Nov 12, 2014
Essel Propack declares its Q2 results for FY15
Consolidated Performance Highlights:
India Standalone Performance Highlights:
- Non-oral care revenue for the quarter continued to grow strongly at 17.7% over previous year. Non-oral care share for the quarter improved by 80 bps over last year and by 140 bps for the half year.
- China operations showed a recovery; consequently EAP revenue grew sequentially by 24.2% and operating margin expanded by 520 bps sequentially to 15.4 pp.
- Europe revenue grew strongly by 26.9% and operating margin improved to 5.3 pp helped by Poland operation turning profitable.
- Finance cost for the quarter is 3.1% lower than the previous year.
Region wise Financial Highlights:AMESA
- India Standalone continued the strong momentum with revenue growing by 18.4% to Rs. 1986 Million, as against Rs. 1678 Million in the corresponding quarter. Net Profit for the quarter was flat, partly on account of exceptional items in the previous year.
- Non oral care sales share increased to 54.2% during the quarter against 53.0% in the previous year.
- Tubes/ laminates revenue continue to grow strongly by 20.4% helped by robust sales in the non-oral care category in India,
- New Contracts are under negotiation for supply of pharma and oral care tubes in the Middle East, Africa & India.
- During the quarter, new Tubing and Decoration Capacity was added in India and Egypt, to support non-oral care.
- Egypt continues to be high growth geography. Â
- Flexible packaging business revenue for the quarter grew by 17% and operating profit grew by 38% over last year. The business also recovered sequentially.Â However, it is still below plans.
- EAP revenue during quarter grew sequentially by 24.2% and y-o-y by 14.9%.Â With operating margin improving by 520 bps sequentially, operating profit expanded 88.7% over previous quarter.Â The new plant in East China to cater to non-oral care business is under commissioning during the quarter.Â Product trials are underway.
- Non oral care thrust is on plan, recording revenue growth of 60% during the first half, albeit on a low base.
- The China unit is actively seizing opportunity in premium oral care with couple of new customer wins. Efforts for growing non-oral care category are being reinforced.
- The China unit won 2 prestigious Awards from China Association of fragrance, flavours and Cosmetic Industry for Best Technological Innovation & Best Influence Material Supply.
- Americas Operating profit increased by 50.5% over the previous year helped by turnaround of Mexico Unit and a strong 23% sequential growth in Colombia.
- Thrust in non-oral care category in the US with new generation laminated tubes
- Capacity expansion in Colombia is expected to go on stream by December 2014.
- Europe revenue grew 26.9% over the previous year helped by full ramp up of the new oral care contract in Poland and new customer wins in non-oral care category.
- Poland Unit turnaround is now complete, with both Plastic and Laminated tubes posting robust sales.Â The unit is actively pursuing opportunity in non-oral care.
- Issues with cost efficiencies subdued Germany performance, but with the stabilization of the new capability and the capacity expansion planned for December 2014, the unit's performance is expected to pick up.
- Russia is lower in sales/ operating profit v/s last year, due to customer attrition, but has recovered sequentially. A volume recovery plan implemented since previous quarter has helped the unit to grow revenue 30% sequentially.Â However, weak Ruble has depressed the operating profit growth to 13%.
We are on track with our vision for sustained profitable growth. Our building blocks are in place to sustain the pace going forward with focus on quality of profits.