Emami consolidated revenue up 4% YoY at Rs 972 crore in Q3
The company's PAT grew by 5% at Rs 220 crore in the third quarter
For Emami Limited, the quarter witnessed high inflation leading to a deceleration in consumer demand for the third quarter and nine months ended 31st December 2022.
Despite this consumption moderation and notwithstanding a high base of 15% growth in the corresponding quarter previous year, Consolidated revenues at Rs. 972 cr grew by 4% on a year-on-year basis and at 9% on a 2 year CAGR basis.
During the quarter, the Company launched various TV Commercials for many of its brands e.g. Zandu Chyawanprash with Ajay Devgn, Kesh King Oil with Shilpa Shetty, BoroPlus soft with Nushrratt Bharuccha and Zandu Ortho Vedic Oil with the wrestler Khalli. A new TV & digital campaign for Navratna in Southern markets and a new campaign for BoroPlus Doodh Kesar Body Lotion were also launched. The Company continued to leverage the digital platforms with targeted campaigns and engaged various influencers to promote its brands.
During the quarter, EBIDTA at Rs. 342 cr was flat over last year despite Gross margins at 67.4% contracting by 300 basis points due to inflation in key raw material prices. On a 2 year CAGR basis, EBIDTA grew by 14%. However, PAT at Rs. 220 cr grew by 5% over previous year.
In 9MFY22, Consolidated Revenues at Rs. 2,422 crore grew by 13%, EBIDTA at Rs. 788 crore grew by 9%, PAT at Rs. 483 crore grew by 31% and Cash Profit at Rs. 734 crore grew by 13%.
Mohan Goenka, Director, Emami Limited said, "We are satisfied with the performance achieved amidst chaos and lockdown that prevailed in some form or the other during the quarter. Various initiatives undertaken for expanding our reach have resulted in increase in rural penetration and improved distribution. Our focus on new-age channels like Modern Trade, SAMT, e-commerce and D2C business remains strong with more than 5% of our domestic revenues being generated digitally.”
Harsha V Agarwal, Director, Emami Limited said, "Our performance during the quarter has witnessed a reasonable growth despite a high base. We are happy that most of our brands have continued to perform well to maintain their leadership positions. Despite inflationary pressures and rising costs, we have managed to protect our EBIDTA, which we believe is commendable in the current environment. Our International Business has also performed well growing by 7% on a year on year basis and by 16% on a 2 year CAGR basis led by Bangladesh and few other regions.”
Domestic business grew by 3% on a year-on-year basis over a base of 16% growth in the previous year, translating into a 2 year CAGR of 9%. Modern trade grew by 14% and ecommerce continued its robust run growing by 75% over previous year. In Q3FY22, the salience of these new age channels has increased to 14% of domestic revenues.
Distribution initiatives continued to progress with additional 5800 rural towns being added in the last 9 months through Project Khoj. Revenues and presence in Standalone Modern Trade outlets increased with coverage expanding to 40 cities and more than 3400 outlets. The Company has also activated more than 26,000 additional outlets for its healthcare products by focusing on Ayurvedic bhandars and chemist outlets.
International Business grew by 7% on a year on year basis. It however grew by 16% on a 2 year CAGR basis. Excluding sales of Immunity & Hygiene range, International Business grew by 14% led by key geographies like Bangladesh & Sri Lanka in SAARC and other regions like Africa & SEA.
