The FMCG goods maker has reported 8.97% increase in consolidated net profit to Rs 258.41 crore in Q3 FY24 from Rs 237.13 crore in Q3 FY23.
Net sales rose 1.38% to Rs 983.7 crore in the third quarter of FY24 from Rs 975.1 crore recorded in the same period last year.On the expenditure front, Emami's materials cost aggregated to Rs 311.2 crore (down 7.2% YoY), A&P spends added up to Rs 165.7 crore (up 8.1% YoY), staff costs amounted to Rs 102.1 crore (up 9.3% YoY) and admin and other expenses summed up to Rs 102.4 crore (up 10.8% YoY) in Q3 FY24.
EBIDTA improved by 7% to Rs 314.8 crore in Q3 FY24 from Rs 294.3 crore in Q3 FY23. EBITDA margin expanded by 170 basis points to 31.6% YoY.
Profit before tax in Q3 FY24 stood at Rs 260.65 crore, up by 11.88% from Rs 232.97 crore in Q3 FY23.
Emami said, its consolidated revenues stood at Rs 996 crore grew by 1% in Q3 with a flat growth in domestic business. However, non‐winter products grew by 5%. The International business delivered a constant currency growth of 11%, primarily attributed to robust performance in the MENAP region.
During the quarter, the company launched Zandu Agni Balm a stronger multipurpose balm to counter regional competition and gain share for overall balm portfolio. It has also launched 5 digital first launches during the quarter on its D2C portal Zanducare. In the International markets, the company launched Creme21 Pure Glycerin Oil and 7 Oils in one double conditioning shampoo range.
In light of reduced input costs, the company experienced a noteworthy enhancement in gross margins, reaching 68.8%, reflecting a substantial expansion of 290 basis points during the quarter.
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The company stated that it remains optimistic about future growth, supported by a favourable economic landscape, a positive trend in inflation, anticipated rural market recovery, government initiatives, and promising macroeconomic factors, all contributing to a confident outlook for sustained positive performance.
Meanwhile, the board of directors has declared second interim dividend of Rs 4 per share for FY24. The record date to receive the second interim dividend is Monday, 19 February 2024.
Further, the company has decided to close operations of the unit located at Village Dongari, Maharashtra, by end of July 2024, which was having insignificant portion of operations of the company.
Turnover of the Unit during the FY 2022-23 was Rs 35.15 crore, which is about 1% of the consolidated turnover was Rs 3,405.73 crore.
Harsha V Agarwal, vice chairman and managing director, Emami ,said, 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 deliver volume led profitable growth going forward aided by accelerated scale up of emerging channels, distribution initiatives, ongoing brand and strategic investments coupled with launch of innovative products.
Mohan Goenka, vice chairman and whole-time director, Emami, said, "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 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.
Emami is one of Indias leading FMCG companies engaged in manufacturing & marketing of personal care & healthcare products. With over 450 diverse products, Emamis portfolio includes trusted power brands like Navratna, BoroPlus, Fair & Handsome, Zandu Balm, Mentho Plus and Kesh King.
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