Huhtamaki India Targets Margin Enhancement Through Efficiency and Premium Packaging

2 min read     Updated on 15 Oct 2025, 10:25 PM
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Overview

Huhtamaki PPL, a subsidiary of Huhtamäki Oyj, reported improved profitability in Q3 despite a 4.70% decrease in net sales. The company's EBIT increased by 172.10% year-over-year, with EBIT margin rising to 8.60%. This improvement is attributed to a favorable sales mix and cost efficiency programs. Huhtamaki India plans to further enhance margins through operational efficiency and the introduction of new premium packaging solutions, aligning with its Huhtamaki Strategy 2030 for sustainable packaging.

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*this image is generated using AI for illustrative purposes only.

Huhtamaki PPL , a subsidiary of global packaging solutions provider Huhtamäki Oyj, has unveiled plans to boost its profit margins through a two-pronged approach: improving operational efficiency and introducing new premium packaging solutions. This strategic move comes as the company navigates a challenging market environment marked by lower sales volumes.

Financial Performance

In its recently released Q3 results, Huhtamaki India reported:

Metric Q3 2025 Q3 2024 YoY Change
Net Sales ₹6,049.00 ₹6,347.00 -4.70%
EBIT ₹521.00 ₹191.00 +172.10%
EBIT Margin 8.60% 3.00% +5.60 percentage points

Despite the decrease in sales, the company has managed to significantly improve its profitability, with EBIT more than doubling compared to the same period last year.

Strategic Initiatives

Dhananjay Salunkhe, Managing Director of Huhtamaki India, commented on the company's performance: "During Q3 and the 9-month period ended Sep 2025, the revenues are almost range bound compared to corresponding periods of the previous year. However, in-spite of the slight dip in sales, the margins have improved significantly for both Q3 as well as the 9-month period vs the corresponding periods of last year."

The company attributes this improvement to:

  1. Favorable sales mix
  2. Cost efficiency programs across the value chain

Huhtamaki India plans to build on this success by:

  • Enhancing margins through continued efficiency improvements
  • Introducing new premium packaging solutions
  • Focusing on long-term profitable growth initiatives

Sustainability Focus

As part of its Huhtamaki Strategy 2030, the company aims to position itself as the first choice in sustainable packaging solutions. This aligns with global trends towards environmentally friendly packaging options and may contribute to the company's premium product offerings.

Market Outlook

While Huhtamaki India faces challenges in terms of sales volume, its focus on operational efficiency and premium solutions suggests a strategic shift towards higher-value products. This approach may help the company navigate the current market environment and potentially capture more lucrative market segments.

The company's ability to improve profitability despite lower sales volumes indicates resilience and effective management of its cost structure. However, investors should monitor whether Huhtamaki India can sustain this margin improvement and successfully introduce premium packaging solutions to drive future growth.

As the packaging industry continues to evolve, with increasing emphasis on sustainability and innovation, Huhtamaki India's strategic initiatives position it to potentially capitalize on these trends. The coming quarters will be crucial in determining the effectiveness of the company's margin enhancement and product development strategies in driving long-term growth and profitability.

Historical Stock Returns for Huhtamaki PPL

1 Day5 Days1 Month6 Months1 Year5 Years
-1.23%-2.73%-0.46%+17.21%-41.96%-23.83%
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Huhtamaki India Reports Strong Q2 Profit Growth Despite Revenue Decline

2 min read     Updated on 15 Oct 2025, 05:14 PM
scanx
Reviewed by
Jubin VergheseScanX News Team
Overview

Huhtamaki India's Q2 results show a significant profit increase despite a slight revenue decline. Net profit rose by 214.53% to ₹368.00 million, while revenue decreased by 3.85% to ₹6,250.00 million. EBITDA improved to ₹555.00 million, with the EBITDA margin expanding to 8.88%. The company attributes this performance to a favorable sales mix and cost efficiency programs across the value chain.

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*this image is generated using AI for illustrative purposes only.

Huhtamaki PPL has announced its financial results for the second quarter, showcasing significant profit growth despite a slight decrease in revenue.

Financial Performance

For the second quarter, Huhtamaki India reported the following key financial metrics:

Particulars Q2 Q2 Previous Year YoY Change
Revenue ₹6,250.00 million ₹6,500.00 million -3.85%
Net Profit ₹368.00 million ₹117.00 million 214.53%
EBITDA ₹555.00 million ₹181.00 million 206.63%
EBITDA Margin 8.88% 2.77% 6.11 pp

Profit Growth and Margin Improvement

Despite the slight dip in revenue, Huhtamaki India has shown remarkable improvement in its profitability and margins. The net profit for Q2 stood at ₹368.00 million, a significant increase from ₹117.00 million in the same period last year, representing a growth of 214.53%.

The company's EBITDA improved substantially to ₹555.00 million compared to ₹181.00 million in the previous year, with the EBITDA margin expanding to 8.88% from 2.77% year-over-year. This improvement has been attributed to a combination of favorable sales mix and cost efficiency programs implemented across the value chain.

Revenue Performance

While the company experienced strong profit growth, revenue decreased to ₹6,250.00 million from ₹6,500.00 million year-over-year, representing a decline of 3.85%.

Operational Efficiency

The significant improvement in profitability and margins, despite the slight revenue decline, suggests that Huhtamaki India's focus on operational efficiency and cost management is yielding positive results. The company's ability to enhance its EBITDA margin substantially indicates strong operational performance in the current quarter.

As part of Huhtamaki's broader strategy, the company continues to focus on innovation and sustainability in the packaging industry. This alignment with global trends towards environmentally friendly packaging solutions may contribute to the company's performance in future quarters.

Historical Stock Returns for Huhtamaki PPL

1 Day5 Days1 Month6 Months1 Year5 Years
-1.23%-2.73%-0.46%+17.21%-41.96%-23.83%
Huhtamaki PPL
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