Huhtamaki India (509820) Q2 2024 earnings summary

Executive summary

• Net sales and volumes improved year-over-year and sequentially, but margins were pressured by adverse sales mix, supply chain disruptions, and geopolitical issues.

• The company is focused on operational efficiency, innovation, and sustainable product offerings to drive long-term profitable growth.

Financial highlights

• Q2 2024 net sales were INR 6,209.8 million, up 2.5% year-over-year; H1 2024 net sales were INR 12,146.3 million, down 3% year-over-year.

• Q2 2024 EBITDA was INR 382.8 million, down 9.1% year-over-year; Q2 EBITDA margin was 6.2%.

• Q2 2024 EBIT was INR 263.3 million, down 13.8% year-over-year; EBIT margin was 4.2%.

• Q2 2024 profit before tax (after exceptional items) was INR 508.2 million; Q2 consolidated profit after exceptional items was INR 385.4 million, driven by a land sale gain.

• Basic & diluted EPS after exceptional items for Q2 2024 was INR 5.10.

Outlook and guidance

• Management expects H2 to be better than H1, supported by anticipated rural recovery, festive season demand, and improved export conditions.

• Long-term strategy targets double-digit margins by 2030, with a focus on sustainable and innovative products.

• Strategy emphasizes competitiveness, operational excellence, and addressing margin pressures.