Fast-moving consumer goods (FMCG) major Emami on Thursday reported 47.84 per cent year-on-year (YoY) jump in its consolidated net profit at Rs 39.12 crore for the first quarter ended June 30, 2019.
"The flagship company of the diversified Emami Group had posted a consolidated net profit of Rs 26.46 crore during the same quarter last year," Emami said in a filing to the Bombay Stock Exchange.
Consolidated net sales rose by 6 per cent to Rs 648.64 crore in April-June quarter of the current fiscal as against Rs 614.38 crore in the year-ago period, Emami said in a regulatory filing.
The company's EBITDA (Earnings Before Interest, Tax, Depreciation and Amortization) grew 11 per cent to Rs 134 crore in Q1FY20 as compared to Rs 120.4 crore in Q1FY19. The EBITDA margin rose by 110 basis points (bps) to 20.7 per cent.
"The June quarter witnessed challenges in terms of adverse economic conditions such as channel liquidity issues and muted rural incomes which coupled with a high base in Q1FY19 impacted growth levels in the domestic business. Despite such challenges, the company closed the quarter with revenues of Rs 649 crore which grew by 6 per cent over previous year," Emami said in a regulatory filing.
During the quarter under review, both Kesh King and 7 Oils post robust growth, while Navratna grew satisfactorily, the company said. However, muted growth in pain management, male grooming, BoroPlus and healthcare range led to lower growth in the domestic business, it said.
"While, key brands like Navratna, Zandu & MenthoPlus balms, Kesh King and BoroPlus continued to gain market shares, Fair and Handsome maintained its leadership," Emami said in the exchange filing.
The Kolkata-headquartered firm's international business rose by 34 per cent led by a strong performance in SAARC and MENAP regions. Excluding, the new acquisition Creme 21, international business climbed by 10 per cent, it said.
Commenting on Q1 earnings, Mohan Goenka, Director, Emami Limited said, "Despite continuing input cost pressure, our EBIDTA margins expanded by 110 bps. However, the macroeconomic environment continues to be challenging, with a distinct slowdown in the consumer demand curve particularly for discretionary products."
"With the stabilization of raw material prices and the government impetus to put rural growth on the fast track, we expect business to bounce back in the coming quarters," he added.
Following Q1 earnings, shares of Emami closed 1.38 per cent higher at Rs 312.10 apiece on the BSE on Thursday.
Edited by Chitranjan Kumar
Also Read: Why Deloitte resigned as DHFL auditor
Copyright©2021 Living Media India Limited. For reprint rights: Syndications Today