The Board of Directors of Emami Limited met on Monday 27th January 2025 to consider the unaudited financial results of the company for the third quarter and nine months ended 31st December 2024.
The macroeconomic environment during the quarter presented a mixed bag of challenges and opportunities. Urban demand faced headwinds, influenced by rising food inflation and liquidity constraints in retail and wholesale trade channels. Conversely, rural demand showcased resilience, buoyed by favorable monsoon conditions and a robust harvest, providing a silver lining amidst market uncertainties. However, the delayed onset of winter impacted seasonal categories, adding another layer of complexity to an already dynamic market environment.
Despite these macroeconomic headwinds, the company reported a robust growth of 9% in its core domestic business, driven by a healthy volume growth of 6%. Key brands such as the Healthcare range and BoroPlus range delivered strong growth despite the challenges posed by delayed and mild winters. Meanwhile, Navratna and the Pain Management portfolio showcased remarkable resilience, achieving growth in the low single digits.
A key milestone this month was the rebranding of Fair and Handsome to Smart and Handsome, marking a significant evolution in the brand’s identity. This refreshed positioning reflects a broader focus on male grooming, offering effective solutions for face, body, and hair care to address the diverse needs of today’s dynamic young men. With the endorsement of Kartik Aaryan as the brand ambassador and exciting new product launches on the horizon, the company is confident that Smart and Handsome will further cement its leadership in the evolving male grooming market. Additionally, the launch of Mentho Plus Balm Total in the southern region in December 2024 has expanded the company’s offerings in the pain management segment, leveraging the trusted equity of Mentho Plus Balm.
On the distribution front, the company’s organized channels—Modern Trade, e-Commerce, and Institutional Sales—continued their robust performance, now contributing 28.6% of the domestic business, an increase of 160 basis points in Q3. These channels demonstrated nearly double the growth rate compared to overall business, underscoring their critical role in driving business expansion.
The Company continued to deliver profit-led growth, with improved margins across the board. Gross margins expanded by 150 basis points to 70.3%. EBITDA grew by 8% to ₹339 crore, with margins expanding by 70 basis points and Profit After Tax also increased by 8% to ₹279 crore.
The Board of Directors announced a second interim dividend of 400%, amounting to ₹4 per equity share for FY24. This follows the first interim dividend of 400%, also amounting to ₹4 per share, declared in Q2. With this, the cumulative dividend payout for FY24 stands at an impressive 800%, equivalent to ₹8 per share. This underscores the company’s unwavering commitment to maximizing shareholder returns and its adherence to a robust dividend payout policy.
Mr Harsha V Agarwal, Vice Chairman and Managing Director, Emami Limited said:
“ I am pleased to announce a healthy 9% growth in our core domestic business, driven by a healthy 6% increase in volume in Q3FY25. This marks the second quarter with high single-digit growth, coupled with expansion in both Gross margins and EBIDTA margins despite rising input costs across the sector. Our targeted distribution strategies for new-age channels have played a vital role in driving success across the business. Strategic initiatives for Kesh King and male grooming along with the expected revival of International Business, position us confidently for sustained, robust growth going ahead. These results reaffirm our confidence in the positive outlook for FY25 and our steadfast commitment to delivering long-term value to our stakeholders.”
Mr Mohan Goenka, Vice Chairman and Whole-Time Director, Emami Limited said:
“FY25 is shaping up to be a promising year as we continue to deliver profit-driven growth, achieving improved margins across the board and outperforming industry benchmarks. EBITDA increased by 8% during the quarter, with margins expanding by 70 basis points underscoring our strong focus on operational excellence. The strategic rebranding of Fair and Handsome to Smart and Handsome, inspired by deep consumer insights coupled with strategic initiatives for skin care and haircare brands offers significant growth potential.”
