Q4FY24 Results by EMAMI
The audited financial results of the company for the fourth quarter and financial year ended 31st March 2024 for Emamai Limited were declared and Harsha V Agarwal, Vice Chairman and Managing Director, Emami Limited, said about their results “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.”
Major brands like BoroPlus, Pain Management range, Healthcare range, 7 Oils in One, The Man Company and Brillare are said to have performed strongly during the quarter. However, extended winters led Navratna and Dermicool to post low single digit growth.
During the quarter, the Company launched Nature F1rst healthy radiance range under the Fair and Handsome brand. Enriched with Green Tea and Olives, the range consists of a cream and facewash. The Company also introduced four digital first launches under the Zanducare D2C portal.
The Company’s International Business further strengthened its portfolio by introducing a range of shampoo’s & conditioners under the 7 Oils in One brand and a Baby care range under the Creme21 brand. The NPD’s were launched in select key markets and will be gradually extended to other markets as well in coming quarters.
Overall the Company launched more than 50 products and variants in the Domestic and International market in FY24 with majority being Digital first products.
The Company posted revenues of ₹3,578 cr in FY24, with a growth of 5%, accompanied by an expansion of gross margins by 290 basis points at 67.6%. EBIDTA at ₹950 cr grew by 10%, with margins expanding to 26.5%, an increase of 120 basis points. Notably, profit after tax at ₹724 crores also saw an impressive growth of 13%.
Sustainability Goals
In an effort to reduce its carbon footprint, the company saw a reduction of absolute energy consumption by 12% over FY22. The Company further increased its renewable energy contribution to the total energy consumption to 19% in the current financial year and also reduced its water consumption by 17% over FY22. The Company was 100% compliant with EPR regulations with 10485 MT plastic waste recycled in FY24. As a responsible corporate citizen, the Company undertook various CSR initiatives touching the lives of 5.69 lac individuals during the year.
Pointed Mohan Goenka, Vice Chairman and Whole-Time Director, Emami Limited :
“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.”