Huhtamaki India (509820) Q4 2024 earnings summary

Executive summary

• Q4 2024 net sales increased 2.7% year-over-year but declined sequentially, with margins pressured by raw material inflation and adverse product mix.

• Full-year margins and profitability declined due to inflation, sales mix, and absence of prior year's exceptional gains.

• Management is focused on safety, sustainability, customer-centricity, and long-term growth initiatives.

• Efficiency programs and sustainability initiatives advanced, including energy intensity improvements and biodiversity risk assessments.

• Two IFCA STAR 2024 awards were won for innovative, sustainable label solutions.

Financial highlights

• Q4 2024 net sales: INR 6,012.3M, up 2.7% YoY; full-year sales: INR 24,505.3M, down 1.2% YoY.

• Q4 EBITDA: INR 320.1M (-48.2% YoY); Q4 EBIT: INR 181.9M (-64.1% YoY); full-year EBIT: INR 1,035M (-35.7% YoY).

• Q4 PBT before exceptionals: INR 152.3M (-65.7% YoY); Q4 net profit: INR 116.9M (-96.4% YoY); full-year net profit: INR 879.7M (-78.5% YoY).

• EPS for Q4: INR 1.55; full-year EPS: INR 11.65, down from INR 54.24 in FY 2023.

• Dividend of INR 2 per share recommended for 2024, down from INR 5 in 2023.

Outlook and guidance

• Management expects gradual improvement as demand recovers, with a focus on operational efficiency, sustainability, and long-term growth.

• No major CapEx planned for 2025; Blue Loop (sustainable) products expected to contribute more to margins by 2030.

• Challenging market conditions and sales mix expected to continue impacting margins.