The FMCG major Emami has achieved a commendable turnover of Rs 575 crores, grew by 17.4 per cent in the second quarter and by 19.9 per cent in H1 FY16 at Rs 1,165 crores.
Grew by 30.3 per cent during the quarter at Rs 133 Crore Cash Profit (PAT+ Depreciation & Amortization), the recently release second quarter (Q2) report of FMCG major Emami Ltd has unveiled that It grew by 37.2 per cent in H1FY16 with cash profits at Rs 243 cr.
Founded in 1974, the FMCG major has commendably maintained a CAGR turnover of 17 per cent over the last 5 years, through its consistent business performance.
According to the Q2 result, the company’s overall turnover of Rs 575 crores grew by 17.4 per cent in the second quarter and by 19.9 per cent in H1FY16 at Rs 1,165 crores.
Commenting over the Q2 disclosure, Mohan Goenka, Director, Emami Limited said, “Despite deflationary environment, along with lower rural wage growth, and an overall sluggish consumer environment during the quarter, we are happy to announce the domestic business growth of 19.5 per cent in the second quarter and of 21.5 per cent in H1FY16. We have also managed to strengthen our market share in key categories during this quarter.”
Though reputed media reports highlighted the 32.97 per cent decline in consolidated net profit at Rs 61.34 crore for the second quarter ended September 30, 2015 on account of amortisation of Kesh King Intangibles.
However, the company disclosed about its new brands including Fair and Handsome instant fairness facewash, Emami 7 Oils in One, Zandu Balm Ultra Power and Zandu Gel Balm Jr. continued to perform well.
“All our power brands have performed satisfactorily in this quarter. Our bottom-line and EBIDTA margin have also improved due to lower input cost and cost reduction initiatives taken. Our newly acquired brand, Kesh King has made considerable contribution to the overall top line growth in the first quarter of its integration,” noted Harsha V Agarwal, Director, Emami Ltd
The Company’s EBIDTA during the quarter rose by 34.5 per cent and by 33.9 per cent in H1FY16 mainly on account of gross margin expansion, with a significant cash profits at Rs 133 crore, grew by 30.3 per cent in the second quarter and by 37.2 per cent in H1FY16 at Rs 243 crores.
The power brands continued to maintain leadership in key categories in H1FY16. Cooling Oils grew its volume market share by 860 bps at 73.5 per cent and Cool talc grew its volume market share by 20 bps at 26.2 per cent.
Balms, Boroplus Antiseptic cream and Fair and Handsome maintained their leadership positions with volume market shares at 56.4 per cent, 77.3 per cent and 62.4 per cent respectively.
Agarwal further added, “The Healthcare range has also continued its robust growth led by the stellar performance by Zandu Pancharistha. This competitive performance was delivered despite the subdued consumer sentiment and an untimely monsoon. However, we are expecting a gradual uptick in consumer demand in the next two quarters.”
Further, thrust has been put on increasing rural distribution and penetration under project ‘Swadesh’.
About international business
Impacted by geo-political and economic challenges in some overseas markets, the international business of Emami Ltd grew by 11.5 per cent during the quarter and by 16.0 per cent in H1FY16. MENAP region performed well led by robust growth in GCC region. Most of our Power Brands led by Navratna and Fair and Handsome have performed very well and increased their market shares in the overseas markets.
The company focuses on aggressive marketing powered by celebrity endorsements like Amitabh Bachchan, Shah Rukh Khan, Hrithik Roshan, Kareena Kapoor Khan, Kangana Ranaut, Yami Gautam, Juhi Chawla, Shruti Haasan, Bipasha Basu, Sonakshi Sinha, Mahendra Singh Dhoni, Mary Kom, Saina Nehwal, Sushil Kumar, Gautam Gambhir among others.
- BoroPlus Antiseptic Cream came up with a new star studded TV commercial produced by Rajkumar Hirani, bringing in superstars Amitabh Bachchan and Kangana Ranaut for the first time together onscreen.
- Shruti Haasan comes on board to endorse Kesh King Ayurvedic Medicinal Oil for Southern markets and Kesh King Shampoo nationally.
- Fair and Handsome came up with a high octane digital campaign #HandsomeLife for the aspirational young men to celebrate handsomeness in association with the brand endorser Hrithik Roshan.
- Fair and Handsome partnered with FC Pune City as its Lead Sponsor for ISL 2015. It is the Only celebrity brand endorsed by ISL owners to come on board as a team’s lead sponsor
- Launched Zandu Gel Balm Junior, the first ever gel based pain balm for kids in India
- Launched Zandu Nityam Laxative Tablet, a brand extension of Zandu Nityam Churna.