024 |
Assets |
||||
Derivatives |
||||
Currency derivatives |
- |
14.1 |
- |
14.1 |
Interest rate derivatives |
- |
8.2 |
- |
8.2 |
Commodity derivatives |
0.4 |
- |
- |
0.4 |
Other investments |
- |
- |
2.8 |
2.8 |
Total |
0.4 |
22.4 |
2.8 |
25.6 |
Liabilities |
|
Derivatives |
Directors’ Report and Financial Statements 2025 | 127
Currency derivatives |
- |
13.7 |
- |
13.7 |
Interest rate derivatives |
- |
2.4 |
- |
2.4 |
Commodity derivatives |
-0.0 |
- |
- |
-0.0 |
Contingent considerations |
- |
- |
- |
- |
Total |
-0.0 |
16.1 |
- |
16.1 |
yield curves as well as implied volatilities.
Group’s currency and interest rate derivatives are subject to International Swaps and Derivatives Association (ISDA)
master netting agreements. The amounts are not offset in the statement of financial position.
Unquoted investments are carried at cost, as their fair value cannot be measured reliably.
The levels of the fair value hierarchy are defined as follows:
•
Level 1: Quoted prices in active markets.
•
Level 2: Valuation techniques based on observable market data.
•
The objective of financial risk management is to ensure that the Group has access to sufficient funding in the most cost-
efficient way and to minimize the impact on the Group from adverse movements in the financial markets. As defined in the
Group Treasury Policy, management of financial risks is guided and controlled by a Finance Committee, led by the Chief
Financial Officer (CFO). The Finance Committee reviews risk reports on the Group’s interest-bearing balance sheet items,
commercial flows, derivatives and foreign exchange exposures and approves required measures on a monthly basis.
The Group Treasury department at the Espoo headquarters is responsible for the Group’s funding and risk management
and serves the business units in daily financing, foreign exchange transactions and cash management coordination.
The Group is exposed to exchange rate risk through cross-border trade within the Group, exports and imports, funding of
foreign subsidiaries and currency denominated equities.
Transaction risk
The largest transaction exposures derive from capital flows, imports and exports. The objective of currency transaction
risk management is to protect the Group from negative exchange rate movements. Business units are responsible for
actively managing their currency risks related to future commercial cash flows, in accordance with policies and limits
defined by the business unit and approved by the Finance Committee. As a rule, commercial receivables and payables
recorded on the balance sheet are always fully hedged, as well as 25% of probable flows over a minimum 12 month horizon.
Directors’ Report and Financial Statements 2025 | 128
Eligible hedging instruments include currency forwards and in authorized subsidiaries also currency options. The business
units’ counterparty in hedging transactions is mainly Huhtamäki Oyj.
| USD | ||||||||||
exposure | ||||||||||
CNY exposure | in | USD exposure | ||||||||
EUR exposure | in companies | companies | in companies | USD exposure | ||||||
in companies | reporting in | reporting | reporting in | in companies | ||||||
EUR million | reporting in GBP | HKD | in AUD | EU R | reporting in IN R | |||||
2025 | 2024 | 2025 | 2024 | 2025 | 2024 | 2025 | 2024 | 2025 | 2024 | |
Trade receivables | 4.7 | 3.6 | 0.1 | 0.0 | 0.5 | 0.9 | 12.4 | 10.0 | 17.0 | 20.3 |
Trade payables | -14.0 | -12.8 | -5.8 | -3.3 | -8.7 | -6.5 | -14.3 | -10.1 | -5.0 | -9.5 |
Net balance sheet exposure | -9.3 | -9.3 | -5.7 | -3.3 | -8.2 | -5.6 | -1.9 | -0.1 | 12.0 | 10.8 |
Forecasted sales (12 months) | 21.6 | 17.0 | 0.2 | 0.2 | 3.0 | 4.6 | 29.3 | 45.9 | 49.2 | 62.8 |
Forecasted purchases (12 months) | -68.2 | -74.7 | -8.5 | -16.1 | -49.7 | -67.7 | -34.0 | -53.2 | -35.1 | -42.1 |
Net forecasted exposure | -46.6 | -57.7 | -8.1 | -15.9 | -46.7 | -63.1 | -4.7 | -7.3 | 14.1 | 20.7 |
Hedges | ||||||||||
Currency forwards (12 months) | 19.1 | 35.3 | - | 1.0 | 30.8 | 19.5 | 2.1 | 2.5 | -16.8 | -13.9 |
Currency options (12 months) | - | - | 1.9 | 6.4 | - | - | - | - | - | - |
Total net exposure | -36.8 | -31.7 | -11.9 | -11.7 | -24.1 | -49.3 | -4.5 | -4.9 | 9.3 | 17.6 |
Translation risk
As a main rule individual subsidiaries do not carry translation risk as they are financed in local currencies. As an exception,
the Finance Committee can approve the use of foreign currency borrowing in countries with high local interest rates. In
2025 and 2024 on reporting period closing dates no such borrowings were outstanding.
The main translation exposures derive from equities and permanent loans, which in substance form a part of the net
investment in the US, India and UK based subsidiaries. The Group hedges its translation risks selectively by using foreign
currency loans and derivatives. Equity hedging decisions are made by the Finance Committee, who in its decision making
considers the hedge’s estimated impact on the Group’s key indicators, long-term cash flows and hedging cost. On the
reporting period closing date the Group had outstanding translation risk hedges of USD 223 million (of which
USD 223
million in the form of derivatives) and of GBP 20 million (of which GBP 20 million in the form of derivatives) (USD 223
million, of which USD 50 million in the form of currency loans and USD 173 million in the form of derivatives and GBP 20
million, of which GBP 20 million in the form of derivatives).
A 10% appreciation of the EUR versus the USD, INR and GBP would as of the reporting period closing date decrease the
result before taxes by EUR 13.8 million (EUR 18.4 million) and the Group consolidated equity by EUR 122.5 million (EUR
145.2 million).
Interest rate risk
The interest-bearing debt exposes the Group to interest rate risk, namely re-pricing and price risk caused by interest rate
movements. Management of interest rate risk is centralized to the Group Treasury. The Group’s policy is to maintain in the
main currency debt portfolios a duration that matches a benchmark duration range based on the Group’s estimated cash
flow, selected balance sheet ratios and also the shape of the yield curve. The objective of interest rate risk management is
to reduce the fluctuation of the interest charge, enabling a more stable net income. The Group manages interest rate risk
by selection of debt interest periods and by using derivatives such as futures, forward rate agreements, interest rate swaps
and options.
At the reporting period closing date the average interest rate on Group interest-bearing net debt was 4.0% (4.1% ) and
average duration 2.0 years (1.9 years). A one percentage point rise in market interest rates would increase Group net
interest expense by EUR 3.4 million (EUR 3.4 million) over the following 12 months. A similar rise in interest rates would
increase Group equity with EUR 0.7 million (EUR 1.3 million) due to mark-to-market revaluations of interest rate
derivatives designated for cash flow hedges.
Directors’ Report and Financial Statements 2025 | 129
Currency split and repricing schedule of outstanding net debt including hedges (excl. lease liabilities)
| 2025 |
2024 |
||||||
Debt repricing in period, incl. derivatives |
|||||||
Amount |
Amount |
||||||
Currency |
EUR million |
2026 |
2027 |
2028 |
2029 |
2030- |
EUR million |
EUR |
983.9 |
238.4 |
405.5 |
150.0 |
- |
190.0 |
1,078.7 |
HKD |
81.6 |
81.6 |
- |
- |
- |
- |
93.0 |
GBP |
54.2 |
54.2 |
- |
- |
- |
- |
66.4 |
USD |
17.4 |
-16.6 |
12.8 |
21.3 |
- |
- |
-125.7 |
AUD |
16.1 |
16.1 |
- |
- |
- |
- |
22.3 |
Other |
-177.5 |
-177.5 |
- |
- |
- |
- |
-84.6 |
Total |
975.7 |
196.2 |
418.3 |
171.3 |
- |
190.0 |
1,050.1 |
The Group maintains sufficient liquidity reserves at all times by efficient cash management structures such as cash pools,
concentration accounts and overdraft financing facilities. To mitigate the refinancing risk, the Group diversifies funding
sources as well as the maturity structure of loans and debt facilities. The Group utilizes a EUR 400 million Finnish
commercial paper program and uncommitted credit facilities with relationship banks for short-term financing purposes. At
the reporting period closing date, the Group had committed credit facilities totaling EUR 450 million (EUR 450 million) of
which EUR
450 million (EUR 402 million) remained undrawn. Undrawn committed long-term debt facilities are sufficient
to ensure adequate financing resources in all foreseeable circumstances.
At the reporting period closing date, Huhtamäki Oyj has a long-term issuer credit rating of BBB- with a stable outlook from
S&P Global Ratings Europe Limited.
EUR million including interests |
2025 |
||||||||
| Maturity of facility/loan |
|||||||||
Amount |
|||||||||
Amount |
available of |
||||||||
Debt type |
drawn |
committed |
Total |
2026 |
2027 |
2028 |
2029 |
2030 |
Later |
Committed revolving facilities |
- |
450.0 |
450.0 |
- |
- |
- |
- |
450.0 |
- |
Bonds |
987.7 |
- |
987.7 |
15.4 |
374.2 |
299.1 |
- |
- |
299.0 |
Commercial paper program |
17.0 |
- |
17.0 |
17.0 |
- |
- |
- |
- |
- |
Other loans from financial institutions |
343.7 |
- |
343.7 |
162.7 |
31.0 |
- |
- |
125.0 |
25.0 |
Estimated contractual interest payments |
- |
- |
157.2 |
48.2 |
32.4 |
32.1 |
17.0 |
15.0 |
12.5 |
Contingent considerations |
41.0 |
- |
41.0 |
41.0 |
- |
- |
- |
- |
- |
Lease liabilities |
200.8 |
- |
200.8 |
27.9 |
27.4 |
23.1 |
19.4 |
16.3 |
86.7 |
Trade and other current liabilities |
521.4 |
- |
521.4 |
521.4 |
- |
- |
- |
- |
- |
Total |
2,111.5 |
450.0 |
2,718.8 |
833.6 |
465.0 |
354.3 |
36.4 |
606.3 |
423.2 |
EUR million including interests |
2024 |
||||||||
| Maturity of facility/loan |
|||||||||
Amount |
|||||||||
Amount |
available of |
||||||||
Debt type |
drawn |
committed |
Total |
2025 |
2026 |
2027 |
2028 |
2029 |
Later |
Committed revolving facilities |
47.9 |
402.1 |
450.0 |
- |
- |
- |
- |
450.0 |
- |
Bonds |
972.2 |
- |
972.2 |
- |
174.8 |
498.7 |
298.7 |
- |
- |
Commercial paper program |
72.0 |
- |
72.0 |
72.0 |
- |
- |
- |
- |
- |
Other loans from financial institutions |
303.8 |
- |
303.8 |
138.1 |
131.5 |
30.6 |
3.5 |
0.0 |
0.0 |
Estimated contractual interest payments |
- |
- |
147.8 |
50.2 |
44.9 |
37.3 |
15.4 |
- |
- |
Contingent considerations |
- |
- |
- |
- |
- |
- |
- |
- |
- |
Lease liabilities |
166.1 |
- |
166.1 |
32.2 |
35.0 |
15.5 |
13.3 |
10.7 |
59.4 |
Trade and other current liabilities |
617.1 |
- |
617.1 |
617.1 |
- |
- |
- |
- |
- |
Total |
2,179.0 |
402.1 |
2,728.9 |
909.6 |
386.2 |
582.1 |
330.9 |
460.7 |
59.4 |
Bonds
2025 |
2024 |
||||||
EUR million |
Currenc y |
Interest rate |
Outstanding loan principal amount |
Carrying amount |
Fair value |
Carrying amount |
Fair value |
2019-2026 |
EUR |
1.125% |
15.5 |
15.4 |
15.1 |
174.8 |
167.7 |
2022-2027 |
EUR |
4.250% |
375.0 |
374.2 |
375.1 |
498.7 |
503.2 |
2023-2028 |
EUR |
5.125% |
300.0 |
299.1 |
305.0 |
298.7 |
308.9 |
2025-2031 |
EUR |
3.500% |
300.0 |
299.0 |
297.5 |
- |
- |
Total |
990.5 |
987.7 |
992.8 |
972.2 |
979.7 |
||
Directors’ Report and Financial Statements 2025 | 130
The Group is exposed to credit risk from its commercial receivables and receivables from financial institutions based on
short-term investment of liquid funds as well as derivatives transactions.
