Emami Results: Latest Quarterly Results & Analysis

Personal Products company Emami announced Q1FY25 results:

• Revenue from Operations at Rs 906 crore grew by 10%
• Domestic Business grew by 10% with a volume growth of 8.7%
• International Business grew by 11% growth in Constant currency
• Gross Margins at 67.7% improved by 230 bps
• EBIDTA at Rs 216 crore grew by 14% despite 21% higher investments in A&P
• EBIDTA margins improved by 90 basis points to 23.9%
• PBT at Rs 178 crore grew by 19%
• PAT at Rs 153 crore grew by 11%

Harsha V Agarwal, Vice Chairman and Managing Director, Emami Limited said: “I am very happy to announce a strong and profitable growth this quarter, highlighted by robust domestic volume growth of 8.7%, a befitting start to the new financial year as we celebrate our 50th Anniversary. Our summer portfolio performed exceptionally well, led by the stellar performances of our power brands, Navratna and Dermicool. Modern trade, eCommerce, and institutional channels continued to post strong growth in the Domestic business and our International Business also witnessed impressive growth of 11% in constant currency driven by the MENA and SAARC regions. As we move forward, we remain committed to delivering sustainable and profitable volume-led growth.”

Mohan Goenka, Vice Chairman and Whole-Time Director, Emami Limited said: "I am delighted to share that while our sales grew in double digits, our profits grew even faster with a 14% growth in EBITDA, despite 21% higher investments behind our brands. Our EBITDA margins also improved by 90 basis points. We continue to focus on our strategy to improve our distribution, invest aggressively in our key brands, and drive market share growth across our portfolio. With the forecast of a normal monsoon and the government's continued focus on macro-economic growth, we expect growth to accelerate in the coming months."

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Personal Products company Emami announced Q4FY24 results:

• Consolidated Net Sales at Rs 881 crore grew by 8%
• Revenue from Operations at Rs 891 crore grew by 7%
• Domestic Business grew by 8% (Volume growth of 6.4%)
• International Business grew by 8% (Constant currency growth of 9%)
• Gross Margins at 65.8% improved by 270 bps
• EBIDTA at Rs 211 crore grew by 6% despite 39% higher investments in A&P
• PAT at Rs 149 crore grew by 3%

Harsha V Agarwal, Vice Chairman and Managing Director, Emami Limited said: “We are very happy to have delivered a growth of 8% in our consolidated net sales, led by a domestic volume growth of 6.4% in the fourth quarter, driven by most of our key brands. Despite facing geo-political challenges, our international business continued to perform well and achieved a commendable 9% growth in constant currency terms. We expect our core brands to deliver a healthy all-round growth going forward, aided by recovery in rural, a strong summer and forecast of a good monsoon. Our strategic investments in innovative start-ups are expected to continue their robust growth and improve their profitability.”

Mohan Goenka, Vice Chairman and Whole-Time Director, Emami Limited said: “We are pleased to have closed the fourth quarter with a 6% growth in EBIDTA despite 39% higher investment in marketing promotions. It is encouraging to witness signs of market recovery with rural gradually bouncing back. Our contribution from organised channels has increased to 26% of our domestic business from 22% in FY23. Our enhanced investment in A&P to strengthen brand visibility and strategic distribution initiatives likes Project Khoj and other digital interventions are expected to provide impetus to our sales going forward. Our outlook is positive for the near and mid-term and we aim to deliver healthy growth supported by favourable operating environment.”

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Personal Products company Emami announced Q3FY24 & 9MFY24 results:

Financial Performance:
- Consolidated Revenues: Q3FY24 at Rs 996 crore with a 1% growth, and 9MFY24 at Rs 2,686.8 crore with a 5% growth.
- EBIDTA: Q3FY24 at Rs 315 crore, up by 7%, and 9MFY24 at Rs 738.5 crore, up by 11%.
- PAT (Profit After Tax): Q3FY24 at Rs 258 crore, increased by 9%, and 9MFY24 at Rs 577.4 crore, increasing by 16%.

Business Segments:
- Domestic Business: Reported flat growth for Q3; non-winter products grew by 5%.
- International Business: Registered an 8% growth in Rs and a constant currency growth of 11% on a Q3FY24 basis, dominant in the MENAP region.

