Emami Limited‘s Board reviewed its financial results for the quarter ending September 30, 2024. Despite India’s retail challenges, Emami’s revenue grew 3% to INR 891 crore, with domestic sales up 2.6%.
EBITDA at 7%, PAT to INR 220 Cr
Furthermore, the fmcg brand reported a strong quarter, with gross margins increasing by 0.6% to 70.7%. The company’s EBITDA rose 7% to INR 250 crore, while EBITDA margins expanded by 1.1% to 28.1%. Profit Before Tax grew 13% to INR 220 crore, with a 2.2% margin improvement. Additionally, Profit After Tax surged 19% to INR 213 crore, demonstrating Emami’s robust financial performance.
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According to India Retailing, Harsha V Agarwal, Vice Chairman and MD of Emami commented, “We are pleased to close the first half of the year with strong performance, achieving 6 percent revenue growth, 10 percent EBITDA growth, and a 16 percent profit increase despite macroeconomic challenges. For H2 FY25, we expect stronger offtakes driven by improved rural demand and stable seasons ahead.”
Emami grows 12% globally, 6% in Q2 FY25
Emami’s international sales grew 12% (excluding Bangladesh) and 6% overall for Q2FY25.
Despite global challenges, Emami’s international business saw strong growth, with sales up by double digits excluding Bangladesh. According to Agarwal, new products and strategic investments will drive double-digit revenue growth in the second half of the year.
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Notably, Emami’s key brands, like Navratna and Dermicool, as well as their healthcare and pain management products, experienced steady growth. In the second quarter of FY25, Emami introduced 11 new products to enhance their offerings. These new items include DermiCool Sweat Reliever Super Active Talc, Ice Cool Shower Gel, and various personal care products such as De-Tan and Deep Cleansing Face Wash, Style Lock Shampoo, Fresh Impact Body Wash, and two EDT perfumes under the ‘HE’ brand.
Adding to Emami’s performance, Mohan Goenka, Vice Chairman and Whole-Time Director, stated, “Organised channels like Modern Trade, e-Commerce, and Institutional sales now contribute 26.6 percent to our domestic business, a 190-basis point increase in the first half. We remain committed to achieving high single-digit revenue growth and double-digit EBITDA growth for FY25.”
Meanwhile, Emami’s healthcare segment expanded with new products on the Zanducare portal, including daily health supplements and hair growth serum. BoroPlus Soft cream was also relaunched with new packaging.
Moving forward, Emami plans to revamp its Fair and Handsome brand and prioritise Kesh King to solidify its market position. With a promising winter outlook, the company anticipates a strong showing from its winter product lineup.