The business units are responsible for the management of commercial credit risk in accordance with policies defined by
the business units and approved by the Finance Committee. A Group policy sets out certain minimum requirements as to
credit quality, sales terms and collection. The commercial credit risk for the Group as a whole is considered low as the
receivable portfolio is diversified and historical credit loss frequency is low (see Note 4.2. Trade and other current
receivables).
Liquid funds are from time to time invested in short-term bank deposits at relationship banks with a solid credit rating, in
government bonds, treasury bills or in commercial papers issued by corporate borrowers with an investment grade rating.
Credit risk stemming from receivables from financial institutions, including derivative transaction settlements, is
considered small and is managed centrally by the Group Treasury department and in accordance with limits set by the
The Group’s objective is to maintain an efficient capital structure. Consequently, the Group aims to maintain in the long
term the net debt to earnings before interest, taxes, depreciation and amortization (EBITDA) ratio in a range between 2–
3. Net debt is defined as interest-bearing liabilities less interest-bearing receivables, cash and cash equivalents.
The Group is at all times directly subject to a restriction on its net debt to EBITDA ratio (excluding items affecting
comparability) through clauses in key financing agreements. As of the balance sheet date, financing agreements subject to
the clause amounted to EUR 755 million (EUR 691 million). In addition, certain other financing agreements amounting to
EUR 991 million (EUR 975 million) are indirectly subject to this restriction through cross default clauses. The restrictions
are not seen hindering the Group’s ability to carry out its business or its strategy.
Changes in the capital structure are resulting from capital investments in the business and cash returns to shareholders,
which are funded by the stable cash flow.
Capital structure
EUR million |
2025 |
2024 |
Interest-bearing liabilities |
1,583.9 |
1,561.9 |
Interest-bearing receivables, cash and cash equivalents |
407.4 |
346.2 |
Net debt |
1,176.5 |
1,215.7 |
Total equity |
1,930.2 |
2,124.1 |
Net debt to equity (Gearing ratio) |
0.61 |
0.57 |
Net debt to EBITDA (excluding items affecting comparability) |
1.92 |
1.95 |
Directors’ Report and Financial Statements 2025 | 131
EUR million |
2025 |
2024 |
||||||
Nominal Value |
Maturity Structure |
Nominal Value |
||||||
Instrument |
2026 |
2027 |
2028 |
2029 |
2030 |
Later |
||
Currency forwards |
||||||||
for transaction risk |
||||||||
Outflow |
-89.2 |
-87.0 |
-2.1 |
- |
- |
- |
- |
-121.6 |
Inflow |
88.6 |
86.5 |
2.1 |
- |
- |
- |
- |
122.5 |
for translation risk |
||||||||
Outflow |
-212.6 |
-212.6 |
- |
- |
- |
- |
- |
-189.8 |
Inflow |
215.2 |
215.2 |
- |
- |
- |
- |
- |
180.9 |
for financing purposes |
||||||||
Outflow |
-820.1 |
-820.1 |
- |
- |
- |
- |
- |
-819.4 |
Inflow |
817.5 |
817.5 |
- |
- |
- |
- |
- |
826.5 |
Currency options |
||||||||
for transaction risk |
||||||||
Bought options |
7.4 |
7.4 |
- |
- |
- |
- |
- |
12.2 |
Sold options |
-7.4 |
-7.4 |
- |
- |
- |
- |
- |
-12.2 |
Interest rate swaps |
||||||||
EUR |
-300.0 |
- |
- |
-150.0 |
- |
- |
-150.0 |
-200.0 |
USD |
46.8 |
12.8 |
12.8 |
21.3 |
- |
- |
- |
71.8 |
Fair values of derivative financial instruments
EUR million |
2025 |
2024 |
||||
Positive |
Negative |
Net Fai r |
Positive |
Negative |
Net Fair |
|
Instrument |
Fair values |
Fair values |
values |
Fair values |
Fair values |
values |
Currency forwards |
||||||
for transaction risk |
0.6 |
-1.5 |
-1.0 |
3.2 |
-2.0 |
1.1 |
of which cash flow hedges 1 |
0.0 |
-0.4 |
-0.4 |
1.9 |
-0.9 |
1.0 |
for translation risk |
3.3 |
-0.2 |
3.1 |
0.1 |
-7.9 |
-7.9 |
of which hedges of net investment 2 |
3.3 |
-0.2 |
3.1 |
0.1 |
-7.9 |
-7.9 |
for financing purposes |
2.1 |
-4.5 |
-2.4 |
11.2 |
-3.7 |
7.5 |
Currency options |
||||||
for transaction risk |
0.0 |
-0.0 |
0.0 |
0.1 |
-0.2 |
-0.2 |
Interest rate swaps 3 |
||||||
EUR |
2.9 |
-2.0 |
0.9 |
4.3 |
-2.4 |
1.9 |
of which fair value hedges 4 |
2.9 |
-2.0 |
0.9 |
4.3 |
-2.4 |
1.9 |
USD |
2.1 |
- |
2.1 |
3.9 |
- |
3.9 |
of which cash flow hedges 5 |
2.1 |
- |
2.1 |
3.9 |
- |
3.9 |
Commodities |
0.9 |
-0.0 |
0.9 |
0.4 |
-0.0 |
0.4 |
1
Fair values of currency forwards designated as cash flow hedges are reported in fair value and other reserves.
2
Fair values of currency forwards designated as hedges of net investment in foreign subsidiaries are reported in equity in translation difference.
3
Fair values of interest rate swaps include accrued interest which is reported in the income statement in financial expense
4
Fair values of interest rate swaps designated as fair value hedges are reported in the income statement in financial income.
5
Directors’ Report and Financial Statements 2025 | 132
6. Other disclosures
Sustainability is integral to Huhtamaki’s 2030 Strategy. The ambition is to become the first choice in sustainable packaging
solutions. The sustainability agenda focuses on two key topics: transitioning to a circular economy and taking climate action,
whilst not forgetting other environmental and social aspects of sustainability.
To achieve Huhtamaki’s ambition, management is continuously considering climate related matters when conducting the
business. These considerations and related assumptions have been reflected in the estimates and judgements of the
reported amounts of assets, liabilities, income and expense.
The items in the consolidated financial statements that are impacted by climate related assumptions in particular:
•
Goodwill: The Group has defined EBIT and discount rates as the key assumptions in the goodwill impairment
testing. Climate related risks and opportunities have been recognized and evaluated as part of the strategy-based
EBIT estimates together with other factors impacting the business development. (Note 3.3. Goodwill impairment
testing)
•
Intangible and tangible assets:
o
Climate related matters may impact the recognition and measurement of intangible and tangible assets.
In the end of the reporting period, climate related matters did not have material impact to the estimated
useful lives of the assets, nor to the impairment of assets. The Group continues to invest in sustainable
packaging solutions. (Note 3.2. Goodwill and intangible assets and note 3.4. Tangible assets)
o
Emission rights and renewable energy certificates are in scope of IAS 38 Intangible assets. (Note 3.2.
Goodwill and intangible assets)
•
Other non-current assets: The Group has signed two major virtual power purchase agreements to support its
target of reducing Scope 1 and 2 emissions by 50.44% by 2030, compared to the 2022 base year. The agreements
are in scope of IFRS 9 Financial Instruments. (Note 5.6. Financial assets and liabilities by category).
•
Inventory: Climate related matters may impact the measurement of the inventories. In the end of the reporting
period, climate related matters did not have material impact to the net realizable value. (Note 4.1. Inventories)
•
Interest-bearing liabilities:
o
In 2024, the Group has signed a EUR 450 million sustainability-linked syndicated multicurrency revolving
credit facility loan agreement (“RCF”). The interest margin is tied to three sustainability indicators: 1)
Absolute Scope 1 and 2 greenhouse gas emissions amount, 2) Share of non-hazardous waste recycled and
3) EcoVadis rating. The loan margin decreases or increases according to the number of targets achieved
for the three sustainability indicators. (Note 5.5. Interest-bearing liabilities)
o
In 2023, the Group has signed a EUR 125 million sustainability-linked bilateral term loan facility
agreement. The interest margin is tied to three sustainability indicators: 1) Absolute Scope 1 and 2
greenhouse gas emissions amount, 2) Share of non-hazardous waste recycled and 3) Ecovadis Rating.
(Note 5.5. Interest-bearing liabilities)
o
In 2022, the Group issued a EUR 500 million senior unsecured sustainability-linked bond under its
Sustainability-Linked Bond Framework. The interest rate of the bond is subject to increase upon the
failure to satisfy certain sustainability performance target. The chosen target for the sustainability-linked
bond is related to greenhouse gas emission reductions. In March 2025, it was announced that the Group
had met the sustainability target as set out in the terms and conditions of this sustainability-linked bond.
In September 2025, the Group repurchased EUR 125 million of this bond through a tender offer. (Note
5.5. Interest-bearing liabilities)
•
Employee benefits: Huhtamaki Global Sustainability and Safety Index (GSSI) is one of the business objectives for
employees within the global short-term incentive plan. In 2025, the GSSI consisted of metrics related to e.g.
renewable or recycled material use, certified of recycled fiber use, renewable electricity consumption, non-
Huhtamaki Group’s related parties include the parent company, subsidiaries and pension funds that are separate entities.
Related parties also include the key management, their close family members and entities in which they have control or
joint control. The key management personnel are the members of the Global Executive Team and the Board of Directors.
Directors’ Report and Financial Statements 2025 | 133
Related parties also include Shareholders of Huhtamäki Oyj controlling more than ten per cent of the shares or voting
Details of transactions and outstanding balances between the Group and its related parties are disclosed below. Intragroup
related party transactions and balances are eliminated on consolidation.
Compensation to the Global Executive Team (including the President and CEO) and the Board of Directors in total is EUR
9.3 million (EUR 12.3 million) and is further disclosed in the following tables. In addition, the key management is receiving
dividends based on their ownership of Huhtamäki Oyj shares. There has not been any other transactions between the
Group and the key management, their close family members or entities in which they have control or joint control.
The President and CEO Ralf K. Wunderlich and some of the other Global Executive Team members belong to a
supplementary defined contribution pension plan. In 2025 the Company paid a total of EUR 704 thousand (EUR 447
thousand) to pension arrangements of the GET members.
Members of the Board of Directors and the Global Executive Team owned a total of 181,243 shares (217,740 shares)
shares at the end of the year 2025.
Employee benefits of CEO and members of the Global Executive Team
EUR million | 2025 | 2024 |
Salaries and other short-term employee benefits | 7.4 | 8.7 |
Post-employment benefits | 0.7 | 0.4 |
Share based payments | 0.2 | 2.2 |
CEO and members of the Global Executive Team in total | 8.3 | 11.3 |
Remunerations of CEO and members of the Board of Directors
In thousand euros | 2025 | 2024 |
President and CEO Ralf K. Wunderlich (from January 15, 2025) | 1,275 | - |
President and CEO Charles Héaulmé (until January 15, 2025) | 3,333 | 4,205 |
Board members | ||
Vauramo Pekka | 216 | 185 |
Tuomas Kerttu | 117 | 123 |
Alonso Mercedes | 107 | 108 |
Baillie Doug | 107 | 108 |
Beckler Robert K. | 106 | 85 |
Kairisto Essimari | 77 | - |
Korhonen Anja | 117 | 119 |
Lindwall Pauline | 101 | 103 |
Michalski Johann Christoph | 84 | - |
Wunderlich Ralf K. | 1 | 100 |
Ala-Pietilä Pekka | - | 48 |
Barker Willam R. | - | 23 |
CEO and Board in total | 5,641 | 5,207 |
Pension funds
The Group’s related parties include post-employment benefit plans that are separate entities. These entities are in Finland,
India, the UK and the U.S. For more information, see Note 2.2. Employee benefits. The Group made EUR 3.0 million (EUR
2.5 million) contributions to the plans and there was related outstanding balance of EUR 0.2 million (EUR 0.2 million). There
Directors’ Report and Financial Statements 2025 | 134
Performance Share Arrangement 2010
On March 12, 2010 the Board of Directors of the Company decided on establishing a Performance Share Arrangement to
form a part of the long-term incentive and retention program for the key personnel of the Company and its subsidiaries.
The Performance Share Arrangement offers a possibility to earn the Company shares as remuneration for achieving
established targets. The Arrangement consists of annually commencing individual three-year performance share plans. A
possible reward shall be paid during the calendar year following each three-year plan. Commencement of each three-year
plan will be separately decided by the Board of Directors.
GET members (excl. President and CEO) that are participants to the performance share plan shall hold at least half (50%)
of the shares received until they hold shares received from the performance share plans corresponding in aggregate to the
value of their annual gross base salary. President and CEO shall hold at least half (50%) of the shares received until he holds
shares received from the performance share plans corresponding in aggregate to the value of 3 times his annual gross base
salary.