Margins:
- Gross Margin: Improved by 290 basis points to 68.8% in Q3FY24.
- EBIDTA Margin: Increased by 170 basis points in Q3FY24.
- PAT Margin: Improved by 180 basis points in Q3FY24.

Dividends:
- Declared an interim dividend of 400%, which amounts to Rs 4/- per share.

Harsha V Agarwal, Vice Chairman and Managing Director: "I am happy that we could deliver another quarter of resilient performance along with substantially improved profitability with a 7% growth in EBIDTA and 9% growth in Profit after Tax, despite subdued demand in Q3. Disrupted winter, weak rural demand, and continued inflationary woes impacted the winter and discretionary offtakes. We remain committed to delivering volume-led profitable growth going forward aided by accelerated scale-up of emerging channels, distribution initiatives, ongoing brand and strategic investments coupled with the launch of innovative products."

Mohan Goenka, Vice Chairman and Whole-Time Director: "We showcased our adaptability in the face of changing market dynamics to post a resilient revenue growth despite a delayed winter. Our International business posted an impressive 11% constant currency growth led by the MENAP region. Our commitment to innovation remains unwavering, marked by the launch of various new innovative products both in domestic and international markets, underscoring our dedication to driving future growth and delivering value to our stakeholders."

Result PDF

Personal Products company Emami announced Q2FY24 results:

1. Financial Performance
- Consolidated revenues grew by 6% to reach Rs 865 crore.
- Emami posted a resilient performance in Q2FY24 with a 20% growth in EBIDTA.
- Domestic business grew by 4%, while international business grew by 12%.

2. Operational Highlights
- Emami achieved a commendable 2% volume growth in the domestic business, driven by channels catering to urban markets.
- International business delivered a constant currency growth of 16%, with robust performances in the SAARC and MENAP regions.
- Gross margins improved by 350 basis points, reaching 70.1%.
- Introduction of innovative digital-first products in the domestic business, including Glycerine bathing bars and organic onion hair masks.

3. Strategic Investments
- Emami acquired a 26% stake in Axiom Ayurveda Pvt. Ltd, which plays in the fruit-based nectars category under the brand 'AloFrut'.
- Axiom markets a refreshing and healthy fusion of aloe vera pulp and fruit blends.

4. Dividend Declaration
- The Board of Directors declared an interim dividend of 400% amounting to Rs 4 per share for FY24.
- The dividend reflects the company's strong performance and commitment to rewarding shareholders.

Harsha V Agarwal, Vice Chairman and Managing Director, Emami said, “In this dynamic and challenging environment, our results exemplify our dedication to growth and innovation, marked by a good increase in both volumes and revenues. Strong performance by both Modern Trade and e-commerce has led to a decent revenue growth of 6% and an impressive constant currency growth of 16% in our international business during this quarter. Our recent expansion into the juice category, marked by a strategic 26% investment in Axiom Ayurveda (AloFrut), aligns with our vision to diversify into high growth segment where we are currently not present. These strategic entries in diverse categories act as a launch pad for future growth of the Company.”

Mohan Goenka, Vice Chairman and Whole-Time Director, Emami said, "I'm delighted to announce our Company's positive performance in Q2FY24. Despite macroeconomic challenges, we achieved a 6% revenue growth. Notably, our gross margins expanded by 350 basis points, showcasing our operational excellence. EBIDTA soared by 20%, with margins expanding by 300 basis points, underscoring our dedication to value and quality. These achievements affirm our commitment to delivering value and quality to our consumers, partners and stakeholders. With the Government's support creating favorable conditions in rural markets, we're poised for a strong second half, amplifying our market presence.”

Result PDF

Personal products company Emami announced Q1FY24 results:

• Consolidated revenues at Rs 826 crore grew by 7%
  • Domestic business grew by 7%
  • International business grew by 8% (Constant currency growth of 11%)
• Gross margins at 65.4% improved by 240 bps
• EBIDTA at Rs 190 crore grew by 10%
  • EBIDTA margins improved by 60 bps
• Profit after tax at Rs 138 crore grew by 87%
  • PAT margins improved by 720 bps
• Completed buyback of shares amounting to Rs 185.3 crore (excl. brokerage, taxes & levies).

