Transcripts of the Earnings Call for the first quarter ended March 31, 2026
HUHTAMAKI · price
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Huhtamaki India reported stable sales (up 10 bps YoY) but significantly improved profitability in Q1 CY26. EBITDA grew 25% YoY while EBIT margins came in at 8%, helped by sales mix toward higher-value business and operational efficiency gains. The quarter included a one-time INR 88 million depreciation charge for prior years due to a calculation error, which suppressed EBIT growth to 4%. Excluding this charge, EBIT margins would have been 27.8%. Raw material costs rose sharply since late March due to geopolitical factors, but the company quickly passed through these increases to customers. A new CFO, Amit Gupta, also joined the company last month from Procter & Gamble Health. Management highlighted strong safety improvements (67% reduction in incidents) and progress on sustainability initiatives including a solar project at Khopoli.
The company is successfully executing its margin improvement strategy with consistent profitability gains over recent quarters. The selective approach to business participation and focus on higher-value customers is paying off, though volume growth remains modest.