The ownership requirement applies until termination of employment or service. The maximum value of the reward
payable to the participants based on the Performance Share Arrangement is limited by a cap linked to Company’s share
price development (Performance Share Plan 2021–2023 and onwards).
Performance Share Plan 2022–2024
The Performance Share Plan 2022–2024 commenced in 2022. The reward was based on the Group’s cumulative adjusted
earnings per share (EPS) for the earning period 2022–2024 and was paid in 2025 to 109 participants.
As set forth in the Performance Share Arrangement 2010, the achievement of performance criteria, Group’s cumulative
adjusted earnings per share (EPS), was 98.91% of maximum for the earnings period 2022-2024. According to the terms
and conditions of the Performance Share Arrangement, 381,375 (gross) shares were paid in March 2025. Applicable taxes
were withheld from the gross reward before paying remaining net shares to the participants. Fair value of the paid shares
on the grant date was EUR 35.86 per share. Pursuant to the IFRS standards, an expense relating to the Performance Share
Plan 2022–2024 totaling EUR 13,904,143 was recorded for the reporting periods 2022–2024. This amount includes an
expense totaling EUR 3,683,987 which was recorded in the reporting period ending 31 December 2024.
Performance Share Plan 2023–2025
The Performance Share Plan 2023–2025 commenced in 2023 and the reward is based on the Group’s cumulative adjusted
earnings per share (EPS) for the earning period 2023–2025. The Performance Share Plan 2023–2025 was directed to 86
persons at the end of 2025. The target, Group’s cumulative adjusted earnings per share (EPS) for the earning period 2023–
2025, set forth in the Performance Share Arrangement 2010, was not reached. Pursuant to the IFRS standards, no expense
relating to the Performance Share Plan 2023–2025 was recorded for the reporting periods 2023–2025. For the reporting
period ending 31 December 2024, a positive impact totaling EUR 1,002,554 resulting from prior years’ accrual reversing
was recorded.
Performance Share Plan 2024–2026
The Performance Share Plan 2024–2026 commenced in 2024 and the possible reward will be based on the Group’s
cumulative adjusted earnings per share (EPS) for the earning period 2024–2026. The reward, if any, will be paid during
2027. The Performance Share Plan 2024–2026 was directed to 110 persons at the end of 2025.
Performance Share Plan 2025–2027
The Performance Share Plan 2025–2027 commenced in 2025 and the possible reward will be based on the Group’s
cumulative adjusted earnings per share (EPS)
and absolute total shareholder return (aTSR) for the earning period 2025–
2027. The reward, if any, will be paid during 2028. The Performance Share Plan 2025–2027 was directed to 132 persons
at the end of 2025.
Performance Share Plan |
2022–2024 |
2023–2025 |
2024–2026 |
2025–2027 |
Amount of granted shares (gross) |
600,000 1 |
590,000 1 |
600,000 1 |
600,000 |
Share price at grant date, EUR |
35.86 |
30.58 |
37.54 |
34.08 |
Actual achievement (% of maximum) |
98.91% |
0.00% |
- |
- |
Directors’ Report and Financial Statements 2025 | 135
Number of achieved shares (gross) based on performance | ||||
criteria | 381,375 | - 2 | - | - |
Number of participants of December 31, 2025 | 109 | 86 | 110 | 132 |
Share delivery | 2025 | 2026 | 2027 | 2028 |
Performance criteria | adjusted EPS | adjusted EPS | adjusted EPS | adjusted EPS, |
absolute TSR |
1
In case shares are paid as reward, the net number of shares which remains after deducting the number of shares corresponding to the applicable taxes will be delivered to
participants.
2
The target, adjusted EPS, set forth in the Performance Share Arrangement 2010 for the earnings period 2023– 2025, was not reached, and consequently, no shares will be
paid in 2026.
Restricted Share Arrangement 2021
As part of the long-term incentive and retention program for the key personnel of Huhtamaki, the Board of Directors of
the Company decided on February 10, 2021 on establishing a restricted share arrangement as a share-based long-term
incentive arrangement (Restricted Share Arrangement). The aim of the restricted share arrangement is to retain, motivate
and reward selected key employees in order to increase the shareholder value in the long term. The restricted share
arrangement consists of individual share plans. The commencement of each plan will be separately decided by the Board
of Directors. Each plan comprises of three consecutive calendar years. For potential share plans the aggregate maximum
number of shares payable is 60,000 shares (gross) per plan.
Share rewards will be paid in shares of the Company. Applicable taxes are withheld from the gross reward before paying
remaining net shares to the participants. No reward will be paid if the participant's employment or service ends before the
payment of the reward. The members of the Global Executive Team (excl. President and CEO) shall retain at least 50% of
the shares received until the value of their share ownership in the Company corresponds to their annual gross base salary.
President and CEO shall hold at least half (50%) of the shares received until he holds shares received from the long-term
incentive plans corresponding in aggregate to the value of 3 times his annual gross base salary. The maximum value of the
reward payable to the participants based on the restricted share arrangement is limited by a cap linked to Company’s share
price development.
Restricted Share Plan 2022–2024
The Restricted Share Plan 2022–2024 commenced in 2022 and the reward was paid in 2025 based on continuous
employment. Group’s adjusted EBIT margin of 8% for the result release preceding the payment was used as an underlying
threshold criterion for share payment. Financial year 2024 Group adjusted EBIT margin was 10.1% and thus there was no
restriction to payout.
According to the terms and conditions of the Restricted Share Arrangement, 10,000 shares (gross) were paid in March
2025 to 6 participants. Applicable taxes were withheld from the gross reward before paying remaining net shares to the
participants. Fair value of the paid shares on the grant date was ranging from EUR 31.29-37.23 per share. Pursuant to the
IFRS standards, an expense relating to the Restricted Share Plan 2022–2024 totaling EUR 305,738 was recorded for the
reporting periods 2022–2024. This amount includes an expense totaling EUR 184,733 which was recorded in the
reporting period ending 31 December 2024.
Restricted Share Plan 2023–2025
The Restricted Share Plan 2023–2025 commenced in 2023 and the reward will be paid during 2026 based on continuous
employment. Group’s adjusted EBIT margin of 8% for the result release preceding the payment is used as an underlying
threshold criterion for share payment. The Restricted Share Plan 2023–2025 was directed to 5 persons at the end of 2025.
Financial year 2025 Group adjusted EBIT margin was 10.2% and thus there is no restriction to payout. According to the
terms and conditions of the Restricted Share Arrangement, 25,500 shares will be paid in March 2026. Applicable taxes are
withheld from the gross reward before paying remaining net shares to the participants. Fair value of the shares on the grant
date was ranging from EUR 30.56-37.23 per share. Pursuant to the IFRS standards, an expense relating to the Restricted
Share Plan 2023–2025 totaling EUR 819,020 was recorded for the reporting periods 2023–2025. This amount includes
an expense totaling EUR 682,790 which was recorded in the reporting period ending 31 December 2025.
Restricted Share Plan 2024-2026
Directors’ Report and Financial Statements 2025 | 136
The Restricted Share Plan 2024–2026 commenced in 2024 and the reward will be paid during 2027 based on continuous
employment. Group’s adjusted EBIT margin of 8% for the result release preceding the payment is used as an underlying
threshold criterion for share payment. The Restricted Share Plan 2024–2026 was directed to 27 persons at the end of
2025.
Restricted Share Plan 2025-2027
The Restricted Share Plan 2025–2027 commenced in 2025 and the reward will be paid during 2028 based on continuous
employment. Group’s adjusted EBIT margin of 8% for the result release preceding the payment is used as an underlying
threshold criterion for share payment. The Restricted Share Plan 2025–2027 was directed to 11 persons at the end of
2025.
Restricted Share Plan |
2022–2024 |
2023–2025 |
2024–2026 |
2025–2027 |
Amount of granted shares (gross) |
10,000 1 |
25,500 1 |
39,000 1 |
27,500 1 |
Share price at grant date, EUR |
37.23–31.29 |
37.23–30.56 |
38.16–30.66 |
33.34–29.70 |
Number of achieved shares (gross) based on performance criteria |
10,000 |
25,500 2 |
- |
- |
Number of participants of December 31, 2025 |
6 |
5 |
27 |
11 |
Share delivery |
2025 |
2026 |
2027 |
2028 |
Performance criteria |
Continuous employment 3 |
|||
1
In case shares are paid as reward, the net number of shares which remains after deducting the number of shares corresponding to the applicable taxes will be
delivered to participants.
2
Shares will be paid in March 2026.
3
However, if Huhtamaki Group’s adjusted EBIT margin in the result release preceding the payment of the rewards is under 8%, no shares will be paid.
The Group has incentive plans which include equity-settled share-based payment transactions. The fair value of equity-
settled share-based payments granted is recognized as an employee expense with a corresponding increase in equity.The
fair value is measured at grant date and spread over the vesting period during which the employees become unconditionally
entitled to the awards. The amount recognized as an expense is adjusted to reflect the actual number of awards that will
be vested. Non-market vesting conditions are not included in the value of share-based instruments but in the number of
instruments that are expected to vest. At each reporting period closing date, the estimates about the number of awards
that are expected to vest are revised and the impact is recognized in income statement. Market condition, in this case
Absolute Total Shareholder Return (TSR), is taken into account when determining the fair value at grant and it will not be
changed during the plan. The fair value of the cost estimate will only be changed as far as service condition and non-market
Right of use assets are presented in Note 3.4. Tangible Assets. Right of use depreciations are presented in Note 2.3.
Depreciation, amortization and impairment. Lease liabilities are presented in Note 5.5. Interest-bearing liabilities. Lease
liability interests are presented in Note 5.1. Net Financial Items. Items where Huhtamaki is the lessor are presented in Note
5.2. Interest-bearing receivables.
Lease expenses
EUR million |
2025 |
2024 |
Short-term leases |
11.7 |
11.0 |
Low-value leases |
-0.3 |
0.9 |
Variable lease payments based on use/performance |
1.4 |
2.2 |
Lease payments in Profit or Loss |
12.8 |
14.2 |
Cash based lease payments in total |
51.3 |
48.7 |
Directors’ Report and Financial Statements 2025 | 137
Leases
The leases that the Group recognizes in the statement of financial position include mainly land, building, machinery and
equipment. Short-term leases (lease term of 12 months or less) and leases for which the underlying asset is of low value
are not booked to the statement of financial position. Payments for short-term and low-value leases and variable lease
payments are expensed in P&L.
Right of use (ROU) assets are recognized at the commencement date of the lease. ROU assets are measured at cost less
accumulated depreciation and impairment losses. The costs include the amount of the initial measurement of the lease
liability, any lease payments made at or before the commencement date less lease incentives received, any direct costs and
an estimate of dismantling costs. The carrying amount is further adjusted for any remeasurement of the lease liability.
Depreciation is expensed to the income statement on a straight-line basis over the lease term. The lease term includes the
noncancelable period of lease together with any extension or termination options that are reasonably certain to be
exercised. ROU assets are presented as tangible assets in the statement of financial position.
Lease liabilities are recognized at the commencement date of the lease. Lease liabilities are measured at the present value
of future lease payments using an effective interest method. The carrying amount is reduced to reflect the lease payments
made and the interest expense is allocated over the lease term. A lease liability is remeasured, when there is a lease
modification or reassessment. Lease liabilities are presented as current and non-current interest-bearing liabilities in the
EUR million |
2025 |
2024 |
Capital expenditure |
36.8 |
71.3 |
Leases |
8.5 |
77.8 |
Total commitments |
45.3 |
149.1 |
EUR million |
2025 |
2024 |
Capital expenditure commitments |
||
Under 1 year |
36.8 |
71.3 |
Total |
36.8 |
71.3 |
EUR million |
2025 |
2024 |
Lease commitments |
||
Not later than 1 year |
2.1 |
3.1 |
Later than 1 year and not later than 5 years |
6.4 |
23.8 |
Later than 5 years |
- |
50.9 |
Total |
8.5 |
77.8 |
ACCOUNTING PRINCIPLES
Commitments
Capital expenditure commitments are commitments at the balance sheet date to acquire tangible and intangible assets in
the future.