Harsha V Agarwal, Vice-Chairman and Managing Director, Emami said, “We are happy to report a 7% growth in domestic business despite challenging operating environment. While erratic summer & unseasonal rains impacted summer product offtakes, our non-summer portfolio grew strongly by 16%. International business also continued its growth trajectory with 11% constant currency growth. With inflation moderating further, we look to the future with increased optimism and confidence. With the development of the digital eco-system, both e-commerce and D2C will play a key role in the organization’s growth and we will continue to invest in strengthening our presence in an omnichannel presence to reach our consumers.”

Mohan Goenka, Vice Chairman and Whole-Time Director, Emami said, “The quarter witnessed strong performance by our Pain Management, BoroPlus, and Healthcare range which grew in double digits, with Dermicool posting a high single-digit growth. Backed by our resilient and competitive performance and aided by softening of input cost, we could deliver a healthy expansion of gross margin and EBIDTA and a robust profit growth of 87%. All our channels, especially Modern Trade eCommerce continued to perform well and contributed 9.7% each to domestic business, a growth of 45% and 47% respectively over the previous year. We endeavor to strengthen our core and continue to invest in growth drivers to deliver healthy profitability this year.”

Result PDF

Personal products firm Emami announced Q3FY23 results:

• Consolidated  Q3FY23:
  • Net sales at Rs 975 crore grew by 2%; 3-year CAGR of 7%.
    • Revenue from operations at Rs 983 crore grew by 1%; 3-year CAGR of 7%.
  • PAT at Rs 237 crore grew by 8%; 3-year CAGR of 16%.
  • EBIDTA at Rs 294 crore contracted by 14% due to inflationary input costs, the inclusion of new subsidiary costs, and strategic outlay on distribution expansion in rural, digital and modern trade channels; However, a 3-year CAGR of 4%.
  • The Board of Directors declared the 2nd Interim Dividend at 400% i.e. Rs 4 per equity share.

Mr Harsha V Agarwal, Vice Chairman and Managing Director, Emami Limited said: “The environment has been challenging due to high inflation, consumption slowdown, poor rural growth and a warmer winter. In the given circumstances, we have delivered satisfactory performance with a 7% revenue growth on a 3 year CAGR basis in Q3FY23. We continue to invest strongly behind our power brands, innovations, channel expansions and distribution optimizations. We believe that these sustained efforts will help us achieve sustainable and profitable growth”

Mr Mohan Goenka, Vice Chairman and Whole-Time Director, Emami Limited said: “Notwithstanding the muted consumption patterns, our focus on innovation remains strong. Our new launches and digital-first NPD’s have contributed 4% to our Domestic net sales during the quarter and new age channels viz. Modern trade, eCommerce and D2C continue to grow in excess of 20%. Our International business also reported 7% quarterly growth despite tough market challenges in Bangladesh, Nepal and Sri Lanka.”

Result PDF

FMCG Emami announced Q2FY23 results:

• Q2FY23:
  • Consolidated net sales at Rs 807 crore grew by 4%; 3-year CAGR of 8%
    • Growth of 8% excluding Pain Management, Healthcare range and Helios Lifestyle  
    • Correction in Pain Management and Healthcare range due to exceptionally high base in previous year
  • PBT at Rs 186 crore declined by 18%, however, it grew by 17% on a 3-year CAGR basis.
  • PAT at Rs 180 crore declined by 3%; however, it grew by 23% on a 3-year CAGR basis
  • Board of Directors declared an interim dividend at 400% i.e. Rs 4/- per equity share
  • Helios Lifestyle Pvt. Ltd (The Man Company) became a subsidiary of Emami Ltd after an increase of stake from 49.53% to 50.40%

Mr Harsha V Agarwal, Vice Chairman and Managing Director, Emami Limited said: “We are happy that despite challenging business & industry environment, the first half delivered net sales growth of 10%. With our strong focus on cost control, distribution expansion, aggressive marketing campaigns and driving penetration, we expect to deliver double-digit growth with healthy margins in the second half. Thus, on a full-year basis, we aspire to deliver double-digit growth with higher EBIDTA than the previous year for our core business.”

