Welcome, everyone, and thank you for joining this announcement of our annual results. In 2025, our adjusted operating profit increased by 3%. Practically more relevant on a pro forma basis like for like, excluding the divested TANN Group by 15%, which is quite a strong performance in such a challenging market environment. Our Food & Premium Packaging division managed to keep the adjusted operating margin at a very good and very solid level. While Pharma & Healthcare Packaging delivered an encouraging 25% increase in adjusted operating profit. MM Board & Paper also showed a clear improvement compared to last year, although profitability is still not on a satisfactory level. The key driver behind this progress has been our group-wide Fit for Future program, which we have successfully accelerated throughout the year across all divisions.
Working with our dedicated MM teams and supported by external expertise, we pursue a comprehensive set of initiatives targeting growth, procurement optimization, operational efficiency, and structural improvements in sales and administration. Nothing is left undone. Given the strong performance and the good progress of Fit for Future, our confidence has strengthened that by 2027 we will achieve an earnings uplift of more than EUR 250 million compared with 2024, excluding TANN and market effects. This is well above our initial expectations of more than EUR 150 million at program launch, which I shared with you in the half year results. Already in 2025, Fit for Future contributed about EUR 70 million to our adjusted operating result with Board & Paper benefiting the most. Alongside these operational achievements, which are extremely important, we also have taken important strategic decisions.
As I mentioned in the half year results, we executed the sale of the TANN Group, which is a logical step in sharpening our focus on our packaging core business and has strengthened our balance sheet. In 2025, we also carried out share buybacks that provided to be an efficient use of capital and a clear expression of our confidence in MM's long-term development. Furthermore, 2025 included several one-off effects beyond the TANN divestiture, including the impairments of our Board & Paper division and site optimization measures in Pharma & Healthcare. All of that laying a strong foundation and the necessary consolidation for the future. With regards to our balance sheet, we reduced net debt and net debt to EBITDA, despite a very volatile environment and despite our continuation of a substantial modernization of our asset base in all our divisions.
Franz Hiesinger will give more details to this. Reflecting our strength and financial position and long-term confidence, we've revised our dividend policy. Instead of distributing around 1/3 of earnings over the long term, we now aim to distribute around half, so between 40% and 60% of annual net income, depending on other criteria like net debt, major planned investments, future prospects, and our commitment to continuity. Under this new policy, we will propose an increased dividend of EUR 2 per share to the forthcoming AGM, up from EUR 1.8 per share in the previous year, so an increase of 10%. Sustainability has remained a top priority in 2025. We have improved workplace safety again, reducing occupational accidents by a further 4%. Very important, we cut absolute CO2 emissions again strongly by 11% this year, and we increased energy efficiency across the group.
Our efforts are widely recognized, including a triple A leadership rating from CDP for climate, forests, and water, and a gold medal from EcoVadis. Further progress will come this year from projects such as the new pipe digester in Gratkorn, which will dramatically reduce energy consumption and CO2 emission. This will start up late this year. The installation of electric boilers at Kotkam ills to start up in spring next year. At this point, I would like to express my sincere thanks to our more than 13,000 employees worldwide. In a demanding environment, their dedication, creativity, and teamwork have been essential to our progress and success. A special recognition goes to everyone involved in managing the high additional demands arising from the implementation of our Fit for Future program.
Now I will hand over to our CFO, Franz Hiesinger, who will present the financial results for 2025. Afterwards, I will return with the outlook.
Thank you, Peter. In 2025, a year marked by persistent market challenges, we succeeded in strengthening our operational and financial performance. Our results reflect strict cost discipline, a sharper portfolio focus, and the growing impact of our Fit for Future program. Group sales amounted to EUR 3.9 billion, about 5% below previous year, mainly driven by the divestment of the TANN Group by mid-year. The adjusted operating profit increased about 3% to EUR 195 million, representing an operating margin of 5.0%, up from 4.7% the year before. Adjusted EBITDA came in at EUR 480 million, corresponding to a margin of about 10.8% compared to 10.3% last year.
