Uflex expands flexible packaging business to Russia, Nigeria and Hungary

Uflex Q1 financial results

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Uflex Limited, a flexible packaging company, declared its earnings for the quarter ended 30 June 2019 on 13 August 2019. The consolidated revenue grew by 3.6% to Rs 1,982 crore in Q1 and EBITDA (earnings before interest, tax, depreciation and amortization) rose by 8.7% to Rs 277.3 crore year over year. On standalone basis, the revenue increased by 2.23% to Rs 1,051 crore and EBITDA jumped by 11.7% to Rs 132.6 crore.

The consolidated net profit dropped by 3.6% year over year to Rs 90.7 crore for Q1 the FY 2019-20, due to higher tax provision. Talking about the earnings, Rajesh Bhatia, group chief financial officer at Uflex said, “This quarter while our total production volume was almost constant at 100814 metric tons year over year basis, packaging production volume was up by 4.8% year over year to 21018 metric tons.” He continued, “To optimally use our film line capacity, we are shifting one of our BOPET film manufacturing line from UAE to Russia, since the production from this line was already largely dedicated to markets in Russia and CIS countries. This will enable us to serve customers locally apart from substantial cost saving of freight, energy and import duties.”

Ashok Chaturvedi, chairman and managing director, Uflex said, “Uflex has
progressed exponentially in the last few years with its products, technological and
engineering capabilities, keeping in mind the evolving needs of the packaging industry, along with environmental needs. We have been striving hard and making all possible efforts to provide our customers with innovative and sustainable packaging solutions that are also economical. To ensure that we are future-ready and have a better outreach of sustainable solutions to our clients located globally, we are scaling up our operations internationally. Our ongoing investment in Hungary, Nigeria and Russia to set up manufacturing facilities for packaging films attests our commitment to deliver packaging excellence to each of our customers.”

He further commented, “As leaders in the industry, we are conscious of the challenge that noise around plastic poses. To address the issue of this rather solvable problem, Uflex is working on a range of revolutionary plastic films that will be bio-degradable as well recyclable by nature, thereby reducing plastic waste going into landfills and save our planet.”