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Emami Ltd registered near seven per cent in standalone net profit at ₹225 crore for the quarter ended December 31, 2022, compared with ₹211 crore in the same period last year.
Revenue from operations on a standalone basis declined by nearly four per cent at ₹836 crore during the quarter under review against ₹875 crore logged in the same period last year.
On a consolidated basis, net profit grew by six per cent at ₹233 crore, while revenue from operations increased marginally by one per cent at ₹983 crore during the quarter under review.
Demand patterns
During the quarter, demand patterns for the FMCG sector remained sluggish, with rural markets experiencing continued demand pressure. Further, a warmer winter season across the country impacted sales even more, the company said in a press statement.
Domestic business grew by one per cent during the quarter translating into a three-year CAGR of 6 per cent. While rural markets remained muted, urban-centric new age channels like modern trade continued to grow strongly by 20 per cent and e-commerce by 45 per cent during the quarter. Both modern trade and e-commerce put together now contributes to little over 18 per cent of domestic revenues against close to 14 per cent in Q3 last year.
International business grew by 7 per cent translating into a 3-year CAGR of 13 per cent inspite of several key markets facing geopolitical challenges. The growth has been mainly driven by strong performances in markets of MENA, CIS, Bangladesh and South-East Asia, it said.
Inflationary woes
During the quarter, gross margins at 65.9 per cent contracted by 150 basis points due to inflationary pressure and favourable portfolio mix last year. EBIDTA at ₹294 crore declined by 14 per cent over previous year due to inclusion of new subsidiary costs, and strategic outlays on distribution expansion in rural, digital and modern trade channels.
“We continue to invest strongly behind our power brands, innovations, channel expansions and distribution optimizations. We believe that these sustained efforts will help us achieve sustainable and profitable growth,” Harsha V Agarwal, Vice-Chairman and Managing Director, Emami, said in the statement.
The company’s scrip closed at ₹419.30 — down by 0.76 per cent on the BSE on Friday.
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