On a pro forma basis, excluding the divested TANN business, adjusted operating profit increased by 15%, while Adjusted EBITDA rose by almost 8%. The reported operating profits includes one-off items of about EUR 26 million-plus. This includes a gain of EUR 125 million from the sale of TANN Group, offset by a non-cash impairment of assets of about EUR 70 million in the Board & Paper division, as well as EUR 29 million in costs related to Fit for Future restructuring. A major part of this is related to the footprint optimization of Pharma & Healthcare in France and Spain. Earnings before tax increased to EUR 146 million. Net profit amounted to EUR 77 million, influenced by significantly higher tax expense of EUR 65 million due to the reversal of loss carryforwards, mainly in Board & Paper of EUR 35 million in 2025.
While in the previous year, in contrast, we capitalized EUR 30 million of loss carryforwards. Across the divisions, earnings were mixed, but showed an encouraging overall direction, supported by our Fit for Future program. Food and Premium Packaging delivered EUR 1.54 billion in sales and maintained a strong adjusted operating margin of 10.2%, with 9.3% pro forma restated for TANN, confirming the resilience of its business model. Pharma and Healthcare Packaging generated sales of EUR 618 million and improved profitability to an adjusted margin of 6.0%, reflecting continued productivity gains. Board and Paper recorded stable sales of EUR 1.93 billion and achieved a slight positive adjusted operating result, an important improvement of more than EUR 20 million compared to the loss last year, driven by substantial cost savings and enhanced operational performance.
In 2025, we could strengthen our balance sheet substantially. The assets amounted to EUR 4.5 billion, down from EUR 4.9 billion in 2024, reflecting a streamlined group structure. Equity remained stable at EUR 2.1 billion, with a further improved equity ratio of 47%. A strong achievement in 2025 was the further reduction of net debt. Net debt declined to EUR 940 million compared to EUR 1.08 billion the year before. As a result, our net debt to equity ratio improved to 43%, and the net debt to EBITDA ratio declined to 2.2x, compared to 2.6x in 2024. These improvements underlines enhanced financial resilience and solid base of the group.
Cash of EUR 498 million at year-end and EUR 350 million in committed credit lines provide sufficient headroom for strategic flexibility. Operating cash flow was EUR 231 million. This is lower than the exceptional prior year level, which had benefited from a significant working capital release. CapEx of EUR 233 million remained close to last year and focused on enhancing long-term competitiveness across all divisions. Based on the group's strengthened financial structure, the management board will propose an increased dividend of EUR 2.0 per share, in line with our updated dividend policy, foreseeing a 40%-60% payout ratio of net profit. In summary, we enter 2026 with a stronger balance sheet and more focused portfolio and a promising Fit for Future program, providing a solid base to capture long-term value creation opportunities.
Thank you.
Thank you, Franz. Looking into the current year, the overall macroeconomic and industry environment will remain demanding, and European consumer sentiment is expected to stay subdued. Overcapacities will continue for the time being. However, our management team and I am strongly convinced that MM will emerge from the current transformation with strengthened competitiveness and improved profitabilities across all divisions. Why is that? Because of our market leadership, our value invested low cost asset base, and the expected substantial contributions from the Fit for Future program. For 2026, we plan disciplined strategic investments of around EUR 250 million. We will continue to invest in order to strengthen our competitiveness, to enhance our energy efficiency, and to expand the share of renewable energy.
We will have, again, maintenance shutdowns in the MM Board & Paper division, mainly affecting Gratkorn and Kotka mills, again, to be concentrated in the third and fourth quarter. Sustainability remains a central pillar of our value creation model, with key priorities on decarbonization, energy reduction, water efficiency, biodiversity, waste reduction, and the continuous enhancement of workplace safety. Concerning the developments in the Middle East, we are closely monitoring the situation. Our two local packaging sites have been little affected. As we speak, gas prices have significantly moved up, and depending on the length of time, this will affect our results. Now, summing up. Despite ongoing headwinds, we remain confident. Our markets continue to offer attractive long-term potential. As a strong team, we are committed to doing whatever it takes to advance the profitability of MM for the years to come. Thank you.