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Missing street expectations, FMCG major Emami Ltd on Wednesday reported a 3.62 per cent year-on-year rise in consolidated net profit to ₹146.75 crore for the fourth quarter last fiscal.
The Kolkata-based company’s net profit for the fourth quarter of FY23 stood at ₹141.62 crore. Revenue from operations for the quarter under review grew 6.61 per cent y-o-y to ₹891.24 crore from ₹835.95 crore, largely in line with analysts’ estimates.
Total expenses rose 6.93 per cent y-o-y at ₹680.26 crore for Q4FY24, according to a stock exchange filing of the company.
The company, in a release, said its domestic business grew by 8 per cent, while the volume growth was 6.4 per cent y-o-y during the fourth quarter. “Major brands like BoroPlus, pain management range, healthcare range, 7 Oils in One, The Man Company and Brillare performed strongly during the quarter. However, extended winters led Navratna and Dermicool to post low single-digit growth,” it said.
International business
The company’s international business witnessed a growth of 8 per cent during the period.
“Despite geopolitical crisis and currency depreciations in key geographies, international business grew by 9 per cent in constant currency and 8 per cent in INR terms, driven primarily by the MENA region,” Emami said.
The company’s international business expanded its portfolio with a range of shampoos and conditioners under the 7 Oils in One brand and a baby-care range under the Creme21 brand.
Ad spends
In Q4FY24, gross margins expanded by 270 basis points at 65.8 per cent. EBIDTA at ₹211 crore grew 6 per cent, despite strong investments in brands, which led to a 39 per cent surge in advertising and promotional spends, the FMCG maker said.
Harsha V Agarwal, Vice Chairman and Managing Director, said, “We are very happy to have delivered a growth of 8 per cent in our consolidated net sales, led by a domestic volume growth of 6.4 per cent in the fourth quarter, driven by most of our key brands. Despite facing geopolitical challenges, our international business continued to perform well and achieved a commendable 9 per cent growth in constant currency terms.”
Agarwal said the company expects its core brands to deliver a healthy all-round growth going forward, aided by recovery in rural areas, a strong summer, and the forecast good monsoon.
Mohan Goenka, Vice Chairman and Whole-Time Director, Emami Ltd, said it was encouraging to witness signs of market recovery with the rural segment gradually bouncing back. “Our contribution from organised channels has increased to 26 per cent of our domestic business, from 22 per cent in FY23,” Goenka added.
On Wednesday, the company’s scrip ended the day at ₹516 apiece on BSE, down 3.04 per cent from the previous close.
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