Emami posts 19 per cent growth in first quarter of FY19
Emami Limited closed the first quarter of FY 2018-19 with a turnover of ₹ 614 crore with a like-to-like growth of 19 per cent.
Domestic business grew by 21 per cent 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 per cent grew by 140 bps. EBIDTA grew by 54 per cent and cash profit grew by 45 per cent. EBIDTA margins at 20.1 per cent grew by 520 bps and cash profit margins at 18.0 per cent grew by 390 bps.
Director at Emami Limited Mohan Goenka said: “We started the year FY19 with 19 per cent 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.”
Director at Emami Limited, Harsha V Agarwal, 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 per cent. Our way forward is to manage business strategically through innovation, prudent cost management and operational efficiency.”