Amrutanjan Health Care Ltd reported a lower net profit of ₹3.66 crore for the first quarter ended June 30, 2022 as against ₹12.06 crore for the corresponding quarter last year. Sales was down marginally to ₹78.66 crore (₹86.89 crore).
Advertisement and selling expenses was ₹9.89 crore (₹9.32 crore; employee benefit expenses were flat at ₹12 crore, but other expenses increased to ₹10.63 crore (₹8.28 crore), says a company statement to the Bombay Stock Exchange.
The company in an investor presentation to the exchange said, this quarter can be best described as a ‘perfect storm’ for reasons like slow down in consumer consumption; relatively high stock build up in channels; delays in supply chain from beverage plant upgrade (line imported from Taiwan was delayed) resulted in supply issues of Electro + to market and increase in material costs. All these resulted in revenue shortfall and lack of operating leverage.
However, the bright spots remain growth of comfy business and smaller MRP sku’s in balm which we continue to focus and build during these inflationary times, the company said.
In the OTC division, key raw material prices excluding menthol crystal are higher when compared to Q1 FY22; the prices of packing materials were higher when compared to Q1 FY22; advertisement spend for Q1 FY23 was at ₹5.20 crore against ₹4.28 crore for Q1 FY22; advertisement spend for Comfy was at ₹3.90 crore for Q1 FY23 against ₹3.31 crore for Q1 FY22.
In the beverage division, raw material and packing material prices are higher when compared to Q1 FY22 and advertisement spend is at ₹1.35 crore for Q1 FY23 against ₹1.77 crore for Q1FY22.
Business is continuing to be healthier with complete cash collected for Fruitnik, the company said.
The company said that it remained focussed on executing key priorities, including to expand distribution; go global; grow E-Commerce vertical and costs control.