EMAMI POSTS 19% TOPLINE GROWTH IN Q1FY19 Q1FY19 HIGHLIGHTS
Kolkata, August 1st 2018: The Board of Directors of Emami Limited met on Wednesday, 1st August 2018 to consider the unaudited financial results of the company for the quarter ended 30th June 2018.
The company closed the quarter with a turnover of ₹ 614 cr with a like to like growth of 19%. Domestic business grew by 21% with major brands like Navratna, Pain Management Range, 7 Oils in One, Male Grooming range and Healthcare posting strong volume led growth. While Wholesale channel saw some recovery, Direct Rural channel and Modern trade continued their growth trajectory. Market share gains continued for key brands.
Despite increasing prices of material costs, Gross margins at 66.3% grew by 140 bps. EBIDTA grew by 54% and Cash Profit grew by 45%. EBIDTA margins at 20.1% grew by 520 bps and Cash Profit margins at 18.0% grew by 390 bps.
Mr Mohan Goenka, Director, Emami Limited said: “We started the year FY19 with 19% growth in the first quarter. Both volume and revenue registered a handsome recovery compared to the GST impacted corresponding quarter of last year. This quarter, we have seen wholesale recovery across the regions, which is a positive sign. We continued to put emphasis on rural and retail distribution and focussed on van operations as a part of our rural distribution, particularly targeting areas with under 5K population strata. Good growth also came from Modern trade and CSD sales. Internationally, volatile business environment affected the CIS market. However, exceptional performance by SAARC and MENAP regions have been instrumental to pull off growth for this quarter.”
Mr Harsha V Agarwal, Director, Emami Limited said: “Despite an erratic summer, our brands led by Navratna and Pain Management have registered handsome double digit growth for the first quarter. Steady growth came from men’s facewash, light hair oil and deodorant categories while new launches like Fair and Handsome Laser 12 and Emami Diamond Shine Crème Hair Colour have shown promising trends. Healthcare business grew satisfactorily at around 28%. Our way forward is to manage business strategically through innovation, prudent cost management and operational efficiency.”
SALES AND DISTRIBUTION:
The Company has already augmented its sales and distribution strength by increasing its direct reach and investing in sales analytics which is yielding positive results. Increased penetration in rural areas through Van Operations has ensured product availability in even those towns having a population below 5,000.
Nationally launched Diabrishta, a unique sugar-free Ayurvedic Arishta under the Zandu umbrella. It is enriched with the goodness of 21 Ayurvedic ingredients to maintain healthy sugar level.
Roped in legendary actor Amitabh Bachchan to endorse OTC brands like Zandu Pancharishta and Zandu Nityam Tablets.