Huhtamaki India (509820) Q4 2020 earnings summary

Executive summary

• FY2020 revenue from operations was Rs. 24,627.0 mn, down 5.2% YoY; EBITDA fell 22% to Rs. 2,416.4 mn and PAT fell 43.5% to Rs. 959.9 mn, amid COVID-19 disruption and weaker product mix.

• Essential-supply-chain operations continued under COVID protocols; priorities included sustainable packaging, manufacturing productivity, automation and digitalisation.

Financial highlights

• Revenue from operations: Rs. 24,627.0 mn vs Rs. 25,989.8 mn in 2019; reported YoY decline 5.2%.

• EBITDA: Rs. 2,416.4 mn vs Rs. 3,096.4 mn; EBIT: Rs. 1,437.1 mn vs Rs. 2,227.1 mn.

• PAT: Rs. 959.9 mn vs Rs. 1,700.4 mn; EPS: Rs. 12.71 vs Rs. 22.52.

• Operating cash flow was Rs. 1,693.4 mn vs Rs. 2,845.2 mn; capex was Rs. 1,231.8 mn.

Outlook and guidance

• 2021 priorities: improve cost competitiveness, optimise the manufacturing footprint, reduce waste, drive end-to-end productivity and implement zero-based budgeting.

• Growth plans emphasised scaling core businesses, expanding in emerging markets, advancing sustainable packaging and food-delivery solutions, and investing in automation and expansion.

• Industry outlook cited recovery in FMCG as markets stabilise and continued growth in e-commerce, hygiene, healthcare and pharmaceutical packaging.