Q2 FY25 Earnings Report and Takeaways from Investor Presentation
Summary of key financial and operational highlights from EPL’s latest earnings report:
| Metric | Q2 FY24 | Q2 FY25 | % Change |
|---|---|---|---|
| Revenue from Operations | 10,016 million | 10,862 million | 8.4% |
| EBITDA | 1,810 million | 2,167 million | 19.7% |
| EBITDA Margin | 18.1% | 20.0% | 188 bps |
| PAT | 505 million | 870 million | 72.3% |
| Basic EPS | 1.58 Rs | 2.73 Rs | 72.8% |
| Net Debt / EBITDA | 0.88x | 0.76x | -13.6% |
| ROCE | 13.9% | 16.5% | 260 bps |
| “Personal Care & Beyond” % | 47% | 48% | 100 bps |
| Recyclable Volume % | 21% | 33% | 1200 bps |
Profitability
- EPL achieved nine consecutive quarters of EBITDA margin improvement.
- Q2 FY25 EBITDA margin reached 20%, driven by strategic price management, cost optimization, and automation investments.
- Profitability improvements in the Americas and Europe offset a decrease in AMESA.
Future Plans and Other Relevant Information
- Sustain Double-Digit Growth: EPL plans to achieve sustained double-digit growth by focusing on its “Personal Care & Beyond” category and scaling up its presence in Brazil.
- EBITDA Margin Expansion: The company aims to continue expanding EBITDA margins through various initiatives and reach a target of over 20%.
- Sustainability Leadership: EPL is committed to its sustainability initiatives, with a target of achieving EcoVadis Platinum status and partnering with customers on their sustainability journeys. The company has already achieved a Gold rating and is in the top 2% of companies globally. One-third of EPL’s portfolio consists of sustainable tubes, and the company is committed to increasing this proportion.
- New Product Categories: EPL is venturing into new categories, such as tubes for cat and dog lice treatment and dry hair gel.
- New Customers: EPL has added a new multinational customer in Brazil, its third in that market.
- Employee Recognition: EPL was certified as a “Great Place to Work” in six countries.
Well-positioned for continued growth and profitability. Strong market position, focus on innovation, and commitment to sustainability should drive continued success.
Disclaimer: Invested and Biased. Less than 5% of PF. No transactions in the last 30 days. Post purely for study purposes. Consult your advisor before any investment decisions.
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