Emami Q4FY23 profit falls 59.4% on inflationary pressure, muted rural sentiments, unseasonal rains

Emami posted its fiscal fourth quarter profit at Rs 144.43 crore, down 59.4 per cent as against Rs 355.96 crore in the fourth quarter of FY22. It posted revenue from operations at Rs 835.95 crore, up 8.8 per cent in comparison to Rs 768.19 crore in the corresponding quarter of last year. The company EBITDA stood at Rs 223.6 crore, up 19.5 per cent on-year. “Despite a challenging demand scenario on account of high inflation, muted rural sentiments and unseasonal rains, we have delivered a resilient profit-led growth in Q4FY23,” said Harsha V Agarwal, Vice Chairman and Managing Director, Emami Limited. He further added that the company’s strategic investments and Dermicool acquisition performed well and contributed to the growth. “We will continue to make significant investment behind our core brands, innovations, channel expansions and digital optimisations which are expected to contribute immensely to future growth,” he said. 

Emami’s performance across markets

The domestic net sales at Emami grew by 5 per cent. Domestic sales were impacted by higher base effects due to the higher consumption of healthcare and pain management range during the Covid period. In terms of retail channels, modern trade and e-commerce continued to perform well, growing by 18 and 64 per cent respectively. “The contribution of both these channels to domestic sales increased to more than 20 per cent of Domestic net sales, a 500 bps growth over previous year,” Emami said in the regulatory filing. Further, the company has also launched Zandu Fast Relief Spray in Q4FY23 in line with the launch of Zandu Fast Relief Gel earlier in August 2022. “Overall, the company launched around 20 products during the financial year, with a majority being digital first launches on its D2C website http://www.zanducare.com,” it said.

Also Read

Page Industries Q4 profit falls 58.9% at Rs 78.35 crore due to lesser consumption, revenue down 12.8%

Global distressed funds go big on Indian realty

Interview | ‘I simply want what my parents left for our family,’ says Sugandha Hiremath, non-executive director, Hikal

Vodafone Idea fund raise delay a concern: Vaishnaw

In terms of international business, the growth was 19 per cent during the quarter despite high inflation, currency depreciation and geopolitical challenges in several key markets. “The growth was mainly driven by strong performances in markets of MENA, CIS and Bangladesh,” it said. For the full year, domestic business grew by 4 per cent in FY23 on a higher base of Covid contextual categories like pain management and healthcare range, and excluding these categories, domestic business grew by ~7 per cent in the financial year. International business, meanwhile, grew strongly by 20 per cent during the year. 

In terms of Emami’s core brands’ performance, Navratna range grew by 6 per cent in FY23 but declined by 3 per cent in the fourth quarter with irregular summer and intermittent rains impacting the summer offtakes. Its Kesh King range grew by 1 per cent in Q4 and FY23 with consumption by 82 lakh households, which is up 13 per cent over the previous year. Emami’s Pain Management range corrected by 9 per cent in the fourth quarter and by 14 per cent in FY23 even as sales grew by 31 per cent in Q4 and by 29 per cent in the full year in comparison to pre-pandemic period (Q4FY19 & FY19 respectively). BoroPlus range, meanwhile, grew by 1 per cent in FY23 but declined by 25 per cent in the fourth quarter.

“With softening of input costs and decreasing inflationary pressures we are hopeful of a better demand scenario and improved margins in FY24,” said Mohan Goenka, Vice Chairman and Executive Director, Emami Limited.