UFlex announces Q4 results, clocks 8.7% increase in sales volume in flexible packaging

UFlex reported its audited consolidated net revenue for Q4 FY24 at Rs. 34,967-million, up by 4.5% QoQ and 3% YoY. The adjusted EBITDA for the quarter stood at Rs. 4,550-million, up by 6.9% QoQ and 6.3% YoY. Notably, the adjusted EBITDA margin stands at 13%, increasing by 30 BPS QoQ and 40 BPS YoY. The company also declared a dividend of 10%.

The overall sales volume grew by 10.5% YoY, including volume growth of 13.7% and 1.5% YoY in the films and packaging business respectively. 

Ashok Chaturvedi, chairman and managing director, UFlex, said “FY24 has been a year of consolidation and UFlex has made significant inroads in achieving raw material self-sufficiency by commissioning a PET chips plant at Panipat, India and PCR (post-consumer recyclate) plants in Mexico and Egypt. With the commissioning of a PET chips plant in Egypt in FY25, UFlex will achieve substantial PET chips raw material security."

“The year also witnessed the highest-ever production and sales volume in our aseptic packaging business. UFlex is looking at an increased capacity of 12 bi-lion packs (per annum) after the completion of capacity debottlenecking at our Sanand plant in FY25. Progressing toward net-zero emissions by 2035, we continue to invest in sustainable operations and a robust product portfolio — reaffirming our commitment to spearheading the industry's transition toward a sustainable future,” he added. 

Rajesh Bhatia, CFO, UFlex, said, “In Q4, we have witnessed an increase in sales volume despite a challenging environment and a 6.8% YoY adjusted EBITDA increase to Rs. 4,550-million. Our diversified product portfolio continues to pay dividends and packaging (including aseptic packaging and holography) continues to fuel the growth engine for UFlex. In FY24, we suffered a currency devaluation loss of Rs. 8,710-million in Nigeria/Egypt which led to a loss of Rs. 6,910-million”. 

UFlex commenced commercial production of poly-condensed polyester chips at its manufacturing facility in Panipat, Haryana on 31 March, 2024. The plant has an installed capacity of 1,68,000 metric tons per annum (MTPA). The Panipat plant will primarily manufacture poly-condensed polyester chips, an important raw material to produce BOPET packaging films, catering to in-house and external customer demand, fuelling the growth and sustainability of the packaging film industry in India.  

The company has entrenched sustainability into its core business strategy. Flex P. Films (Egypt) S.A.E. commissioned a post-consumer recycling (PCR) plant in Egypt on 2 January, 2024. Specialising in the recycling of post-consumer PET bottles, this plant utilises advanced mechanical recycling technology and boasts an impressive installed capacity of 18,000 MT per year. These recycled materials are used to produce PET film, contributing to a circular economy.