EMAMI POSTS NET SALES GROWTH OF 2% & PROFIT GROWTH OF 8% IN Q3FY23
The Board of Directors of Emami Limited met on Friday, 3rd February 2023 to consider the unaudited financial results of the company for the third quarter and nine months ended 31st December 2022.
During the quarter, demand patterns for the FMCG sector remained sluggish, with rural markets experiencing continued demand pressure. Further, a warmer winter season across the country impacted sales even more. In the given macroeconomic context, Net sales at ₹975 crore grew by 2% and Revenues at ₹983 crore grew by 1% during the quarter translating into a healthy 3 year CAGR of 7% compared to the pre-pandemic period.
Domestic business grew by 1% during the quarter translating into a 3 year CAGR of 6%. While rural markets remained muted, urban centric new age channels like Modern Trade continued to grow strongly by 20% and e-commerce by 45% during the quarter. Both Modern Trade and eCommerce put together now contributes to 18.4% of domestic revenues against 13.8% in Q3 last year
International business grew by 7% during the quarter translating into a 3 year CAGR of 13% inspite of several key markets facing geopolitical challenges. The growth has been mainly driven by strong performances in markets of MENA, CIS, Bangladesh & SEA.
During the quarter Gross margins at 65.9% contracted by 150 basis points due to inflationary pressure and favourable portfolio mix last year. EBIDTA at Rs. 294 crore declined by 14% over previous year due to inclusion of new subsidiary costs, and strategic outlays on distribution expansion in rural, digital and modern trade channels. However, Profit after tax at Rs. 237 crore grew by 8% over previous year.
Mr Harsha V Agarwal, Vice Chairman and Managing Director, Emami Limited said:
“The environment has been challenging due to high inflation, consumption slowdown, poor rural growth and a warmer winter. In the given circumstances, we have delivered satisfactory performance with a 7% revenue growth on a 3 year CAGR basis in Q3FY23. We continue to invest strongly behind our power brands, innovations, channel expansions and distribution optimizations. We believe that these sustained efforts will help us achieve sustainable and profitable growth”
Mr Mohan Goenka, Vice Chairman and Whole-Time Director, Emami Limited said:
“Notwithstanding the muted consumption patterns, our focus on innovation remains strong. Our new launches and digital first NPD’s have contributed 4% to our Domestic net sales during the quarter and new age channels viz. Modern trade, eCommerce and D2C continue to grow in excess of 20%. Our International business also reported 7% quarterly growth despite tough market challenges in Bangladesh, Nepal and Sri Lanka.”