Emami's Profit Climbs 10% to Rs 150.6 Cr, Revenue Grows by 9.7% in Q1

Emami Ltd, a leading FMCG company, reported a 10.13% increase in profit after tax (PAT) to Rs 150.6 crore for the April-June quarter of 2024-25. This growth was driven by volume increases in the domestic market and margin expansion. The company had posted a PAT of Rs 136.75 crore in the same quarter last year, according to a regulatory filing.

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Revenue from operations rose by 9.73% to Rs 906.07 crore during the quarter under review, compared to Rs 825.66 crore in the corresponding quarter of the previous year. Total income, which includes other revenue, increased by 9.9% to Rs 916.53 crore during this period.

Domestic Business and Market Channels

Emami's domestic business grew by 10%, with a healthy volume growth of 8.7%. Modern trade, e-commerce, and institutional channels continued to show strong growth, while general trade also returned to positive territory.

The company's total expenses were Rs 689.56 crore, up 8.4% in the June quarter of FY24. Despite strong investments behind brands leading to a 21% surge in advertising and promotional spends, EBITDA at Rs 216 crore grew strongly by 14%, with gross margins expanding by 230 basis points to 67.7%.

International Business Performance

Emami's international business grew by 11% in constant currency terms and by 10% in INR terms, despite geopolitical crises and currency depreciations in key regions. The performance was led by double-digit growths in the MENA and SAARC regions.

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

Future Outlook and Market Strategy

Commenting on the results, Emami Vice Chairman and Whole-Time Director Mohan Goenka said: "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."

Goenka added that Emami continues to focus on its strategy to improve distribution, invest aggressively in key brands, and drive market share growth across its portfolio. With the forecast of a normal monsoon and the government's continued focus on macro-economic growth, he expects growth to accelerate in the coming months.

Shares of Emami Ltd closed 0.67% higher at Rs 823.10 apiece on the BSE.