The Board of Directors of Emami Limited met on 8 August 2019 to review the unaudited financial results for the quarter ended 30 June 2019.
The June quarter was impacted by challenging macroeconomic conditions, including channel liquidity constraints, muted rural demand, and a high base in Q1 FY19, which affected domestic growth. Despite these pressures, the company reported revenue of ₹649 crore, representing 6% year-on-year growth.
Business performance highlights
- Strong growth:
- Kesh King and 7 Oils-in-One performed strongly
- Navratna delivered satisfactory growth
- Weak segments:
- Pain Management, Male Grooming, BoroPlus, and Healthcare ranges showed subdued performance
- Market position:
- Navratna, Zandu, Mentho Plus, Kesh King, and BoroPlus continued gaining market share
- Fair and Handsome maintained category leadership
International business
- Grew 34% year-on-year driven by SAARC and MENAP regions
- Excluding acquisition of Creme 21, international growth stood at 10%
Financial performance
- Gross margin: 64.2% (down 210 bps due to higher raw material costs)
- EBITDA: up 11%
- EBITDA margin: 20.7% (up 110 bps)
- PAT: ₹39 crore (up 47%)
- PAT margin: improved by 170 bps
Management commentary
Director Mohan Goenka noted that the company delivered profit-led growth despite input cost pressures, and expressed optimism about future recovery supported by rural demand improvement and stabilizing raw material prices.
