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Homegrown FMCG company Emami Ltd has reported a standalone net loss of ₹37 crore for the quarter ended March 31, 2020, against a a net profit of ₹49 crore in the corresponding period last fiscal.
For the period under review, the company saw its revenue from operations decline over 20 per cent YoY to ₹460 crore (₹582 crore).
During FY20, the company saw its standalone net profit reduce by over 5 per ,cent to ₹289 crore (₹305 crore). Revenue from operations stood at ₹2,390 crore, or a 4 per cent YoY decline (₹2,489 crore).
The Kolkata-based company, in a media release, maintained that the business environment is facing challenges from weak consumption trends, “impacted severely” by Covid-19.
The lockdown disrupted operations from the last fortnight of March; it virtually came to a standstill until the first fortnight of April. The consumer shift towards essentials impacted the “sale of niche and discretionary items”, it added.
According to Mohan Goenka, Director, Emami Ltd, strict cost control measures saw gross margins and cash profits improve. Gross margins improved by 130 basis points to 67 per cent with cash profits also improving.
“FY20 has been one of the most challenging years for the company,” he said.
Incidentally, Emami’s power brands increased their market share in both domestic and international markets. In the domestic business, Kesh King grew its volume market share by 140 bps at 26.6 per cent; balms grew by 130 bps at 54.9 per cent; BoroPlus grew by 30 bps at 74.1 per cent and Navratna grew by 10 bps at 66.4 per cent.
Emami’s international business grew 16 per cent for the full year, led by countries such as Bangladesh and key brands like 7 Oils in One. The performance in Sri Lanka “is also looking promising”, it said in the release.
On a consolidated basis, a 17 per cent decline in Q4 revenues led to a drag in its overall revenues for FY20, which stood at ₹2655 crore, a nominal 1 per cent YoY decline. Net profit remained at FY19 levels of ₹302 crore (apprx).
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