Home-grown FMCG company Emami Ltd saw a 19 per cent decline in standalone net profit to ₹67 crore for the first quarter ended June 30, 2020. Net profit in the comparable period last year stood at ₹83 crore.

For the period under review, the company saw standalone revenue from operations decline by 26 per cent to ₹435 crore (₹589 crore).

The company in an investor presentation said performance in April and May impacted due to lockdown. Demand recovery or “green shoots” were witnessed from June while the company saw double digit growth in July.

Domestic secondary sales witnessed de-growth of 15 per cent YoY in Q1FY21. New launches contributed to 5 per cent of the domestic revenues in the quarter under review.

While traditional channels were impacted, sales through e-commerce doubled in the domestic business.

International sales declined by 18 per cent and institutional sales fell by 38 per cent.

According to Mohan Goenka, Director, Emami has successfully overcome the challenges to post a high single digit growth in June and double digit growth in July.

“Margins grew due to stringent cost control measures and all our new products performed well, particularly the personal hygiene and immunity building categories. Going forward, we expect the growth momentum to continue,” he said. Raw material prices were also benign.

On a consolidated basis, the company saw revenue from operations drop by 26 per cent YoY to ₹481 crore while net profit saw a 2 per cent increase to ₹40 crore.

The healthcare and pain management portfolios of Emami Ltd saw a 23 per cent and 15 per cent YoY growth in Q1FY21 while Boroplus saw a 28 per cent growth during the period.

However, offerings under Navratna, Kesh King and in the male grooming categories saw a YoY decline of 41 per cent, 33 per cent and 70 per cent, respectively.

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