Lease commitments are commitments where lease contracts have been signed for the right to use of tangible assets in the
The European Commission announced on March 7, 2019 to open an investigation into Luxembourg's tax practices, in
particular Huhtamaki tax rulings from the years 2009, 2012 and 2013. The investigation is not targeted at Huhtamaki and
Huhtamaki has not been approached by the European Commission. The European Commission is investigating whether
Directors’ Report and Financial Statements 2025 | 138
the tax ruling could potentially be considered as prohibited state aid by Luxembourg. State aid means that a public authority
has granted a selective (not available for everyone) competitive advantage to a company in Europe. Huhtamaki monitors
the situation and is cooperating with authorities. Huhtamaki complies with all laws and regulations and it is important for
Huhtamaki to secure predictability in financial and tax affairs. In Huhtamaki’s view, the structure in question is legal and
On January 30, 2026, Huhtamaki announced the appointment of Riikka Tieaho as Executive Vice President, Sustainability,
Corporate Affairs & Legal, General Counsel and member of the GET. She will start in her role no later than June 1, 2026,
Directors’ Report and Financial Statements 2025 | 139
Country |
Company |
Group holding, % |
Australia |
Huhtamaki Australia Pty Limited |
100.0 |
Huhtamaki Holdings Pty Limited |
100.0 |
|
Huhtamaki Tailored Packaging Pty Ltd |
100.0 |
|
Brazil |
Huhtamaki do Brasil Ltda |
100.0 |
Huhtamaki Embalagens Flexíveis do Brasil Ltda |
100.0 |
|
Czech Republic |
HuhtaBu s.r.o. |
100.0 |
Huhtamaki Ceska republika, a.s. |
100.0 |
|
Huhtamaki Flexible Packaging Czech a.s. |
100.0 |
|
LeoCzech spol s r.o. |
100.0 |
|
Egypt |
Elif Global Packaging S.A.E. |
100.0 |
Huhtamaki Egypt LLC |
75.0 |
|
Huhtamaki Flexible Packaging Egypt LLC |
100.0 |
|
Finland |
Huhtamaki Foodservice Nordic Oy |
100.0 |
Huhtamäki Holding Oy |
100.0 |
|
Huhtamäki Securities Oy |
100.0 |
|
France |
Huhtamaki Foodservice France S.A.S |
100.0 |
Huhtamaki Holdings France S.N.C. |
100.0 |
|
Huhtamaki La Rochelle S.A.S |
100.0 |
|
Germany |
Huhtamaki Flexible Packaging Germany GmbH & Co. KG |
100.0 |
Huhtamaki Foodservice Germany Holding GmbH |
100.0 |
|
Huhtamaki Foodservice Germany Operations GmbH & Co. KG |
100.0 |
|
Huhtamaki Foodservice Germany Sales GmbH & Co. KG |
100.0 |
|
Huhtamaki Germany GmbH |
100.0 |
|
Huhtamaki Grundstücksverwaltungs GmbH Alf |
100.0 |
|
Huhtamaki Grundstücksverwaltungs GmbH Ronsberg |
100.0 |
|
Huhtamaki Real Estate GmbH |
100.0 |
|
Huhtamaki Real Estate Holding B.V. & Co. KG |
100.0 |
|
Hungary |
Huhtamaki Hungary Kft |
100.0 |
India |
Huhtamaki Foodservice Packaging India Private Limited |
100.0 |
Huhtamaki India Limited 3 |
67.7 |
|
Ireland |
Huhtamaki CupPrint Limited |
100.0 |
Huhtamaki Finance Ireland I Unlimited Company |
100.0 |
|
Huhtamaki Finance Ireland II Unlimited Company |
100.0 |
|
Italy |
Huhtamaki Flexibles Italy S.r.l. |
100.0 |
Kenya |
Huhtamaki Flexible Packaging Kenya Limited |
100.0 |
Luxembourg |
Huhtamaki Holding S.à r.l. |
100.0 |
Huhtamaki S.à r.l. |
100.0 |
|
Malaysia |
BPC Trading Sdn. Bhd. |
100.0 |
Huhtamaki Foodservice Malaysia Sdn. Bhd. |
100.0 |
|
Mexico |
Huhtamaki Mexicana S.A. de C.V. |
100.0 |
Netherlands |
Huhtamaki Beheer V B.V. |
100.0 |
Huhtamaki Beheer XI B.V. |
100.0 |
|
Huhtamaki Brazil Investments B.V. |
100.0 |
|
Huhtamaki B.V. |
100.0 |
|
Huhtamaki Finance B.V. |
100.0 |
|
Huhtamaki Finance Company I B.V. |
100.0 |
|
Huhtamaki Finance Company II B.V. |
100.0 |
|
Huhtamaki Finance Company IV B.V. |
100.0 |
|
Huhtamaki Finance Company V B.V. |
100.0 |
|
Huhtamaki German Holdings B.V. |
100.0 |
|
Huhtamaki International B.V. |
100.0 |
|
Huhtamaki Molded Fiber Technology B.V. |
100.0 |
|
Huhtamaki Nederland B.V. |
100.0 |
|
Huhtamaki Paper Recycling B.V. |
100.0 |
|
Huhtavefa B.V. |
100.0 |
|
New Zealand |
Huhtamaki Henderson Limited |
100.0 |
Huhtamaki New Zealand Limited |
100.0 |
|
Huhtamaki (NZ) Holdings Limited |
100.0 |
|
Interpac Packaging Limited |
100.0 |
|
Norway |
Huhtamaki Norway AS |
100.0 |
Huhtamaki (Norway) Holdings AS |
100.0 |
|
People’s Republic of China |
Guangdong Josco Disposable Product Ltd |
100.0 |
Huhtamaki Foodservice (Tianjin) Limited |
100.0 |
|
Huhtamaki Foodservice (Xuzhou) Limited |
100.0 |
|
Huhtamaki (Guangzhou) Limited |
100.0 |
|
Huhtamaki (Tianjin) Limited |
100.0 |
|
People’s Republic of China/Hong Kong |
Dixie Cup (Hong Kong) Limited |
54.0 |
GreenGood Eco-Tech Co. Limited |
100.0 |
Directors’ Report and Financial Statements 2025 | 140
Huhtamaki Hong Kong Limited |
100.0 |
|
Josco (Holdings) Limited |
100.0 |
|
Joseph Wong & Company (H.K.) Limited |
100.0 |
|
Philippines |
Huhtamaki Philippines, Inc. |
100.0 |
Poland |
Huhtamaki Foodservice Czeladz Sp. z o.o. |
100.0 |
Huhtamaki Foodservice Gliwice Sp. z o.o. |
100.0 |
|
Huhtamaki Foodservice Poland Sp. z o.o. |
100.0 |
|
Saudi Arabia |
Arabian Paper Products Company |
50.0 1 |
Singapore |
Huhtamaki Singapore Pte. Ltd. |
100.0 |
South Africa |
Gravics Systems South Africa (Pty) Limited |
100.0 |
Huhtamaki Flexible Packaging South Africa (Pty) Limited |
70.0 |
|
Huhtamaki South Africa Holdings (Pty) Ltd |
70.0 |
|
Huhtamaki South Africa (Pty) Ltd |
70.0 |
|
Spain |
Huhtamaki Spain S.L. |
100.0 |
Switzerland |
Huhtamaki AG |
100.0 |
Huhtamaki Finance AG |
100.0 |
|
Thailand |
Huhtamaki Holding (Thailand) Ltd. |
100.0 |
Huhtamaki (Thailand) Ltd. |
100.0 |
|
Türkiye |
Elif Global Ambalaj Pazarlama Anonim Ş irketi |
100.0 |
Elif Holding Anonim Ş irketi |
100.0 |
|
Elif Plastik Ambalaj Sanayi ve Ticaret Anonim Ş irketi |
100.0 |
|
Huhtamaki Turkey G ı da Servisi Ambalaj ı A. Ş . |
100.0 |
|
Ukraine |
Huhtamaki Foodservice Ukraine LLC |
100.0 |
United Arab Emirates |
Arabian Paper Products FZCO |
50.0 1 |
Huhtamaki Flexible Packaging Middle East LLC |
49.0 2 |
|
Huhtamaki Holding UAE Limited |
100.0 |
|
Positive Packaging United (M.E.) FZCO |
100.0 |
|
Primetech (M.E.) FZE |
100.0 |
|
United Kingdom |
2 View Media Limited |
100.0 |
BCP Corporate Limited |
100.0 |
|
Huhtamaki Anglo Holding |
100.0 |
|
Huhtamaki BCP Limited |
100.0 |
|
Huhtamaki Finance Limited |
100.0 |
|
Huhtamaki Foodservice Delta Limited |
100.0 |
|
Huhtamaki Foodservice Portsmouth Limited |
100.0 |
|
Huhtamaki Holding I Limited |
100.0 |
|
Huhtamaki Holding II Limited |
100.0 |
|
Huhtamaki Limited |
100.0 |
|
Huhtamaki (Lisburn) Limited |
100.0 |
|
Huhtamaki (Lurgan) Limited |
100.0 |
|
Huhtamaki Metallized Products USA Limited |
100.0 |
|
Huhtamaki (UK) Limited |
100.0 |
|
Sweetheart International Limited |
100.0 |
|
United States |
Batavia Substation Holding Group, Inc. |
95.0 |
CupPrint LLC |
100.0 |
|
Huhtamaki Americas, Inc. |
100.0 |
|
Huhtamaki Foundation, Inc. |
100.0 |
|
Huhtamaki Hardship Fund, Inc. |
100.0 |
|
Huhtamaki, Inc. |
100.0 |
|
Vietnam |
Huhtamaki (Vietnam) Limited |
100.0 |
1
The Group’s control is based on a Shareholders’ Agreement according to which the Group has control in the company.
2
The Group has control in the company and can consolidate the company as a fully owned subsidiary based on a Shareholders’ Agreement.
3
For more information: www.huhtamaki.com/en-in/flexible-packaging/investors/
The following German subsidiaries are exempt from the duty of corporations to audit and disclose financial statements pursuant to
German legislation (Sec. 264b HGB): Huhtamaki Flexible Packaging Germany GmbH & Co. KG, Huhtamaki Foodservice Germany
Directors’ Report and Financial Statements 2025 | 141
Parent company financial statements
Parent company income statement (FAS)
EUR
Note
2025
2024
Net sales
1
229,488,812.03
223,554,712.50
Other operating income
2
46,024,035.28
4,459,764.62
Materials and services
3
-123,709,049.30
-113,823,723.08
Personnel expenses
4
-33,631,426.76
-34,966,895.69
Depreciation, amortization and impairment
5
-18,275,791.55
-3,382,550.00
Other operating expenses
6
-78,742,330.95
-7,752,151.50
Earnings before interest and taxes
21,154,248.75
68,089,156.85
Net financial income/expense
7
106,315,262.10
714,355,875.00
Profit before appropriations and taxes
127,469,510.85
782,445,031.85
Income tax expense
8
-1,032,495.63
-7,819,560.00
Profit for the period
126,437,015.22
774,625,471.85
Parent company balance sheet (FAS)
Assets
EUR
Note
2025
2024
Non-current assets
Intangible assets
9
Intangible rights
1,155,702.76
795,710.88
Development expenditure
10,135,490.69
10,988,929.08
Other capitalized expenditure
1,383,056.92
1,829,061.58
Construction in progress and advance payments
306,187.61
15,317,067.16
12,980,437.98
28,930,768.70
Tangible assets
10
Machinery and equipment
256,769.89
99,487.90
Other tangible assets
96,301.19
96,301.19
353,071.08
195,789.09
Investments
11
Investment in subsidiaries
3,164,329,851.85
3,164,309,851.85
Other shares and holdings
2,551,666.21
1,614,568.11
3,166,881,518.06
3,165,924,419.96
Current assets
Non-current receivables
Loan receivables
12
492,823,346.85
324,126,745.00
Current receivables
Sales receivables
12
204,005,602.02
204,370,609.89
Loan receivables
12
-3.19
199,472,498.07
Accrued income
13
27,618,695.09
53,293,998.78
Other receivables
12
2,178,393.71
903,860.68
726,626,034.48
782,167,712.42
Cash and bank
15,919,224.45
2,658,533.82
Total assets
3,922,760,286.05
3,979,877,223.99
Directors’ Report and Financial Statements 2025 | 142
Equity and liabilities
EUR
Note
2025
2024
Shareholders' equity
14
Share capital
366,385,309.00
366,385,309.00
Premium fund
115,023,103.38
115,023,103.38
Retained earnings
1,406,187,282.46
746,945,646.21
Profit for the period
126,437,015.22
774,625,471.85
2,014,032,710.06
2,002,979,530.44
Liabilities
Non-current liabilities
Loans from financial institutions
15
1,148,360,744.87
1,175,593,444.49
Other non-current liabilities
16
17,787.70
219,804.04
1,148,378,532.57
1,175,813,248.53
Current liabilities
Loans from financial institutions
15
157,383,883.27
156,351,303.33
Other loans
15
528,257,523.37
564,004,861.93
Trade payables
17
21,029,268.98
25,093,309.45
Accrued expenses
18
40,107,902.19
47,193,691.67
Other current liabilities
17
13,570,465.61
8,441,278.64
760,349,043.42
801,084,445.02
Total equity and liabilities
3,922,760,286.05
3,979,877,223.99
Parent company cash flow statement (FAS)
EUR
2025
2024
Earnings before interest and taxes
21,154,248.75
68,089,156.85
Adjustments
Depreciation and amortization
18,275,791.55
3,382,550.00
Change in non-interest-bearing receivables
2,342,971.66
-14,471,861.62
Change in non-interest-bearing payables
6,721,063.47
2,180,338.66
Net financial income and expense
-23,896,129.16
-52,350,385.73
Taxes paid
-657,126.85
-7,302,372.55
Net cash flow from operating activities
23,940,819.42
-472,574.39
Capital expenditure
-6,497,310.72
-6,889,682.30
Dividends and repayments of capital
143,533,382.86
-
Change in non-current deposits
-169,653,699.95
-151,030,641.71
Change in current deposits
199,472,501.26
215,701,956.59
Net cash flow from investing activities
166,854,873.45
57,781,632.58
Change in non-current loans
-27,216,622.75
-81,831,489.44
Change in current loans
-34,714,758.62
38,861,454.48
Dividends paid
-115,603,620.88
-109,767,284.77
Cash flow from financing activities
-177,535,002.25
-152,737,319.73
Change in liquid assets
13,260,690.62
-95,428,261.54
Liquid assets on January 1
2,658,533.81
98,086,795.35
Liquid assets on December 31
15,919,224.43
2,658,533.81
Parent company accounting principles
The financial statements of Huhtamäki Oyj have been prepared according to Finnish Accounting Standards (FAS). The
financial statements have been prepared on the basis of historical costs and do not take into account increases in the fair
value of assets, unless otherwise stated.
