Emami Q3 Results: Profit jumps 37% to Rs 202 crore, revenue up 13%

Emami Q3 Results: Profit jumps 37% to Rs 202 crore, revenue up 13%

KOLKATA: FMCG firm Emami Ltd on Wednesday reported 36.6 per cent jump in its standalone net profit at Rs 202.17 crore for the third quarter ending December 2020, while revenue from operations surged by 13 per cent to Rs 845.37 crore.

The makers of Boroplus and Zandu said the domestic business grew by 16 per cent in the period under revenue led by 13 per cent growth in sales volume driven by a favourable season and consumption environment. Emami said stringent cost control measures and benign raw material prices helped the company to improve its margins.

The quarter witnessed an all-round growth across major brands with the healthcare range growing by 38 per cent, BoroPlus by 21 per cent, Kesh King by 16 per cent, pain management range by 12 per cent and 7 Oils in One by 32 per cent. Emami said the male grooming range recovered and posted positive growth led by the relaunch of Fair and Handsome range.

The company said while rural markets continued to perform better, growth in urban markets also picked up. All the channels continued to perform well and posted convincing growth with e-commerce channel growing by 3.5 times during the quarter and modern trade by 51 per cent.

Mohan Goenka, director at Emami, said the company is hopeful to close 2020-21 fiscal year at high single digit growth due to the recovery in last two quarters. The growth momentum has continued aided by aggressive growth strategies, dedicated team efforts, quality products and stringent cost control measures, he said.

“Rural offtakes continue to march ahead of urban, which too have started picking up. We are optimistic to close the year not only on a positive note but expect to post a high single digit overall growth,” said Goenka.

Harsha V Agarwal, director at Emami said the growth has come from across channels in last two quarters which it expects will continue. He said the international business also grew by 26 per cent.

“Our strategy to focus on immunity boosting and hygiene range of products and tapping opportunities in market with high hair oil usage with our brands paid off well in international markets. Our ad-spends having returned to pre-Covid levels, we will continue to invest in our existing brand and categories, to increase market penetration where we believe we have a strong right-to-win,” he said.

During the quarter, the company launched a new brand Emasol in the home hygiene space and has roped in cricketer Shikhar Dhawan as its brand ambassador. It has also launched Zandu Ortho Vedic Oil for knee and joint pain relief. Emami said new launches contributed 4 per cent to domestic sales in the nine months of the current fiscal.

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