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/ .

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.