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Homegrown FMCG player Emami Ltd reported a 39 per cent increase in standalone net profit at ₹93 crore for the June quarter against ₹67 crore clocked in the year-ago-period.
The net profit surge came on the back of a 40 per cent YoY rise in revenue to ₹608 crore. Revenue stood at ₹435 crore in Q1FY21.
The company saw standalone net profit rise sequentially by two per cent, although revenues dipped 6 per cent to ₹649 crore. Cash profit also improved sequentially.
The company, in a statement said, a second wave of Covid infections surged across the country mid-April onwards leading to lockdowns and restrictions affecting urban and rural regions. While the initial weeks of April witnessed sustained growth momentum, subsequent increase in infections led to “a challenging phase over the month of May”. Sales of personal care products were impacted and the demand for health and hygiene products were also muted compared to the first wave phase.
“Domestic business grew by 42 per cent over the previous year” and 5 per cent in comparison to Q1FY20 .
E-commerce push
Major brands “grew handsomely by more than 50 per cent during the quarter, except for Navratna”. The therapeutic oil brand posted a 21 per cent as sales were impacted lockdowns. During the quarter, modern trade grew 63 per cent and e-commerce continued its robust run growing by 3.7x with e-com sales accounting for 5 per cent of domestic revenues.
The company will continue to invest and focus on its healthcare portfolio that grew59 per cent YoY during the quarter.
According to Mohan Goenka, Director, Emami Ltd, the overall demand since early June has once again been showing improvement with the Covid positivity rates dropping to pre-second wave levels. “Our focus on the progress of standalone modern stores and increasing footprints in rural areas is progressing steadily,” he said.
International business grew 17 per cent despite pressure in the Middle Eastern geographies. The ‘Creme 21’ brands were extended into premium skin soaps in select international markets.
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