Mr Mohan Goenka, Vice Chairman and Whole-Time Director, Emami Limited said: “Consumer demand remained muted across markets with high inflation affecting consumption, especially in the rural markets. As anticipated, we witnessed a correction in the COVID contextual portfolio of pain management and healthcare products which grew significantly during the last two years. In the given context, the quarter delivered a low single-digit growth on a year-on-year basis, however, the 3-year CAGR has been impressive with a high single-digit growth of 8% if compared to pre-pandemic levels. Our international business also maintained its strong run, delivering a double-digit growth of 17%, notwithstanding various global and geo-political uncertainties.”

Result PDF

FMCG company Emami announced Q1FY23 results:

• Consolidated Revenues grew by 18% on a high base of 37% growth in PY;
• Domestic Business grew by 13%; Dermicool contributed 8% to Domestic Business
• International Business grew by 45%
• EBIDTA grew by 2% despite inflationary pressures
• Adjusted PAT posted flat growth on a high base of 45% growth in PY
• Independent Directors appointed on the Board - Mr. Anand Rathi, Mr. Anjani Agrawal, Mr. Anjan Chatterjee, Ms. Avani Davda and Mr. Rajiv Khaitan appointed as Independent Directors subject to Shareholders' approval

Mr. Harsha V Agarwal, Vice Chairman and Managing Director, Emami Limited said: "We are happy to post another quarter of strong resilient performance despite unprecedented inflationary headwinds impacting consumer offtakes as well as material costs. We remained focused on optimising costs while driving growth. Our international business posted a growth of 45% led by strong performances by MENA & SAARC regions. The quarter also witnessed strong performances of some of our leading brands like Navratna, Kesh King and Fair and Handsome posting high double digit growth and Dermicool making its mark. We look forward to a consistent and profitable growth in himes to come."

Result PDF

FMCG company Emami announced Q4FY22 results:

• Consolidated Revenues grew by 5% in Q4 on a high base of 37% growth in PY; Growth of 11% in FY22
  • India Business grew by 4% in Q4; up 12% in FY22
  • International Business grew by 8% in Q4; up 5% in FY22
• EBIDTA grew by 1% in Q4 on a high base of 65% growth in PY; up 8% in FY22
• PAT grew by 4.1x in Q4, up 85% in FY22
• Acquired “Dermicool”, one of the leading Prickly Heat & Cool Talc brands in March’22
• Q4FY22:
  • Gross margins at 62.4% contracted by just 30 bps
  • EBIDTA at Rs 164 cr grew by 1% on a high base of 65% growth in previous year.
  • Profits after Tax at Rs 356 cr grew by 4.1 times over previous year
• FY22:
  • Consolidated Revenues at Rs 3,192 crore grew by 11%
  • EBIDTA at Rs 952 crore grew by 8%
  • PAT at Rs 839 crore grew by 85%.
• The Board of Directors had declared two interim dividends of 800% i.e. Rs 8/- per share in FY22 aggregating to Rs 355.61 crore.

Mr Harsha V Agarwal, Vice Chairman and Managing Director, Emami Limited said: “Despite the challenging environment that the industry is going through since the last few years, we are happy to have posted a 3 year Profit before Tax CAGR of 20% in FY22, which is one of the highest in the industry since the COVID period. With an overall focus on digital business, we are now increasingly looking at D2C and eB2B segments and our investments in new-age startups are a step towards being present in the ever expanding FMCG sector. Dermicool, acquired in March’22 is also expected to strengthen our leadership position in the Prickly Heat and Cool Talc segment and add to the growth of business”

Mr Mohan Goenka, Vice Chairman and Whole-Time Director, Emami Limited said: “The Industry is going through a rough patch with inflation at its highest, impacting consumption across rural and urban sectors. We responded to the prevalent challenges with mix of cost control measures and judicious price increase and posted a resilient revenue growth of 6%. We are further strengthening our focus on analytics and technology in sales & distribution to drive the business ahead. We are hopeful of improvement in the sector soon.”

Result PDF