Emami profit rises 10% to Rs 150.6 Cr in June quarter, revenue up 9.7%

Homegrown FMCG major Emami Ltd on Thursday reported a 10.13% rise in profit after tax to Rs 150.6 crore for the April-June quarter of 2024-25 led by volume growth in the domestic market and expansion in margins.

The company had posted a PAT of Rs 136.75 crore in the April-June quarter a year ago, according to a regulatory filing.

Emami's revenue from operations was up 9.73% to Rs 906.07 crore during the quarter under review. It was Rs 825.66 crore in the corresponding quarter a year ago.

The company's total expenses were Rs 689.56 crore, up 8.4% in the June quarter of FY24.

Its total income, which includes other revenue, rose 9.9% during the period under review to Rs 916.53 crore.

"Domestic Business also grew by 10% with a healthy volume growth of 8.7%," Emami said in its earning statement.

Modern trade, ecommerce, and institutional channels continued to post strong growth, while general trade also rebounded to positive territory, it added.

"In Q1FY25, gross margins at 67.7% expanded by 230 basis points. EBIDTA at Rs 216 crore grew strongly by 14%, despite strong investments behind brands which led to a 21% surge in A&P spends," it added.

The quarter witnessed sequential improvement in demand trends with slight green shoots witnessed in rural demand.

"However, increasing food inflation continued to impact discretionary consumption. The country witnessed one of its hottest summers, boosting a healthy demand for summer products but dampening sales of non-summer products and reducing out-of-home consumption," it said.

Emami's international business grew by 11% in constant currency and by 10% in INR terms, despite geopolitical crisis and currency depreciations in key geographies.

"The performance was led by double digit growths in MENA and SAARC regions," it said.

Commenting on the results, Emami Vice Chairman and Whole-Time Director Mohan Goenka said: "Our sales grew in double digits, our profits grew even faster with a 14% growth in EBITDA, despite 21% higher investments behind our brands. Our EBITDA margins also improved by 90 basis points."

Emami continues to focus on our strategy to improve our distribution, invest aggressively in key brands, and drive market share growth across its portfolio.

"With the forecast of a normal monsoon and the government's continued focus on macro-economic growth, we expect growth to accelerate in the coming months," he said.

Shares of Emami Ltd closed 0.67% higher at Rs 823.10 apiece on the BSE.