Emami Q2 FY25 revenues up 3% at Rs 891 cr, net profit grows 19%

The Board of Directors of Emami Limited met on Thursday, August 7, 2024 to consider the unaudited financial results of the company for the second quarter and half year ended September 30, 2024.

At a macro level, the quarter brought its share of challenges, with demand trends aligning closely with those seen in the first quarter. Persistent high food inflation continued to weigh on mass consumer spending. Internationally, political unrest in key markets, including Bangladesh, created some temporary disruptions.

In the given context, Emami reported overall revenues at Rs 891 crore grew by 3% with Domestic Business growing by 2.6%. Major brands Navratna, Dermicool and Healthcare range and Pain Management range performed well.

The company continued to drive its innovation pipeline forward, launching 11 new products this quarter. These include the DermiCool Sweat Reliever Super Active Talc and Ice Cool Shower Gel, as well as the De-Tan & Deep Cleansing Face Wash, Style Lock Shampoo, Fresh Impact Body Wash, Odour Control Shower Gel, and two EDT perfumes under the brand ‘HE’. In the healthcare segment, new additions to the Zanducare portal included Zandu Daily Health Super Greens, Zandu Dirghayuprash, and Zandu Hair Growth Serum. Additionally, the company relaunched its light moisturizing cream, BoroPlus Soft, with a new look.

The company’s International Business demonstrated resilience amid geopolitical challenges, achieving a 12% sales growth excluding Bangladesh. Overall, the International Business expanded by 6% in both constant currency and INR terms during Q2, driven by strong performance in the MENA region.

In the Q2FY25, gross margins increased by 60 basis points to 70.7%, while EBITDA grew by 7% to Rs 250 crore, with margins expanding by 110 basis points to 28.1%. Profit Before Tax rose by 13% to Rs 220 crore, accompanied by a 220 basis point margin expansion, and Profit After Tax surged by 19% to Rs 213 crore.

Harsha V Agarwal, Vice Chairman and Managing Director, Emami Limited, commented, “We are pleased to close the first half of the year with strong performance, achieving 6% revenue growth, 10% EBITDA growth, and a 16% profit increase despite macroeconomic challenges.  For H2 FY25, we expect stronger offtakes driven by improved rural demand and stable seasons ahead.”

“Our international business demonstrated resilience despite geopolitical challenges, delivering double-digit growth, excluding Bangladesh. Besides good performance of our existing brands, strategic investments and the recent launch of 11 new domestic products are set to boost consumer confidence and drive double-digit revenue growth in the second half,” he added.

Mohan Goenka, Vice Chairman and Whole-Time Director, Emami Limited, said, “Organized channels like Modern Trade, e-Commerce, and Institutional sales now contribute 26.6% to our domestic business, a 190-basis point increase in the first half. We remain committed to achieving high single-digit revenue growth and double-digit EBITDA growth for FY25.”

“The Q3 relaunch of Fair and Handsome and focused efforts on Kesh King strengthen our confidence in driving H2 growth. With a favourable winter forecast, we expect strong performance from our winter portfolio.”

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