EMAMI ANNOUNCES PROFIT LED GROWTH IN Q1FY24
Harsha V Agarwal, Vice Chairman and Managing Director, Emami Limited 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 digital eco-system, both e-commerce and D2C will play a key role in the organisation’s growth and we will continue to invest in strengthening our presence in an omni-channel presence to reach our consumers.”
Domestic business grew strongly by 16%, while the overall growth of Domestic Business in Q1FY24 stood at 7%. Highlights include:
Pain Management range, Healthcare range and BoroPlus grew in double digits
Dermicool posted high single digit growth.
Kesh King and Male grooming range being discretionary in nature posted muted growth during the quarter. The summer portfolio declined by 5% during the quarter due to the impact of unseasonal rains.
An Organics range of Shampoos under the Kesh King brand and various launches in the Medico range
Digital first launches on the Zanducare portal.
The Company also launched new variants of Navratna Cool Talc (Arctic Blossom), BoroPlus Body Lotion (Aloe Neem) and BoroPlus Soap (Neem) in Q1FY24.
Modern Trade and eCommerce continued to perform well growing by 45% and 47% respectively over previous year. Both Modern Trade and eCommerce contributed 9.7% each to Domestic business increasing their saliency by 250 basis points and 260 basis points respectively.
Growth of brands including Navratna, 7 Oils in One, Fair and Handsome and Creme 21 in the International markets. New launches like BoroPlus Virgin Coconut Oil and Ayucare range of herbal toothpastes were also introduced in the global markets during the quarter.
With easing of Raw Material cost pressure, the quarter witnessed an expansion of Gross margins by 240 basis points at 65.4% during the quarter. Despite investments in brand building and integration of subsidiaries which are in investment phase, EBIDTA at ₹ 190 crore grew by 10% with margins at 23.0% expanding by 60 basis points. Profit after Tax at ₹ 138 crore grew by 87% with PAT margins at 16.7% expanded by 720 basis points.
The Company also concluded Buyback of its shares amounting to ₹ 185.3 cr (excluding brokerage, taxes & levies). Following the Buyback, share capital reduced from 44.12 cr to 43.65 crore equity shares and promoter stake increased from 54.27% to 54.84%.