Emami Ltd on Thursday released its quarter earnings for the first quarter of FY25. It posted profit during the period at Rs 152.64 crore, up 10.8 per cent in comparison to Rs 137.72 crore during the same period of last year. It recorded revenue from operations at Rs 906.07 crore, up 9.7 per cent as against Rs 825.66 crore recorded during the June quarter of FY24. The company EBITDA stood at Rs 216.5 crore, up 14 per cent YoY. Modern trade, e-commerce, and institutional channels continued to post strong growth, while general trade also rebounded to positive territory, it said in a regulatory filing.
Mohan Goenka, Vice Chairman and Whole-Time Director, Emami Limited, said, “I am delighted to share that while our sales grew in double digits, our profits grew even faster with a 14 per cent growth in EBITDA, despite 21 per cent higher investments behind our brands. Our EBITDA margins also improved by 90 basis points. We continue to focus on our strategy to improve our distribution, invest aggressively in our key brands, and drive market share growth across our portfolio. With the forecast of a normal monsoon and the government’s continued focus on macro-economic growth, we expect growth to accelerate in the coming months.”
While the domestic business of the company grew by 10 per cent with a volume growth of 8.7 per cent, international business was up 11 per cent in constant currency terms. Despite geopolitical crisis and currency depreciations in key geographies, Emami’s International business grew by 11 per cent in constant currency and by 10 per cent in INR terms, led by double digit growths in MENA and SAARC regions.
Emami said that the quarter witnessed sequential improvement in demand trends with slight green shoots witnessed in rural demand. However, increasing food inflation continued to impact discretionary consumption. With an elongated heatwave situation in the country, the company said that it helped boost a healthy demand for summer products but dampened the sales of non-summer products and reduced out-of-home consumption. “The summer portfolio delivered strong growth, fuelled by the robust performances of Navratna Cool Talc and Dermicool. Healthcare range, 7 Oils in One, The Man Company, Brillare, and BoroPlus also performed well,” it said.
Harsha V Agarwal, Vice Chairman and Managing Director, Emami Limited, said, “I am very happy to announce a strong and profitable growth this quarter, highlighted by robust domestic volume growth of 8.7 per cent, a befitting start to the new financial year as we celebrate our 50th Anniversary. Our summer portfolio performed exceptionally well, led by the stellar performances of our power brands, Navratna and Dermicool. Modern trade, e-commerce, and institutional channels continued to post strong growth in the Domestic business and our International Business also witnessed impressive growth of 11 per cent in constant currency driven by the MENA and SAARC regions. As we move forward, we remain committed to delivering sustainable and profitable volume-led growth.”