Cosmo Films reports 14% increase in income in Q2 FY19

During Q2FY19, net revenue increased by 14% (YoY) due to partial pass through of increase in raw material prices, increase in sales volume and better sales mix. Domestic commodity film margins declined further on YoY basis, the company could, however, maintain EBITDA (excluding one-time item) primarily from enhanced operational efficiencies, better sales mix and tax incentives on new investment.

Pankaj Poddar, CEO, Cosmo Films, said, “The company is navigating the tough times emanating from extremely poor commodity pricing in domestic market and remained focus on improving sales mix, focusing on internal efficiencies and increasing international sales. Though predictions cannot be made on domestic commodity margins, demand and supply is expected to balance out over next three-four quarters. The improvement in overseas subsidiaries operations is encouraging and we expect further growth in sales in the overseas subsidiaries.”

Established in 1981, Cosmo Films is a global leader in speciality films for packaging, lamination and labelling applications. With engineering of innovative products and sustainability solutions, Cosmo partners with world’s leading F&B brands, packaging and printing converters to enhance their consumer experience.