Directors’ Report and Financial Statements 2025 | 143
The company changed the presentation of the account receivables from other receivables to account receivables in the
balance sheet. The comparative information is restated.
Foreign currency
Foreign currency transactions are recorded according to the exchange rates prevailing on the transaction date.
Receivables and payables are revalued at the rate of exchange on the balance sheet date. The exchange rate used at the
balance sheet date is the rate of the date prior to the last working day of the reporting period closing date. Exchange rate
differences arising from translation of receivables are recognized under other operating income, and exchange rate
differences on payables under costs and expenses. Exchange rate differences on translation of financial items, such as loans
and deposits, are recognized under financial income and expenses.
Derivative instruments
Foreign exchange derivative contracts are used for hedging the company’s currency position. The company manages its
interest rate risks using interest rate derivatives. The prudence principle is applied to derivatives in the financial
statements. However, also the positive changes in market values of foreign exchange derivatives are recognized in the
income statement and the balance sheet in cases where corresponding negative changes in market values exists. Foreign
exchange derivatives are marked-to-market at the rate of exchange on the balance sheet date and recorded in the income
statement as an adjustment to financial items or sales and purchases only to the extent they relate to balance sheet items
being hedged. Interest derivatives used for hedging the company’s loans are stated at historical cost. Interest derivatives
used for hedging subsidiaries’ external loans are stated at lower of historical cost or market value. Interest income or
expenses deriving from such instruments are accrued over the contract period.
Intangible assets
Intangible assets are amortized on a systematic basis over their estimated useful life. The period of amortization does not
exceed 20 years.
Tangible assets
Items of tangible assets are stated at historical cost and depreciated using the straight-line method over their estimated
useful lives. The period of depreciation does not exceed 12 years. Leases of tangible assets are classified as operating
leases.
Investments
Investments classified as long-term assets are carried at cost, less amounts written off to recognize permanent declines in
the value of the investment. On disposal of an investment, the difference between the net disposal proceeds and the
carrying amount is recognized as income or expense.
Investments in subsidiaries are carried at cost in the balance sheet of the company.
Income taxes
The income statement includes income taxes of the Company based on taxable profit for the financial period according to
local tax regulations as well as adjustments to prior year taxes.
Appropriations
Gains and losses from appropriations include items which fall outside the ordinary activities of the company, such as group
contribution or divestment related items.
Directors’ Report and Financial Statements 2025 | 144
1. NET INCOME
EUR million
2025
2024
Royalty income
61.3
67.9
Group cost income
145.4
130.5
Other
22.8
25.2
Total
229.5
223.6
2. OTHER OPERATING INCOME
EUR million
2025
2024
Contractual compensations
1
43.6
-
Other
2.5
4.5
Total
46.0
4.5
1
Contractual compensations related to a restructuring in the Foodservice Packaging segment, consolidating production.
3. MATERIALS AND SERVICES
EUR million
2025
2024
Purchases from group companies
68.3
66.1
Purchases from other companies
55.4
47.7
Total
123.7
113.8
4. PERSONNEL EXPENSES
EUR million
2025
2024
Wages and salaries
26.1
25.8
Pension costs
4.2
3.5
Other personnel costs
3.3
5.7
Total
33.6
35.0
The above amounts are on accrual basis. Remuneration paid by the parent company to the members of the Board of
Directors as well as the CEO of Huhtamäki Oyj (10 people) amounted to EUR 5.6 million (EUR 5.2 million).
Average number of personnel
2025
2024
Huhtamäki Oyj
191
175
5. DEPRECIATION, AMORTIZATION AND IMPAIRMENT
EUR million
2025
2024
Depreciation and amortization by asset type:
Machinery and equipment
0.1
0.1
Intangible rights
0.2
0.1
Development expenditure
4.2
2.5
Impairment
1
13.0
-
Other capitalized expenditure
0.8
0.7
Total
18.3
3.4
1
During Q2 2025 Huhtamaki made an impairment related to a restructuring in the Foodservice Packaging segment, consolidating production.
6. OTHER OPERATING EXPENSES
EUR million
2025
2024
Costs related to restructuring in the Foodservice Packaging segment
72.9
-
Other
5.8
7.8
Total
78.7
7.8
Directors’ Report and Financial Statements 2025 | 145
Auditor’s fees and services
EUR million
2025
2024
Audit fees
0.4
0.5
Other statutory services
0.3
0.4
Total
0.7
0.9
For auditor's other services see Note 2.5. Other operating expenses in the consolidated financial statements.
7. FINANCIAL INCOME AND EXPENSE
EUR million
2025
2024
Dividend income
143.5
750.8
Interest and other financial income
Intercompany interest income
33.2
42.0
Other interest income
6.5
5.1
Total interest income
39.7
47.1
Intercompany other financial income
0.4
-
Other financial income
205.4
164.9
Total interest and other financial income
245.5
212.0
Interest and other financial expense
Intercompany interest expense
-17.3
-20.3
Other interest expense
-57.7
-62.4
Total interest expense
-75.1
-82.7
Other financial expense
-207.6
-165.7
Total interest and other financial expense
-282.7
-248.4
Net financial items
106.3
714.4
8. TAXES
EUR million
2025
2024
Ordinary taxes
1.0
7.8
Total
1.0
7.8
Deferred taxes are not included in income statement or balance sheet. Unrecognized deferred tax asset from timing
differences is EUR 2.3 million (2024 tax liability EUR 2.3 million).
9. INTANGIBLE ASSETS
EUR million
Intangible rights
Development
expenditure
Other
capitalized
expenditure
Construction in
progress and
advance
payments
2025 Total
2024 Total
Acquisition cost on January 1
1.5
17.4
10.5
15.3
44.7
76.1
Additions
-
-
0.2
2.3
2.5
8.7
Disposals
-
-
-
-
-
-40.0
Intra-balance sheet transfer
0.5
16.4
0.2
-17.2
-0.2
-0.1
Acquisition cost on December 31
2.1
33.8
10.8
0.4
47.0
44.7
Accumulated amortization on January 1
0.8
6.4
8.6
-
15.8
52.5
Accumulated amortization on disposals and transfers
-
-
-
-
-
-40.0
Amortization during the financial year
0.2
4.2
0.8
-
5.2
3.3
Impairments during the financial year
1
-
13.0
-
-
13.0
-
Accumulated amortization on December 31
0.9
23.6
9.4
-
34.0
15.8
Book value on December 31, 2025
1.2
10.1
1.4
0.4
13.1
Book value on December 31, 2024
0.8
11.0
1.8
15.3
28.9
1
During Q2 2025 Huhtamaki made an impairment related to a restructuring in the Foodservice Packaging segment, consolidating production.
Directors’ Report and Financial Statements 2025 | 146
10. TANGIBLE ASSETS
EUR million
Machinery and
equipment
Other tangible assets
2025 Total
2024 Total
Acquisition cost on January 1
0.9
0.1
1.0
1.9
Additions
0.1
-
0.1
-
Disposals
-
-
-
-0.9
Intra-balance sheet transfer
0.2
-
0.2
0.1
Acquisition cost on December 31
1.2
0.1
1.3
1.0
Accumulated depreciation on January 1
0.8
-
0.8
1.7
Accumulated depreciation on disposals and transfers
-
-
-
-0.9
Depreciation during the financial year
0.1
-
0.1
0.1
Accumulated depreciation on December 31
0.9
-
0.9
0.8
Book value on December 31, 2025
0.3
0.1
0.4
Book value on December 31, 2024
0.1
0.1
0.2
11. INVESTMENTS
EUR million
Investment in
subsidiaries
Other shares and
holdings
Investments
Book value on January 1, 2025
3,164.3
1.6
3,165.9
Additions
0.0
1.7
1.7
Disposals
-
-0.7
-0.7
Book value on December 31, 2025
3,164.3
2.6
3,166.9
EUR million
Investment in
subsidiaries
Other shares and
holdings
Investments
Book value on January 1, 2024
2,417.3
1.1
2,418.3
Additions
747.0
0.8
747.8
Disposals
-
-0.2
-0.2
Book value on December 31, 2024
3,164.3
1.6
3,165.9
Subsidiaries
Country
Parent company holding %
Huhtamaki Finance B.V.
The Netherlands
75%
Huhtamaki Holding Oy
Finland
100%
Huhtamäki Securities Oy
Finland
100%
Huhtamaki Hungary KFT
Hungary
100%
Huhtamaki Foodservice Finland Oy
Finland
100%
Huhtamaki Germany GmbH
Germany
25%
Arabian Paper Products company
Saudi Arabia
50%
Huhtamaki International B.V.
The Netherlands
100%
Directors’ Report and Financial Statements 2025 | 147
12. RECEIVABLES
EUR million
2025
2024
Current
Account receivables from subsidiaries
187.9
204.4
Account receivables
14.8
-
Loan receivables from subsidiaries
-0.0
199.5
Accrued income
20.2
31.8
Accrued corporate income
7.4
21.5
Other receivables
2.2
0.9
Other receivables from subsidiaries
1.4
-
Total
233.8
458.0
Non-current
Intercompany loan receivables
492.8
324.1
Total
492.8
324.1
Total
726.6
782.2
13. ACCRUED INCOME
EUR million
2025
2024
Accrued interest and other financial items
4.3
3.9
Currency derivative assets
5.9
14.9
Accrued corporate income and prepaid expense
7.4
21.5
Other
10.1
12.9
Total accrued income
27.6
53.3
14. CHANGES IN EQUITY
EUR million
2025
2024
Restricted equity
Share capital January 1
366.4
366.4
Share capital December 31
366.4
366.4
Premium fund January 1
115.0
115.0
Premium fund December 31
115.0
115.0
Restricted equity total
481.4
481.4
Non-restricted equity
Retained earnings January 1
1,521.6
857.1
Dividends paid
-115.5
-110.0
Asset transfer tax for treasury shares
-
-0.1
Profit for the period
126.4
774.6
Retained earnings December 31
1,532.5
1,521.6
Non-restricted equity total
1,532.5
1,521.6
Development expenditure
-10.1
-25.4
Distributable equity
1,522.5
1,496.2
Total equity
2,014.0
2,003.0
For details on share capital see Note 5.4. Shareholder's equity in the consolidated financial statements.
