Emami Group reported a consolidated net profit for the second quarter of FY24 at Rs 178.50 crore, down 3.1 per cent as against Rs 184.18 crore during the same period last year. It posted revenue from operations at Rs 864.87 crore, up 6.3 per cent in comparison to Rs 813.75 crore during the second quarter of FY23. “The company demonstrated remarkable resilience in the second quarter and half-year ending on 30th September 2023, overcoming challenges such as poor monsoons, food inflation, and subdued demand in rural markets,” Emami said. The company EBITDA stood at Rs 233. Crore, up 19.4 per cent on-year.
Emami also declared its first interim dividend at 400 per cent, that is, Rs 4 per equity share on equity share of Re 1 each for the financial year 2023-24. “The record date for ascertaining the names of the members who will be entitled to receive the Interim Dividend is Wednesday, 15th November, 2023, as intimated vide our letter dated 28th October, 2023,” the company said in a regulatory filing.
Leveraging lower raw material costs and judicious price hikes, the quarter saw a remarkable expansion in gross margins by 350 basis points, reaching 70.1 per cent. EBITDA soared to Rs 234 crore, showcasing an impressive 20 per cent growth, with margins at 27.0 per cent, an increase of 300 basis points.
Emami’s Q2 performance across markets
Emami said that its domestic business witnessed a 4 per cent growth with a volume growth of 2 per cent, driven by channels catering to urban markets such as modern trade and e-commerce. The international business also expanded by an impressive 12 per cent during the quarter, delivering a constant currency growth of 16 per cent, primarily attributed to robust performances in the SAARC and MENAP regions.
The company also unveiled a range of innovative digital-first products in the domestic business during the quarter, including Glycerine bathing bars under the BoroPlus range, an Organic Onion hair mask under the Kesh King brand and introduction of 10 new products on the Zanducare portal. The company also launched 3 new products under the Creme 21 brand in the international markets.
Additionally, Emami also made its foray into the juice category with ‘AloFrut’ through strategic investment in Axiom Ayurveda Pvt Ltd and its subsidiaries/associations by acquiring 26 per cent equity stake.
“In this dynamic and challenging environment, our results exemplify our dedication to growth and innovation, marked by a good increase in both volumes and revenues. Strong performance by both modern trade and e-commerce has led to a decent revenue growth of 6 per cent and an impressive constant currency growth of 16 per cent in our international business during this quarter. Our recent expansion into the juice category, marked by a strategic 26 per cent investment in Axiom Ayurveda (AloFrut), aligns with our vision to diversify into high growth segments where we are currently not present. These strategic entries in diverse categories act as a launch pad for future growth of the Company,” said Harsha V Agarwal, Vice Chairman and Managing Director, Emami Limited.
“I’m delighted to announce our Company’s positive performance in Q2FY24. Despite macroeconomic challenges, we achieved a 6 per cent revenue growth. Notably, our gross margins expanded by 350 basis points, showcasing our operational excellence. EBITDA soared by 20 per cent, with margins expanding by 300 basis points, underscoring our dedication to value and quality. These achievements affirm our commitment to delivering value and quality to our consumers, partners and stakeholders. With the Government’s support creating favorable conditions in rural markets, we’re poised for a strong second half, amplifying our market presence.”