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Homegrown FMCG company Emami Ltd reported a near 37 per cent jump in standalone net profit to ₹202 crore for the quarter ending December 30, 2020. Net profit in the year-ago period stood at ₹148 crore.
Standalone revenue from operations stood at ₹845 crore, up 13 per cent year-on-year, over the ₹748 crore it reported in Q3FY20.
On a consolidated basis, the company reported a 45 per cent jump in net profit, YoY, to ₹209 crore for Q3FY21; while revenue from operations increased by 15 per cent, YoY, to ₹934 crore.
Domestic business
According to a company statement, “a favourable season and a favourable consumption environment” led to all-round growth across major brands.
The healthcare range grew by 38 per cent; BoroPlus saw a 21 per cent growth; Kesh King grew by 16 per cent while the pain management range saw a 12 per cent growth. The ‘7 Oils in One’ hair-care portfolio grew by 32 per cent.
Offerings in the male grooming range “recovered and posted positive growth”, led by the re-launch of its ‘Fair and Handsome’ range.
While rural markets continued to perform better, growth in urban markets picked up; the company statement said adding that “all the channels continued to perform well and posted convincing growth with e-commerce channel growing by 3.5x during the quarter”. Modern trade channel saw a 51 per cent growth.
International businesses
The company’s international businesses saw a 26 per cent growth led by MENAP and SAARC regions during the quarter. Particular focus on immunity-boosting products & launch of the hygiene range during the ongoing Covid pandemic helped boost sales.
“Further, the strategy of identifying & tapping opportunities in markets with high hair oil usage, with brands like Kesh King & 7 Oils in One paid off well in International markets,” the statement said.
Margins
During the quarter, stringent cost control measures and benign raw material prices helped improve margins.
Gross Margins saw a 210 basis points growth (BPS) to 70.4 per cent; While EBIDTA (earnings before interest, depreciation, tax and amortisation) margins grew by 390 basis points to 36.4 per cent.
According to Harsha V Agarwal, Director, Emami Ltd expects to continue with this growth trajectory.
“Our ad-spends having returned to Pre-Covid levels, we will continue to invest in our existing brand and categories, to increase market penetration,” he said.
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