Huhtamaki India Limited , a subsidiary of global packaging solutions provider Huhtamäki Oyj, has announced its financial results for the second quarter, showcasing a mixed performance with improved profitability despite a slight decline in revenue.

Financial Highlights

• Net Sales: Rs. 5,919.00 million, down 4.7% year-over-year
• EBIT (before exceptional items): Rs. 362.00 million, up 37.4% year-over-year
• EBIT Margin: Improved to 6.1% from 4.2% in the previous year's Q2
• Net Profit: Rs. 249.40 million
• Earnings Per Share: Rs. 3.30

Half-Year Performance

For the first half of the year, Huhtamaki India reported:

• Net Sales: Rs. 11,850.00 million, a 2.4% decrease year-over-year
• EBIT (before exceptional items): Rs. 733.00 million, up 10.7% year-over-year
• EBIT Margin: 6.2%, compared to 5.4% in the previous year's H1

Management Commentary

Dhananjay Salunkhe, Managing Director of Huhtamaki India, attributed the company's performance to "slightly lower volumes compared to the corresponding quarter and half year of the previous year." However, he highlighted the significant improvement in EBIT performance, stating, "The EBIT performance has improved moderately to 6.1% of the sales during the quarter and half year compared to 4.2% during Q2 and 5.4% during H1 of the previous year, reflecting steady operational improvements and supported by favorable sales mix."

Salunkhe also emphasized the company's ongoing efforts to drive profitability through efficiency improvements and its commitment to Huhtamaki's Strategy 2030, aiming to be the first choice in sustainable packaging solutions.

Operational Overview

Huhtamaki India continues to focus on innovative products that protect on-the-go and on-the-shelf food and beverages, as well as personal care products. The company's operations are supported by 10 manufacturing facilities across India, employing around 2,500 people.

Investor Conference Call

The company has scheduled an earnings conference call on Friday, July 25, at 3:30 PM IST to discuss the Q2 results in detail. The call will be represented by Dhananjay Salunkhe, Managing Director, and Jagdish Agarwal, Executive Director and Chief Financial Officer.

Conclusion

While Huhtamaki India faced challenges in terms of revenue growth, the company's focus on operational efficiency and favorable sales mix has resulted in improved profitability. As the company continues to align with its parent company's global strategy, investors and stakeholders will be keenly watching how Huhtamaki India navigates the evolving market conditions and pursues its sustainability goals in the coming quarters.

Huhtamaki PPL has firmly denied recent media speculation regarding a potential $500 million acquisition. The company issued a statement addressing a news article that had claimed the packaging solutions provider was planning a significant acquisition.

Official Statement

In its official communication, Huhtamaki India categorically stated that the information presented in the news article was speculative in nature. The company emphasized its commitment to transparent communication with its stakeholders and the broader market.

Market Implications

This clarification from Huhtamaki India serves to dispel any rumors or unsubstantiated reports that may have influenced investor sentiment or market perceptions. It underscores the importance of relying on official company statements and verified information in the dynamic landscape of corporate finance and strategy.

Company's Stance

By promptly addressing and refuting the speculative report, Huhtamaki India demonstrates its proactive approach to managing market information and maintaining clear lines of communication with its investors and the public.

The company's swift response to the unverified acquisition report aligns with best practices in corporate governance and transparency, helping to maintain trust and credibility in the market.

Investors and market analysts are advised to rely on official announcements and verified sources for accurate information about Huhtamaki India's strategic plans and potential corporate actions.