FMCG company Emami Ltd reported a 22.4% increase in Q1 revenue to Rs. 590 crores, while EBIDTA rose by 32.9% to Rs. 100 crores and PAT at Rs. 88 crores grew by 23.9% compared to a year ago.
Domestic business in the first quarter grew steadily to achieve a healthy topline growth of 23.4%. Despite prevailing macro-economic challenges and not very favourable weather, both the consumer care and the health care segments have performed considerably well.
New brands such as Fair and Handsome Instant Fairness Facewash, Emami 7 Oils in One, Zandu Balm Ultra Power and ‘HE’ Deodorant continue to contribute to the growth during the first quarter.
The quarter also witnessed the launch of a brand extension – Zandu Gel Balm Junior, the first ever gel based balm for kids in the country. The company also scaled up its spend on both advertisement and brand building during the quarter. Despite the high increase in ad spends, the Company’s EBIDTA during the quarter rose by 32.9%, bettering industry average.
“Aggressive marketing campaigns, both ATL & BTL delivered rich dividends in terms of growth of most of our Power Brands. Navratna Oil, Navratna Cool Talcum Powder, Zandu Balm, Mentho Plus Balm, Fair & Handsome and Zandu HCD Range grew in healthy double digits and enhanced their respective market shares,” the company said.
With increased emphasis, improved visibility and focused execution, the Modern Trade business and Direct Rural business continued to grow at a steady pace, it added.
INTERNATIONAL BUSINESS
International business continued to maintain growth of over 21% during the quarter which is comparable to the corresponding quarter in FY14.
All the focused markets performed well with SAARC and GCC regions being the star performers, despite geo-political and economic challenges in some overseas markets. Most of our Power Brands led by Navratna and Fair and Handsome have performed very well and increased their market shares in the overseas markets.
Mr Mohan Goenka, Director, Emami Limited said: “The first quarter of 2015 has been challenging with subdued economic environment and unfavourable weather, which is expected to continue. Notwithstanding such hurdles, Emami has ensured a good performance to deliver a profitable growth during the quarter. Strong performance by all our power brands in key categories coupled with growth in International business has helped us to register a 22.4 % top line growth.”
Mr Harsha V Agarwal, Director, Emami Limited said: “Prudent approach, efficient cost management and robust business model have helped us to meet the challenging environment to remain competitive and profitable. For the long term, we will continue to focus on cost efficiencies and invest in R&D and brands to further grow our market share.
“As part of our aggressive growth strategy, we acquired the Kesh King business during the first quarter FY 16 and forayed into the Ayurvedic Hair & Scalp care segment. The Kesh King business is being integrated with Emami’s existing business and it has already started contributing to the growth. We plan to make Kesh King a pan-India brand soon.”