FMCG Major Emami Ltd reported a 25.6 per cent growth in turnover at Rs 482 crore in the first quarter of 2014-15 and 16.7 per cent growth in PAT at Rs 71 crore over the corresponding quarter in last year.
Domestic business showed a topline growth of 19.7 per cent, the highest growth recorded in the last 15 quarters. Despite the high increase in spends because of several new products launched during the quarter, the company’s EBIDTA rose 26.7 per cent, bettering industry average.
Aggressive marketing campaigns resulted in double-digit growth for most of Emami’s power brands. According to AC Nielsen data, the company gained market shares across key categories in the first quarter.
“Navratna oil has gained 522 basis points (bps) with our value market share at 61.3 per cent. Fair & Handsome has gained 767 bps at 63.9 per cent market share. Boroplus antiseptic cream maintained its leadership at 77.1 per cent market share. Balms market share also improved to 60.3 per cent,'' the company said.
International business
International business grew over 100 per cent during the quarter doubling the sales achieved during the corresponding quarter in FY2013-14. The company performed well in Bangladesh, where Emami has its own plant, Saudi Arabia, Oman in the West Asia, Kenya, Uganda and Russia.
Mohan Goenka, a director of the company, in a statement said: “Adoption of correctional measures, some definite consolidation in our international business and robust performance by all our power brands led to this considerable improvement. We sustained our sales momentum through a strong focus on internal optimisation & effective cost management. Judicious price hikes and easing of the input price pressure, especially for the agro-based materials, led to a positive impact and margin expansion.”