Emami Q1FY25 revenue up 10% at Rs 906 cr, buoyed by volume growth

Emami Ltd has posted robust volume-led profitable growth in Q1 FY25. The company’s revenue from operations was up 10% at Rs 906 crore – Domestic Business grew by 10% with a volume growth of 8.7%, while International Business grew by 11% growth in constant currency. Modern trade, eCommerce, and institutional channels continued to post strong growth, while general trade also rebounded to positive territory.

In Q1 FY25, gross margins at 67.7% expanded by 230 basis points. EBIDTA at Rs 216 crore grew strongly by 14%, despite strong investments behind brands, which led to a 21% surge in A&P spends. Notably, profit before tax at Rs 178 crore grew by 19% and profit after tax at Rs 153 crore grew by 11%.

Despite geopolitical crisis and currency depreciations in key geographies, International business grew by 11% in constant currency and by 10% in INR terms. The performance was led by double digit growths in MENA and SAARC regions.

As the Company celebrates its 50th anniversary commemorating five decades of delivering happiness to consumers worldwide, this milestone year has begun on a positive note. Resilience and innovative spirit have always been the cornerstones of Emami’s success, driving it to achieve commendable performance and setting the stage for a bright and prosperous future. 

The quarter witnessed sequential improvement in demand trends with slight green shoots witnessed in rural demand. However, increasing food inflation continued to impact discretionary consumption. The country witnessed one of its hottest summers, boosting a healthy demand for summer products but dampening sales of non-summer products and reducing out-of-home consumption. 

The summer portfolio delivered strong growth, fuelled by the robust performances of Navratna Cool Talc and Dermicool. Healthcare range, 7 Oils in One, The Man Company, Brillare, and BoroPlus also performed well.

Innovation being a hallmark of Emami, the Company launched two extensions for Dermicool - “Dermicool Her”, the first ever prickly heat powder for women during the quarter and Dermicool soap in the Modern trade and eCommerce channel. Under the Kesh King brand, the Company launched Organic Rosemary Oil & Rosemary Shampoo in the ecommerce space. Additionally, the Company also introduced five new digital-first products: Dia-BTS tonic, DiaBTS tablets, Zandu Neelibhringar Hair Oil, Zandu Ashwagandha 66 (KSM-66) and Zandu Shilajit Gold Plus Resin capsules on Zanducare portal.

To further strengthen the brand equity of Navratna, the company onboarded renowned comedian Kapil Sharma and his team for Navratna Cool Oil’s new campaign - “Thandak ka Badshah.” A new TV commercial featuring Shilpa Shetty and Palak Tiwari was also launched to drive awareness and consideration for Kesh King Shampoo.

Harsha V Agarwal, Vice Chairman and Managing Director, Emami Limited, commented, “I am very happy to announce a strong and profitable growth this quarter, highlighted by robust domestic volume growth of 8.7%, a befitting start to the new financial year as we celebrate our 50th Anniversary.   Our summer portfolio performed exceptionally well, led by the stellar performances of our power brands, Navratna and Dermicool. Modern trade, eCommerce, and institutional channels continued to post strong growth in the Domestic business and our International Business also witnessed impressive growth of 11% in constant currency driven by the MENA and SAARC regions.  As we move forward, we remain committed to delivering sustainable and profitable volume-led growth.”

Mohan Goenka, Vice Chairman and Whole-Time Director, Emami Limited, added here, “I am delighted to share that while our sales grew in double digits, our profits grew even faster with a 14% growth in EBITDA, despite 21% higher investments behind our brands. Our EBITDA margins also improved by 90 basis points. We continue to focus on our strategy to improve our distribution, invest aggressively in our key brands, and drive market share growth across our portfolio. With the forecast of a normal monsoon and the government's continued focus on macro-economic growth, we expect growth to accelerate in the coming months.”