FMCG major Emami on Tuesday reported a 16.4% year-on-year decline in consolidated net profit to Rs 137 crore for the June quarter (Q1FY27), due to a sharp rise in expenses amid elevated crude prices, inflationary pressures and disruptions caused by the West Asia crisis.
Consolidated revenue from operations rose about 15% year-on-year to Rs 1,039 crore in the said quarter. The company said the domestic business grew 20% during the quarter, while on a like-to-like basis, growth stood at 12% with volume growth of 8% after adjusting for the previous year’s Axiom Ayurveda and IncNut Digital numbers.
Total expenses during the quarter were up nearly 18% to Rs 813.03 crore against Rs 689.87 crore a year earlier, primarily on account of higher cost of materials, purchases of stock-in-trade and advertisement and sales promotion spends.
Gross margin contracted by 360 basis points to 65.8% due to higher crude-linked input costs and inflation across packaging materials and other key inputs. Earnings before interest tax depreciation and amortisation (Ebitda) rose nearly 6% year-on-year to Rs 226 crore, supported by cost optimisation and operational efficiencies, the company said. Ebitda margins slipped 190 basis points to 21.8% in Q1.
Region-wise, revenue from operations within India grew about 20% to Rs 911.96 crore, while revenue from outside India declined nearly 10% to Rs 127.25 crore. Emami derives 87% of its overall revenue from India; the rest comes from international markets.
Hair and scalp care were the strongest-performing category with 11% growth, while skin care and health care grew 3% and 2%, each.
The company’s strategic investments portfolio grew 61% on a like-to-like basis and contributed around 18% of domestic business in Q1. Organised channels grew 19% and now account for 32% of domestic business. Quick commerce contributes 35% of e-commerce sales, the firm said.