The Board of Directors of Emami Limited met on Tuesday, 25th May 2021 to consider the Audited financial results of the company for the fourth quarter and full year ended 31st March 2021.
Building on improved demand scenario coupled with increased focus on Healthcare and Hygiene products, the Company has consistently delivered broad based growth across brands, channels and businesses in Q4FY21. The quarter witnessed strong growth all around, with 44% growth in Domestic business and 28% growth in International Business. Both Net sales and revenues grew by 39% and 37% respectively on a consolidated level over previous year. Further, all major brands grew handsomely by more than 30% during the quarter.
Both the urban and rural markets performed well during the quarter and the Retail channel also picked up momentum. While Modern trade grew by 46%, ecommerce continued its robust run growing by 3x. In Q4FY21, ecommerce business increased its contribution by 200 bps to ~4% of domestic revenues.
During the quarter, the company introduced new variants of its existing brands for both general and ecommerce channels. Zandu Chyawanprash introduced a jaggery-based variant of Zandu Chyawanprash for the first time in India. The company also launched Kesh King Ayurvedic Onion Range and Navratna Gold Ayurvedic Cool Oil, specifically for the e-commerce channel.
The Company’s International business grew by 28% on back of robust performance in markets of SAARC, GCC & Africa during the quarter. Brands like 7 Oils in One, Creme 21 and Kesh King performed well in the International geographies. The CSD business however declined by 3% during the quarter.
During the quarter, input cost pressure increased due to inflation in key commodities which led to a gross margin decline of 250 bps. However, EBIDTA at Rs. 163 cr grew by 65% and EBIDTA margins at 22.3% grew by 380 bps. PAT at Rs. 88 cr grew by 3.8 times and PAT Margins at 12.0% increased by 760 bps. Cash Profits at Rs. 171 cr too increased by 57% with margins increasing by 300 bps at 23.4%.
For the full year, Consolidated Revenues at Rs. 2,881 cr increased by 8%. Gross margins at 67.7% increased by 70 bps on account of benign raw material prices in the earlier part of the year and stringent cost control measures. EBIDTA at Rs. 883 cr grew by 28%. EBIDTA margins which are at an all-time high of 30.7% grew by 460 bps. PAT at Rs. 454 cr grew by 50% with margins at 15.8% increasing by 440 bps and Cash Profits at Rs. 822 cr also grew by 29% with margins at 28.5% increasing by 440 bps.
The Company also rewarded its shareholders handsomely during the year by declaring two interim dividends of Rs. 4/- each, cumulatively amounting to Rs. 356 cr, i.e. a payout of 78% on PAT and 43% on Cash Profits. The Company also completed Buyback of its shares amounting to Rs. 221 cr (including taxes). Despite these outflows, the Company reported a Net Cash surplus of Rs. 357 cr at the end of the year.
Mr Mohan Goenka, Director, Emami Limited said:
“We are very happy to have continued with our growth momentum and consistently delivered broad based growth across brands, channels and businesses and close the fourth quarter with an overall revenue growth of 37% and EBIDTA growth of 65%, despite increase in major input costs in Q4FY21. While rural demand has sustained, urban demand is gradually picking up. Our domestic business grew by 44%, International business by 28% in Q4FY21 and we continued to improve our sales and profitability quarter on quarter. “
Mr Harsha V Agarwal, Director, Emami Limited said:
“This quarter’s performance delivering a consistent all-round growth meets with our expectation. All our major brands grew by more than 30% during the quarter with the Healthcare range’s performance leading the growth chart by 67%, followed by Kesh King which grew by 45%, Pain Management range by 38%, Navratna by 28%, BoroPlus by 4.5 times and Male Grooming range by 26%. Contribution of e-commerce business also increased from 1.7% of Domestic sales in Q4FY20 to 3.7% in Q4FY21. In our International Business, our new brand Creme 21 has consolidated its position and have come out on tops followed closely by 7 Oils in One. During the quarter, we invested in brand building, resulting in 37% growth in our ad spends, which is in line with our sales growth. With our focus on digitization and evolved business strategies, we are confident of continuing the growth momentum in the long run despite the 2nd wave of COVID-19”.