Directors’ Report and Financial Statements 2025 | 148
15. LOANS
EUR million
2025
2024
Non-current
Loans from financial institutions
1,148.4
1,175.6
Non-current loans from financial institutions total
1,148.4
1,175.6
Current
Current portion of long-term loans from financial institutions
140.5
85.5
Loans from financial institutions and other current loans
16.9
70.9
Current loans from financial institutions total
157.4
156.4
Loans from subsidiaries
528.3
564.0
Other loans total
528.3
564.0
Changes in non-current loans
Loans from financial institutions
January 1
1,175.6
1,257.2
Additions
1,010.5
605.0
Decreases
-1,032.7
-689.5
FX movement
-5.0
2.9
Total
1,148.4
1,175.6
Repayments
Loans from
financial
institutions
2026
157.3
2027
404.7
2028
299.1
2029
-
2030–
444.7
16. OTHER NON-CURRENT LIABILITIES
EUR million
2025
2024
Employee benefits
-
0.2
Total
-
0.2
17. TRADE PAYABLES AND OTHER CURRENT LIABILITIES
EUR million
2025
2024
Trade payables
13.1
11.2
Intercompany trade payables
7.9
13.9
Trade payables
21.0
25.1
Other current liabilities
2.9
5.4
Other current liabilities to subsidiaries
10.7
3.0
Other current liabilities
13.6
8.4
18. ACCRUED EXPENSES
EUR million
2025
2024
Accrued interest and other financial expense
14.8
16.1
Currency derivative liabilities
5.6
13.9
Accrued expense to subsidiaries
10.7
7.7
Salaries and social security
8.7
9.4
Miscellaneous accrued expense
0.3
0.1
Total
40.1
47.2
Directors’ Report and Financial Statements 2025 | 149
19. DERIVATIVES
Fair values of derivatives, EUR million
2025
2024
Currency derivatives
with external parties
0.3
1.0
with subsidiaries
-4.1
11.5
Interest rate swaps
2.9
5.9
Total
-1.0
18.4
Nominal values of principles, EUR million
2025
2024
Currency derivatives
with external parties
1,136.1
1,168.3
with subsidiaries
329.0
444.6
Interest rate swaps
346.8
271.8
Total
1,811.9
1,884.7
The nominal value of external currency derivatives is 1,136.1 MEUR and the nominal value of internal currency derivatives
allocated to them is 329.0 MEUR. For the rest of the external currency derivatives hedge accounting is applied.
See Note 5.7. Management of financial risks in the consolidated financial statements for more information on the Group’s
financial risk management.
20. COMMITMENTS AND CONTINGENCIES
EUR millio
n
2025
2024
Operating lease payments
Under one year
1.3
1.4
Later than one year
0.8
0.8
Total
2.1
2.1
Guarantee obligations
For subsidiaries
171.6
206.2
Directors’ Report and Financial Statements 2025 | 150
Signatures of the Board of Directors’ Report and Financial Statements
Confirmations of the Board of Directors
We confirm that
-
the financial statements prepared in accordance with the applicable laws and regulations governing the preparation of
financial statements give a true and fair view of the assets, liabilities, financial position and profit or loss of the company
and the undertakings included in the consolidation taken as a whole;
-
the Directors’ Report includes a fair review of the development and performance of the business and the position of
the company and the undertakings included in the consolidation taken as a whole, together with a description of the
principal risks and uncertainties that they face; and
-
the Sustainability Report included in the Directors’ Report is prepared in accordance with sustainability reporting
standards referred to in Chapter 7 of the Accounting Act and with the Article 8 of Taxonomy Regulation (EU)
2020/852.
Signatures of the Board of Directors’ Report and Financial Statements
Espoo, February 12, 2026
Pekka Vauramo
Kerttu Tuomas
Mercedes Alonso
Doug Baillie
Robert K. Beckler
Essimari Kairisto
Anja Korhonen
Pauline Lindwall
Johann Christoph Michalski
Ralf K. Wunderlich
President and CEO
Directors’ Report and Financial Statements 2025 | 151
This document is an English translation of the Finnish auditor’s report. Only the Finnish version of the report is legally binding.
Auditor’s Report
To the Annual General Meeting of Huhtamäki Oyj
Report on the Audit of the Financial Statements
Opinion
We have audited the financial statements of Huhtamäki Oyj (business identity code 0140879-6) for the year ended 31
December, 2025. The financial statements comprise the consolidated balance sheet, income statement, statement of
comprehensive income, statement of changes in equity, statement of cash flows and notes, including material accounting
policy information, as well as the parent company’s balance sheet, income statement, statement of cash flows and notes.
In our opinion
—
the consolidated financial statements give a true and fair view of the group’s financial position, financial
performance and cash flows in accordance with IFRS Accounting Standards as adopted by the EU
—
the financial statements give a true and fair view of the parent company’s financial performance and financial
position in accordance with the laws and regulations governing the preparation of financial statements in Finland
and comply with statutory requirements.
Our opinion is consistent with the additional report submitted to the Audit Committee.
Basis for Opinion
We conducted our audit in accordance with good auditing practice in Finland. Our responsibilities under good auditing
practice are further described in the
Auditor’s Responsibilities for the Audit of the Financial Statements
section of our report.
We are independent of the parent company and of the group companies in accordance with the ethical requirements that
are applicable in Finland and are relevant to our audit, and we have fulfilled our other ethical responsibilities in accordance
with these requirements.
In our best knowledge and understanding, the non-audit services that we have provided to the parent company and group
companies are in compliance with laws and regulations applicable in Finland regarding these services, and we have not
provided any prohibited non-audit services referred to in Article 5(1) of regulation (EU) 537/2014. The non-audit services
that we have provided have been disclosed in note 2.5 to the consolidated financial statements.
We believe that the audit evidence we have obtained is sufficient and appropriate to provide a basis for our opinion.
Materiality
The scope of our audit was influenced by our application of materiality. The materiality is determined based on our
professional judgement and is used to determine the nature, timing and extent of our audit procedures and to evaluate the
effect of identified misstatements on the financial statements as a whole. The level of materiality we set is based on our
assessment of the magnitude of misstatements that, individually or in aggregate, could reasonably be expected to have
influence on the economic decisions of the users of the financial statements. We have also taken into account
misstatements and/or possible misstatements that in our opinion are material for qualitative reasons for the users of the
financial statements.
Key Audit Matters
Key audit matters are those matters that, in our professional judgment, were of most significance in our audit of the
financial statements of the current period. These matters were addressed in the context of our audit of the financial
statements as a whole, and in forming our opinion thereon, and we do not provide a separate opinion on these matters. The
significant risks of material misstatement referred to in the EU Regulation No 537/2014 point (c) of Article 10(2) are
included in the description of key audit matters below.
Directors’ Report and Financial Statements 2025 | 152
We have also addressed the risk of management override of internal controls. This includes consideration of whether there
was evidence of management bias that represented a risk of material misstatement due to fraud.
THE KEY AUDIT MATTER
HOW THE MATTER WAS ADDRESSED IN THE
A
UDIT
Valuation of goodwill and acquisition related intangible assets (refer to notes 3.1, 3.2 and 3.3 to the
consolidated financial statements)
At year end 2025 goodwill and intangibles totaled
EUR 1 032 million and represented 23 percent of
the consolidated total assets.
Goodwill is tested for impairment at least
annually. Preparation of cash flow projections
used as the basis for the impairment tests
requires
management
judgments
and
assumptions for profitability, long-term growth
rate and discount rate.
The acquisition related intangible assets have
finite useful lives and are amortized on a straight-
line basis over their useful lives.
Due to the uncertainty related to the projections
used in the impairment testing and the significant
carrying amounts involved, valuation of goodwill
and acquisition related intangible assets is
considered a key audit matter.
Our audit procedures included assessment of the
key assumptions used in the impairment tests by
reference to the budgets approved by the parent
company’s Board of Directors, data external to
the Group and our own views.
We assessed the mathematical accuracy of the
calculations and compared the assumptions to
externally available market and industry data.
In addition, we considered the appropriateness
of the disclosures presented.
Revenue recognition (refer to note 2.1 to the consolidated financial statements)
Huhtamäki Group revenues are generated from
sales
of
disposable
tableware
products,
foodservice packaging products as well as ice
cream containers and other consumer good
packaging products.
Consolidated net sales in 2025 were EUR 3 960
million.
Sales contracts with customers include several
different client specific delivery terms, which
determine when the ownership of the product is
transferred to the customer.
Revenue recognition is considered a key audit
matter due to the considerable number of sales
transactions and risk that revenue is recognized
in an incorrect period.
In our audit of revenues, we have tested key
controls
related
to
sales
and
performed
substantive
audit
procedures.
We
have
assessed
the
accounting
principles
and
practices for different revenue streams and
evaluated the appropriateness of the revenue
recognition principles in relation to the IFRS
standards.
—
We have tested revenue, discounts, and
pricing using data-analytics.
—
We have tested selected samples of sales
transactions comparing them to sales
invoices, contracts, delivery notes, external
confirmations and payments received.
We have verified that revenues have been
recognized in the appropriate financial year by
comparing sales transactions, invoices and
delivery terms to actual deliveries as well as by
inspecting credit invoices issued in early 2026.
Valuation of inventories (refer to note 4.1 to the consolidated financial statements)
Directors’ Report and Financial Statements 2025 | 153
Group’s value of inventories totaled EUR 600
million at year end 2025.
Inventory management, stocktaking routines and
costing of inventories are underlying key factors
in determining the value of inventories.
The
valuation
of
inventories
involves
management judgement and assessment in
relation to defining obsolete inventory and net
realizable values for finished goods and is
therefore considered a key audit matter.
We have evaluated the appropriateness of the
valuation principles in relation to the IFRS
standards and tested related key controls and
performed substantive audit procedures. We
have
attended
stock
takings
in
selected
inventory
locations
and
assessed
the
appropriateness of the stock taking processes.
—
We have compared the value of selected
finished goods inventory items to the sales
prices.
—
We have analyzed slow-moving inventory
items and items with exceptional values.
—
We have assessed the inventory valuation
principles,
and
the
adequacy
of
the
provisions recorded.
Income taxes (refer to note 2.6 to the consolidated financial statements)
Income taxes are material to the financial
statements as a whole.The Group’s presence is
global, and it operates in several countries with
different and changing tax rules.
Management uses judgment when assessing tax
matters and risks impacting on the recognition of
deferred tax assets, deferred tax liabilities and
tax provisions.
Due to the above, income taxes are considered
a key audit matter.
We have evaluated the appropriateness of the
accounting principles in relation to the IFRS
standards and the processes for recognizing
and assessing current and deferred tax.
Our audit procedures for assessing recognized
deferred taxes and tax provisions included
assessing the appropriateness of assumptions
and methodologies used by management and
correspondence with tax authorities.
We involved KPMG tax specialists both on group
level and in significant subsidiaries.
In addition, we considered the appropriateness
of the disclosures regarding income taxes.
We have not identified key audit matters relating to the parent company’s financial statements.
Responsibilities of the Board of Directors and the Managing Director for the Financial Statements
The Board of Directors and the Managing Director are responsible for the preparation of consolidated financial statements
that give a true and fair view in accordance with IFRS Accounting Standards as adopted by the EU, and of financial
statements that give a true and fair view in accordance with the laws and regulations governing the preparation of financial
statements in Finland and comply with statutory requirements. The Board of Directors and the Managing Director are also
responsible for such internal control as they determine is necessary to enable the preparation of financial statements that
are free from material misstatement, whether due to fraud or error.
In preparing the financial statements, the Board of Directors and the Managing Director are responsible for assessing the
parent company’s and the group’s ability to continue as a going concern, disclosing, as applicable, matters relating to going
concern and using the going concern basis of accounting. The financial statements are prepared using the going concern
basis of accounting unless there is an intention to liquidate the parent company or the group or cease operations, or there
is no realistic alternative but to do so.
Auditor’s Responsibilities for the Audit of the Financial Statements
Directors’ Report and Financial Statements 2025 | 154
Our objectives are to obtain reasonable assurance about whether the financial statements as a whole are free from
material misstatement, whether due to fraud or error, and to issue an auditor’s report that includes our opinion. Reasonable
assurance is a high level of assurance, but is not a guarantee that an audit conducted in accordance with good auditing
practice will always detect a material misstatement when it exists. Misstatements can arise from fraud or error and are
considered material if, individually or in the aggregate, they could reasonably be expected to influence the economic
decisions of users taken on the basis of the financial statements.
As part of an audit in accordance with good auditing practice, we exercise professional judgment and maintain professional
scepticism throughout the audit. We also:
—
Identify and assess the risks of material misstatement of the financial statements, whether due to fraud or error,
design and perform audit procedures responsive to those risks, and obtain audit evidence that is sufficient and
appropriate to provide a basis for our opinion. The risk of not detecting a material misstatement resulting from
fraud is higher than for one resulting from error, as fraud may involve collusion, forgery, intentional omissions,
misrepresentations, or the override of internal control.
—
Obtain an understanding of internal control relevant to the audit in order to design audit procedures that are
appropriate in the circumstances, but not for the purpose of expressing an opinion on the effectiveness of the
parent company’s or the group’s internal control.
—
Evaluate the appropriateness of accounting policies used and the reasonableness of accounting estimates and
related disclosures made by management.
