Emami's Q3 net down 27% due to late winter and brand amortisation

Its winter products normally make up 40% the firm's domestic sales during the quarter

Kolkata-based FMCG major Emami Ltd reported a decline of 27 per cent in its net profit at Rs 134 crore for the third quarter ended December 31 of the current fiscal year as against Rs 184 crore in the same quarter of 2014-15.

Amortization of its Kesh King intangibles by Rs 62 crore during October-December in 2015 and the late onset of the winter season impacted the company's bottomline as well as sales.

Its winter products portfolio normally contributes nearly 40 per cent of the domestic sales during the quarter.

Backed by good sales of its power brands consisting of Boro Plus, fairness creams, cooling oils and others helped the Emami Group's flagship company raise its net income by 14 per cent at Rs 789 crore in the period under review as compared to the earning of Rs 692 crore in the year-ago period.

 

"The integration of Kesh King has been completed successfully and the brand is performing well. We will continue to focus on innovation and launch new products and brand extensions to drive growth", the company's director, Harsha V Agarwal said in a statement.

The firm's cash profits also surged by over six per cent at Rs 206 crore in the third quarter as against Rs 194 crore in the same quarter of the last fiscal year.