Huhtamaki PPL , a leading flexible packaging manufacturer, reported mixed results for the second quarter, with revenue declining but margins showing significant improvement.

Revenue and Profit

The company's revenue for Q2 stood at ₹5.90 billion, down 4.7% year-on-year from ₹6.20 billion in the same quarter of the previous year. The decline was attributed to subdued demand conditions, unseasonal rains, and inflationary pressures. Despite the revenue dip, Huhtamaki India demonstrated strong operational performance:

Operational Highlights

Huhtamaki India's blueloop sustainable packaging solutions contributed 27-30% of the quarter's revenue, maintaining its share from the previous quarter. The company's World Class Operations (WCO) program continued to drive cost control measures and operational efficiencies, contributing to margin improvement.

Market Conditions

Management noted mixed market conditions, with urban demand remaining weak while rural demand provided some support. The company faced challenges from unseasonal rains, a prolonged summer, and early monsoon arrival, which impacted overall demand.

Financial Position

The company's working capital position was less favorable compared to the previous quarter due to increased inventory and receivables. Huhtamaki India maintains a focus on sustainable packaging solutions, operational excellence, and serving both domestic and export markets, with exports accounting for approximately one-third of total revenue.

Future Outlook

Dhananjay Salunkhe, Managing Director of Huhtamaki India, emphasized the company's commitment to innovation and creating value propositions that resonate with customers. The company is exploring various options to improve energy efficiency and sustainability, including the use of renewable power sources.

Huhtamaki India remains focused on high-value business and improving its product mix to navigate the challenges of a fragmented market and increasing commoditization in the flexible packaging industry. The company continues to leverage its global presence and expertise to serve customers across various segments, including the growing pet food packaging market.

As the regulatory landscape evolves, with the government focusing on sustainable solutions, Huhtamaki India is well-positioned to benefit from the increasing demand for recyclable materials in the coming years.

Conclusion

While facing revenue headwinds, Huhtamaki India's Q2 results demonstrate the company's ability to improve profitability through operational efficiencies and strategic focus on high-value segments. As market conditions remain challenging, the company's emphasis on innovation, sustainability, and operational excellence will be crucial for its future growth and performance.

Huhtamaki PPL has released its financial results for the second quarter ended June 30, 2025, showcasing a mixed performance with lower sales but improved profitability.

Financial Highlights

Performance Analysis

Huhtamaki India faced challenges in sales growth during Q2 2025, primarily due to lower volumes. However, the company managed to improve its profitability through operational efficiency and a favorable sales mix. The EBITDA margin saw a significant improvement, rising from 6.2% in Q2 2024 to 8.3% in Q2 2025.

Financial Position

The company maintains a strong financial position:

• Debt-free status
• Cash and cash equivalents: ₹1,557.00 million
• Liquid mutual fund investments: ₹1,250.00 million
• Unutilized fund-based limits with banks: ₹3,719.00 million

Half-Year Performance

For the first half of 2025 (H1 2025):

• Net sales decreased by 2.4% to ₹11,849.80 million
• EBITDA grew by 13% to ₹990.00 million

Operational Highlights

• Continued focus on efficiency improvement programs
• Achieved Zero Liquid Discharge status at multiple sites, including Khopoli, Rudrapur, and Silvassa
• Finance costs declined by 38.7% due to lower borrowing

Sustainability Initiatives

Huhtamaki India has made progress in various sustainability areas:

• Invested in ink cooling at major sites to reduce solvent usage
• Improvement in fire incident year-over-year
• Plans to update Science Based Targets initiative (SBTi) targets to be 1.5°C aligned by 2030 for scopes 1 & 2
• Renewable electricity project planned for the Khopoli site

Management Commentary

Dhananjay Salunkhe, Managing Director, and Jagdish Agarwal, Executive Director & CFO, presented the results in an earnings conference call on July 25, 2025. They highlighted the company's focus on operational efficiency and sustainability initiatives despite the challenging market environment.

Outlook

While Huhtamaki India continues to face challenges in sales growth, the company's improved profitability and strong financial position provide a solid foundation for future performance. The focus on sustainability and operational efficiency is expected to support the company's long-term growth strategy.

Investors and analysts can access the detailed earnings presentation on the company's website at https://www.flexibles.huhtamaki.in/ .