—
Conclude on the appropriateness of the Board of Directors’ and the Managing Director’s use of the going
concern basis of accounting and based on the audit evidence obtained, whether a material uncertainty exists
related to events or conditions that may cast significant doubt on the parent company’s or the group’s ability to
continue as a going concern. If we conclude that a material uncertainty exists, we are required to draw attention
in our auditor’s report to the related disclosures in the financial statements or, if such disclosures are inadequate,
to modify our opinion. Our conclusions are based on the audit evidence obtained up to the date of our auditor’s
report. However, future events or conditions may cause the parent company or the group to cease to continue
as a going concern.
—
Evaluate the overall presentation, structure and content of the financial statements, including the disclosures,
and whether the financial statements represent the underlying transactions and events so that the financial
statements give a true and fair view.
—
Plan and perform the group audit to obtain sufficient appropriate audit evidence regarding the financial
information of the entities or business units within the group as a basis for forming an opinion on the group
financial statements. We are responsible for the direction, supervision and review of the audit work performed
for purposes of the group audit. We remain solely responsible for our audit opinion.
We communicate with those charged with governance regarding, among other matters, the planned scope and timing of
the audit and significant audit findings, including any significant deficiencies in internal control that we identify during our
audit.
We also provide those charged with governance with a statement that we have complied with relevant ethical
requirements regarding independence, and communicate with them all relationships and other matters that may
reasonably be thought to bear on our independence, and where applicable, related safeguards.
From the matters communicated with those charged with governance, we determine those matters that were of most
significance in the audit of the financial statements of the current period and are therefore the key audit matters. We
describe these matters in our auditor’s report unless law or regulation precludes public disclosure about the matter or
when, in extremely rare circumstances, we determine that a matter should not be communicated in our report because the
adverse consequences of doing so would reasonably be expected to outweigh the public interest benefits of such
communication.
Other Reporting Requirements
Information on our audit engagement
Directors’ Report and Financial Statements 2025 | 155
We were first appointed as auditors by the Annual General Meeting on April 29, 2020, and our appointment represents a
total period of uninterrupted engagement of 6 years.
Other Information
The Board of Directors and the Managing Director are responsible for the other information. The other information
comprises the report of the Board of Directors and the information included in the Annual Report, but does not include the
financial statements or our auditor’s report thereon. We have obtained the report of the Board of Directors prior to the
date of this auditor’s report, and the Annual Report is expected to be made available to us after that date.
Our opinion on
the financial statements does not cover the other information.
In connection with our audit of the financial statements, our responsibility is to read the other information identified above
and, in doing so, consider whether the other information is materially inconsistent with the financial statements or our
knowledge obtained in the audit, or otherwise appears to be materially misstated. With respect to the report of the Board
of Directors, our responsibility also includes considering whether the report of the Board of Directors has been prepared
in compliance with the applicable provisions, excluding the sustainability statement information on which there are
provisions in Chapter 7 of the Accounting Act and in the sustainability reporting standards.
In our opinion, the information in the report of the Board of Directors is consistent with the information in the financial
statements and the report of the Board of Directors has been prepared in compliance with the applicable provisions. Our
opinion does not cover the sustainability report information on which there are provisions in Chapter 7 of the Accounting
Act and in the sustainability reporting standards.
If, based on the work we have performed on the other information that we obtained prior to the date of this auditor’s report,
we conclude that there is a material misstatement of this other information, we are required to report that fact. We have
nothing to report in this regard.
Other statements based on law
Our responsibility is to, based on our audit, express an opinion on the registration and publication of the income tax report
required in Chapter 7 b of the Accounting Act.
The Board of Directors and the Managing Director are responsible for the registration and the publication of the income
tax report.
In our opinion, the company has not been obliged to register and publish an income tax report referred to in Chapter 7 b of
the Accounting Act for the financial year immediately preceding the financial year.
Helsinki, 12 February 2026
KPMG OY AB
Audit Firm
HENRIK HOLMBOM
Authorised Public Accountant, KHT
Directors’ Report and Financial Statements 2025 | 156
This document is an English translation of the Finnish Assurance Report on the Sustainability Statement. Only the Finnish version of the report is legally binding.
Assurance Report on the Sustainability Statement
To the Annual General Meeting of Huhtamäki Oyj
We have performed a limited assurance engagement on the group sustainability statement of Huhtamäki Oyj (business
identity code 0140879-6) that is referred to in Chapter 7 of the Accounting Act and that is included in the report of the
Board of Directors for the financial year 1.1.–31.12.2025.
Opinion
Based on the procedures we have performed and the evidence we have obtained, nothing has come to our attention that
causes us to believe that the group sustainability statement does not comply, in all material respects, with
1)
the requirements laid down in Chapter 7 of the Accounting Act and the sustainability reporting standards
(ESRS), and
2)
the requirements laid down in Article 8 of the Regulation (EU) 2020/852 of the European Parliament and of
the Council on the establishment of a framework to facilitate sustainable investment, and amending
Regulation (EU) 2019/2088 (EU Taxonomy).
Point 1 above also contains the process in which Huhtamäki Oyj has identified the information for reporting in accordance
with the sustainability reporting standards (double materiality assessment).
Our opinion does not cover the tagging of the group sustainability statement with digital XBRL sustainability tags in
accordance with Chapter 7, Section 22, Subsection 1(2), of the Accounting Act, because sustainability reporting companies
have not had the possibility to comply with that requirement in the absence of requirements for the tagging of sustainability
information in the ESEF regulation or other European Union legislation.
Basis for Opinion
We performed the assurance of the group sustainability statement as a limited assurance engagement in compliance with
good assurance practice in Finland and with the International Standard on Assurance Engagements (ISAE) 3000 (Revised)
Assurance Engagements Other than Audits or Reviews of Historical Financial Information
.
Our responsibilities under this standard are further described in the
Responsibilities of the Authorized Group Sustainability
Auditor
section of our report.
We believe that the evidence we have obtained is sufficient and appropriate to provide a basis for our opinion.
Authorized Group Sustainability Auditor's Independence and Quality Management
We are independent of the parent company and of the group companies in accordance with the ethical requirements that
are applicable in Finland and are relevant to our engagement, and we have fulfilled our other ethical responsibilities in
accordance with these requirements.
The authorized group sustainability auditor applies International Standard on Quality Management ISQM 1, which
requires the authorized sustainability audit firm to design, implement and operate a system of quality management
including policies or procedures regarding compliance with ethical requirements, professional standards and applicable
legal and regulatory requirements.
Responsibilities of the Board of Directors and the Managing Director
The Board of Directors and the Managing Director of Huhtamäki Oyj are responsible for:
—
the group sustainability statement and for its preparation and presentation in accordance with the provisions of
Chapter 7 of the Accounting Act, including the process that has been defined in the sustainability reporting
Directors’ Report and Financial Statements 2025 | 157
standards and in which the information for reporting in accordance with the sustainability reporting standards
has been identified,
—
the compliance of the group sustainability statement with the requirements laid down in Article 8 of the
Regulation (EU) 2020/852 of the European Parliament and of the Council on the establishment of a framework to
facilitate sustainable investment, and amending Regulation (EU) 2019/2088, and for
—
such internal control as the Board of Directors and the Managing Director determine is necessary to enable the
preparation of a group sustainability statement that is free from material misstatement, whether due to fraud or
error.
Inherent Limitations in the Preparation of a Sustainability Statement
Preparing a group sustainability statement requires a company to make materiality assessment to identify relevant matters
to report. This includes significant management judgement and choices. It is also characteristic to the sustainability
reporting that reporting of this kind of information includes estimates and assumptions as well as measurement and
estimation uncertainty.
When reporting forward-looking information in accordance with ESRS standards, a company's management is required to
make assumptions about possible future events, and to disclose the company's possible future actions in relation to those
events, as well as to prepare the forward-looking information based on these assumptions. Actual results are likely to differ
because forecasted events often do not occur as expected.
Responsibilities of the Authorized Group Sustainability Auditor
Our responsibility is to perform an assurance engagement to obtain limited assurance about whether the group
sustainability statement is free from material misstatement, whether due to fraud or error, and to issue a limited assurance
report that includes our opinion. Misstatements can arise from fraud or error and are considered material if, individually
or in the aggregate, they could reasonably be expected to influence the decisions of users taken on the basis of the group
sustainability statement.
Compliance with the International Standard on Assurance Engagements (ISAE) 3000 (Revised) requires that we exercise
professional judgment and maintain professional scepticism throughout the engagement. We also:
—
Identify and assess the risks of material misstatement of the group sustainability statement, whether due to fraud
or error, and obtain an understanding of internal control relevant to the engagement in order to design assurance
procedures that are appropriate in the circumstances, but not for the purpose of expressing an opinion on the
effectiveness of the parent company’s or the group’s internal control.
—
Design and perform assurance procedures responsive to those risks to obtain evidence that is sufficient and
appropriate to provide a basis for our opinion. The risk of not detecting a material misstatement resulting from
fraud is higher than for one resulting from error, as fraud may involve collusion, forgery, intentional omissions,
misrepresentations, or the override of internal control.
Description of the Procedures That Have Been Performed
The procedures performed in a limited assurance engagement vary in nature and timing from, and are less in extent than
for, a reasonable assurance engagement. The nature, timing and extent of assurance procedures selected depend on
professional judgment, including the assessment of risks of material misstatement, whether due to fraud or error.
Consequently, the level of assurance obtained in a limited assurance engagement is substantially lower than the assurance
that would have been obtained had a reasonable assurance engagement been performed.
Our procedures included for ex. the following:
—
We interviewed the company’s management and persons responsible for collecting and preparing the
information contained in the group sustainability statement.
Directors’ Report and Financial Statements 2025 | 158
—
Regarding the double materiality assessment process, we assessed the implementation of the process carried out
by the company and the information disclosed on the double materiality assessment process in relation to the
requirements of the ESRS standards.
—
Through interviews we gained understanding of the group’s key processes related to collecting and consolidating
the sustainability information.
—
We got acquainted with the group’s internal guidelines and operating principles relevant to the sustainability
information disclosed in the group sustainability statement
.
—
We got acquainted with the background documentation and documents prepared by the company, as applicable,
and assessed whether they support the information included in the group sustainability statement.
—
We conducted site visits to selected sites.
—
We assessed the information disclosed on material sustainability matters in the group sustainability statement in
relation to the requirements of the ESRS standards.
—
In relation to the EU taxonomy information, we gained understanding about the process by which the company
has defined taxonomy eligible and taxonomy aligned activities, and assessed the regulatory compliance of the
information provided.
Helsinki 12 February 2026
KPMG OY AB
Authorized Sustainability Audit Firm
HENRIK HOLMBOM
Authorized Sustainability Auditor, KRT
Directors’ Report and Financial Statements 2025 | 159
Independent Auditor's Report on the ESEF Consolidated
Financial Statements of Huhtamäki Oyj
(Translation of the Finnish original)
To the Board of Directors of Huhtamäki Oyj
We have performed a reasonable assurance engagement on the financial statements 5493007050SJVMXN6L29-2025-
12-31-1-fi.zip of Huhtamäki Oyj (Business ID 0140879-6) that have been prepared in accordance with the Commission's
regulatory technical standard for the financial year ended 31.12.2025.
Responsibilities of the Board of Directors and the Managing Director
The Board of Directors and the Managing Director are responsible for the preparation of the company's report of the
Board of Directors and financial statements (the ESEF financial statements) in such a way that they comply with the
requirements of the Commission's regulatory technical standard. This responsibility includes:
—
preparing the ESEF financial statements in XHTML format in accordance with Article 3 of the Commission's
regulatory technical standard
—
tagging the primary financial statements, notes and company's identification data in the consolidated financial
statements that are included in the ESEF financial statements with iXBRL tags in accordance with Article 4 of the
Commission's regulatory technical standard and
—
ensuring the consistency between the ESEF financial statements and the audited financial statements.
The Board of Directors and the Managing Director are also responsible for such internal control as they determine is
necessary to enable the preparation of ESEF financial statements in accordance with the requirements of the
Commission's regulatory technical standard.
Auditor’s independence and quality management
We are independent of the company in accordance with the ethical requirements that are applicable in Finland and are
relevant to the engagement we have performed, and we have fulfilled our other ethical responsibilities in accordance with
these requirements.
The auditor applies International Standard on Quality Management (ISQM) 1, which requires the firm to design, implement
and operate a system of quality management including policies or procedures regarding compliance with ethical
requirements, professional standards and applicable legal and regulatory requirements.
Auditor’s responsibilities
Our responsibility is to, in accordance with Chapter 7, Section 8 of the Securities Markets Act, provide assurance on the
financial statements that have been prepared in accordance with the Commission's regulatory technical standard. We
express an opinion on whether the consolidated financial statements that are included in the ESEF financial statements
have been tagged, in all material respects, in accordance with the requirements of Article 4 of the Commission's regulatory
technical standard.
