Huhtamaki India (509820) Q4 2023 earnings summary

Executive summary

• 2023 revenue from operations fell 14.5% YoY to ₹25,494.4 million, while EBITDA before exceptional items rose 20.6% to ₹2,101.8 million.

• Net profit reached ₹4,096.3 million, primarily reflecting ₹3,695.3 million of net exceptional income from asset disposals, partly offset by restructuring and VRS costs.

• Operational priorities included manufacturing network optimisation, cost productivity and sustainable packaging innovation; blueloop products accounted for 27% of sales in 2023.

Financial highlights

• Revenue from operations was ₹25,494.4 million versus ₹29,829.2 million in 2022; net sales were ₹24,813.2 million versus ₹29,165.0 million, down 15% YoY.

• EBITDA before exceptional items increased 20.6% to ₹2,101.8 million; EBIT before exceptional items rose 82.6% to ₹1,610 million from ₹882 million.

• Profit before exceptional items and tax was ₹1,305.1 million versus ₹559.3 million; reported PAT was ₹4,096.3 million versus ₹496.4 million.

• Basic and diluted EPS was ₹54.2 including exceptional items and ₹16.3 excluding exceptional items and related tax, versus ₹6.6 in 2022 on both bases.

Outlook and guidance

• FY2024 priorities: topline growth, blueloop adoption, safety, talent development and productivity-led growth through operational efficiencies and innovation; no numeric financial guidance stated.

• Strategy targets 100% of products recyclable, compostable or reusable by 2030; blueloop sales ambition is 100% by 2030, from 27% in 2023.

• Focus areas include strategic market positioning, process and product-line refinement, cost effectiveness, and navigating demand variation and a possible return of inflation.