Our responsibility is to indicate in our opinion to what extent the assurance has been provided. We conducted a reasonable
assurance engagement in accordance with International Standard on Assurance Engagements (ISAE) 3000.
Directors’ Report and Financial Statements 2025 | 160
The engagement includes procedures to obtain evidence on:
—
whether the primary financial statements in the consolidated financial statements that are included in the ESEF
financial statements have been tagged, in all material respects, with iXBRL tags in accordance with the
requirements of Article 4 of the Commission's regulatory technical standard and
—
whether the notes and company's identification data in the consolidated financial statements that are included
in the ESEF financial statements have been tagged, in all material respects, with iXBRL tags in accordance with the
requirements of Article 4 of the Commission's regulatory technical standard and
—
whether there is consistency between the ESEF financial statements and the audited financial statements.
The nature, timing and extent of the selected procedures depend on the auditor’s judgment. This includes an assessment
of the risk of a material deviation due to fraud or error from the requirements of the Commission's regulatory technical
standard.
We believe that the evidence we have obtained is sufficient and appropriate to provide a basis for our opinion.
Opinion
Our opinion pursuant to Chapter 7, Section 8 of the Securities Markets Act is that the primary financial statements, notes
and company's identification data in the consolidated financial statements that are included in the ESEF financial
statements of Huhtamäki Oyj 5493007050SJVMXN6L29-2025-12-31-1-fi.zip for the financial year ended 31.12.2025
have been tagged, in all material respects, in accordance with the requirements of the Commission's regulatory technical
standard.
Our opinion on the audit of the consolidated financial statements of Huhtamäki Oyj for the financial year ended
31.12.2025 has been expressed in our auditor's report dated 12.2.2026. With this report we do not express an opinion on
the audit of the consolidated financial statements nor express another assurance conclusion.
Helsinki 2 March 2026
KPMG OY AB
Audit Firm
Henrik Holmbom
Authorised Public Accountant, KHT
Directors’ Report and Financial Statements 2025 | 161
Definitions for performance measures
Performance measures according to IFRS
Earnings per share (EPS) attributable to
equity holders of the parent company =
Profit for the period – non-controlling interest
Average number of shares outstanding
Diluted earnings per share
attributable to equity holders of the
parent company (diluted EPS) =
Diluted profit for the period – non-controlling interest
Average fully diluted number of shares outstanding
Alternative performance measures
EBITDA =
EBIT + depreciation, amortization and impairment
Dividend yield =
100 x Dividend per share
Share price at December 31
Shareholders’ equity per share =
Total equity attributable to equity holders of the parent company
Number of shares outstanding at December 31
P/E ratio =
Share price at December 31
Earnings per share
Market capitalization =
Number of shares outstanding multiplied by the corresponding share price on the stock exchange at
December 31
Return on investment (ROI) =
100 x (Profit before taxes + interest expenses + net other financial expenses) (12m rolling.)
Statement of financial position total – interest-free liabilities (average)
Return on equity (ROE) =
100 x Profit for the period (12m rolling.)
Total equity (average)
Net debt to equity (gearing) =
Interest-bearing net debt
Total equity
Solidity =
100 x Total equity
Statement of financial position total – advances received
Current ratio =
Current assets
Current liabilities
Times interest earned =
Earnings before interest and taxes + depreciation, amortization and impairment
Net interest expense
Return on net assets (RONA) =
100 x Earnings before interest and taxes (12m roll.)
Net assets (12m roll.)
Operating cash flow =
Adjusted EBIT + depreciation and amortization (including impairment) – capital expenditure +
disposals +/– change in inventories, trade receivables and trade payables
Free cash flow =
Net cash flow from operating activities – capital expenditure + proceeds from selling tangible and
intangible assets
Comparable net sales growth =
Net sales excluding foreign currency changes, acquisitions and divestments
In addition to IFRS and alternative performance measures presented above, Huhtamaki may present adjusted performance measures, which are
derived from IFRS or alternative performance measures by adding or deducting items affecting comparability (IAC). The adjusted performance
measures are used in addition to, but not substituting, the performance measures reported in accordance with IFRS.
Directors’ Report and Financial Statements 2025 | 162
Key figures and financial development
Huhtamaki 2021–2025
EUR millio
n
2025
2024
2023
2022
2021
Net sales
3,960.2
4,126.3
4,168.9
4,479.0
3,574.9
Increase in net sales, %
-4.0
-1.0
-6.9
25.3
8.3
Net sales outside Finland
3,907.2
4,070.3
4,108.7
4,416.3
3,523.1
Earnings before interest, taxes, depreciation, amortization and impairment
613.3
595.6
621.2
614.9
469.6
Earnings before interest, taxes, depreciation, amortization and
impairment/net sales, %
15.5
14.4
14.9
13.7
13.1
Earnings before interest and taxes
320.5
372.3
380.9
405.3
296.0
Earnings before interest and taxes/net sales, %
8.1
9.0
9.1
9.0
8.3
Profit before taxes
261.0
300.5
312.0
352.1
263.0
Profit before taxes/net sales, %
6.6
7.3
7.5
7.9
7.4
Profit for the period
198.8
231.8
225.2
285.4
202.7
Total equity
1,930.2
2,124.1
1,924.9
1,922.2
1,597.2
Return on investment, %
9.5
10.8
10.9
11.4
10.6
Return on shareholders' equity, %
10.1
11.6
11.8
15.7
13.9
Solidity, %
42.4
43.5
41.3
39.9
35.4
Net debt to equity
0.61
0.57
0.67
0.77
0.95
Current ratio
1.59
1.52
1.60
1.50
1.22
Times interest earned
10.31
8.30
9.01
11.56
14.25
Capital expenditure
171.9
247.9
318.7
318.5
259.4
Capital expenditure/net sales, %
4.3
6.0
7.6
7.1
7.3
Research & development
44.0
34.7
36.0
30.6
25.7
Research & development/net sales, %
1.1
0.8
0.9
0.7
0.7
Number of shareholders (December 31)
69,638
51,783
53,834
50,150
43,744
Personnel (December 31)
17,390
17,794
17,910
18,927
19,564
Key exchange rates in EUR
2025
2024
2025
Statement
2024
Statement
Income
of financial
Income
of financial
statement
position
statement
position
Australian Dollar
AUD
1.7510
1.7543
1.6398
1.6756
British Pound
GBP
0.8565
0.8712
0.8467
0.8295
Indian Rupee
INR
98.3946
105.5800
90.5473
89.2685
Thai Baht
THB
37.1000
36.9350
38.1879
35.6400
US Dollar
USD
1.1288
1.1757
1.0824
1.0444
South African Rand
ZAR
20.1773
19.5571
19.8353
19.5691
The exchange rates used at the month end are the rates of the date prior to the last working day of the month, due to the change of
publication time of the ECB euro foreign exchange reference rates.
Directors’ Report and Financial Statements 2025 | 163
Share and shareholders
The Company has one class of shares. Each share carries one vote at the General Meeting of Shareholders. The Company
does not have in force any option rights plan or any other plan based on which the Company can issue special rights entitling
to subscription of the Company’s shares.
Article 11 of the Articles of Association of the Company contains provisions concerning the redemption obligation of
shareholders. Election of the members of the Board of Directors and the Chief Executive Officer is stipulated in Articles 4,
5 and 8 of the Articles of Association.
The Annual General Meeting of Shareholders on April 24, 2025 authorized the Board of Directors to decide: (i) on the
repurchase of the Company’s own shares and (ii) on the issuance of shares as well as the issuance of special rights entitling
to shares. The authorizations remain in force until the end of the next Annual General Meeting, however, no longer than
until June 30, 2026.
Certain agreements relating to the financing of the Company as well as supply agreements entered into with certain most
significant customers contain terms and conditions upon which the agreement may terminate if control in the Company
changes as a result of a public tender offer.
Per share data
2025
2024
2023
2022
2021
Earnings per share
EUR
1.83
2.14
1.97
2.65
1.91
Earnings per share (diluted)
EUR
1.83
2.13
1.97
2.64
1.91
Dividend (nominal)
EUR
1.14
1
1.10
1.05
1.00
0.94
Dividend/earnings per share
%
62.4
1
51.4
53.2
37.8
49.3
Dividend yield
%
3.8
1
3.2
2.9
3.1
2.4
Shareholders' equity per share
EUR
17.60
19.45
17.59
17.65
14.57
Average number of shares adjusted for share
issue
104,923,944
2
104,712,538 104,497,300
104,364,676
104,360,114
Number of shares adjusted for share issue at
year end
104,968,310
2
104,760,700 104,538,181
104,364,676
104,364,676
P/E ratio
16.3
16.0
18.6
12.1
20.4
Market capitalization at December 31
EUR million
3,121.8
2
3,580.7
3,839.7
3,339.7
4,058.7
Trading volume in NASDAQ OMX Helsinki Ltd
units
44,929,440
3
34,812,979
43,440,333
61,712,620
50,514,600
Trading volume in alternative trading venues
units
92,131,185
4
78,202,381 152,289,963 161,291,609
99,597,314
Trading volume, total
units
137,060,625
113,015,360 195,730,296 223,004,229 150,111,914
In relation to average number of shares
%
130.6
2
107.9
187.3
213.7
143.8
Development of share price
Lowest trading price
EUR
27.80
32.88
28.45
26.41
36.57
Highest trading price
EUR
38.68
40.16
37.20
39.94
45.93
Trading price on December 31
EUR
29.74
34.18
36.73
32.00
38.89
1
2025: Board's proposal
2
Issue-adjusted and excluding treasury shares.
3
Source: Nasdaq Helsinki Oy
4
Source: Refinitiv Eikon
See also Note 2.7. Earnings and dividend per share.
Directors’ Report and Financial Statements 2025 | 164
Distribution of ownership by number of shares on December 31, 2025
Number
Number of shares
shareholders
% of shareholders
Number of shares
% of shares
1–100
39,301
56.4%
1,586,119
1.5%
101–1,000
25,770
37.0%
8,717,306
8.1%
1,001–10,000
4,249
6.1%
10,473,673
9.7%
10,001–100,000
275
0.4%
7,153,845
6.6%
100,001–1,000,000
47
0.1%
14,718,191
13.7%
More than 1,000,000
8
0.0%
65,043,391
60.4%
Total
69,650
100.0%
107,692,525
99.9%
In the joint book-entry account
67,860
0.1%
Number of shares issued
107,760,385
100.0%
Distribution of ownership by sector on December 31, 2025
Sector
Number of shares
%
Nominee-registered shares
41,999,256
39.0%
Non-profit organizations
17,139,642
15.9%
Households
20,577,021
19.1%
Public-sector organizations
11,875,188
11.0%
Financial and insurance companies
8,588,129
8.0%
Private companies
7,253,008
6.7%
Foreigners
260,281
0.2%
In the joint book-entry account
67,860
0.1%
Number of shares issued
107,760,385
100.0%
Largest registered shareholders on December 31, 2025
1
Number of shares
Name
and votes
%
Finnish Cultural Foundation
11,319,263
10.5%
Varma Mutual Pension Insurance Company
4,110,567
3.8%
Ilmarinen Mutual Pension Insurance Company
3,864,000
3.6%
Elo Mutual Pension Insurance Company
1,666,000
1.6%
The State Pension Fund
1,100,000
1.0%
Evli Finnish Small Cap Fund
958,000
0.9%
Society of Swedish Literature in Finland
764,000
0.7%
Nordea Nordic Fund
648,345
0.6%
Holding Manutas Oy
595,000
0.6%
Total
25,025,175
23.2%
1
Excluding own shares acquired by Huhtamäki Oyj totaling 2,792,075 and representing 2.6% of the total number of shares.
Directors’ Report and Financial Statements 2025 | 165
SHAREHOLDER DISTRIBUTION BY SECTOR DECEMBER 31, 2025
The list above includes only direct registered shareholders and is based on information available from Euroclear
Finland Ltd., excluding 2,792,075 shares held by Huhtamäki Oyj that represent 2.59% of the total number of shares.
Nominee-registered holdings, which may be substantial, are not included. On December 31, 2025 nominee-registered
shareholders held in total 39% of Huhtamäki Oyj’s shares.
DEVELOPMENT OF HUHTAMAKI’S SHARE PRICE JANUARY 2, 2021–DECEMBER 31, 2025 (EUR)
MONTHLY TRADING VOLUME ON NASDAQ HELSINKI 2021–2025 (million shares)
Directors’ Report and Financial Statements 2025 | 166
MARKET VALUE AND EQUITY 2021–2025 (EUR million)
j