Despite a Dip In Consumer Spending, Emami's Profit Up By 19% in Q2FY25 For H2 FY25, we expect stronger offtakes driven by improved rural demand and stable seasons ahead, says Harsha V Agarwal, vice chairman and MD, Emami Limited
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Although persistent high food inflation continued to weigh on mass consumer spending and global political unrest created some temporary disruptions, Emami Limited posted a profit after tax (PAT) of INR 213 crore in Q2FY25, which is a 19 per cent increase compared with the same period a year ago. In the quarter EBITDA grew by 7 per cent to INR 250 crore, with margins expanding by 110 basis points to 28.1 per cent. Organized channels like modern trade, e-commerce and institutional sales now contribute 26.6 per cent to the domestic business.
"We are pleased to close the first half of the year with strong performance, achieving 6 per cent revenue growth, 10 per cent EBITDA growth, and a 16 per cent profit increase despite macroeconomic challenges. For H2 FY25, we expect stronger offtakes driven by improved rural demand and stable seasons ahead," said Harsha V Agarwal, vice chairman and MD, Emami Limited.
The company reported overall revenue of INR 891 crore, which grew by 3 per cent with domestic business growing by 2.6 per cent. Major brands Navratna, Dermicool and healthcare range and pain management range performed well. At a macro level, the quarter brought its share of challenges, with demand trends aligning closely with those seen in the first quarter.
The company continued to drive its innovation pipeline forward, launching 11 new products this quarter. In the healthcare segment, new additions to the Zanducare portal included Zandu Daily Health Super Greens, Zandu Dirghayuprash, and Zandu Hair Growth Serum. Additionally, the company relaunched BoroPlus Soft, with a new look.
The company's international business demonstrated resilience amid geopolitical challenges, achieving a 12 per cent sales growth excluding Bangladesh. Overall, the international business expanded by 6 per cent in both constant currency and INR terms during Q2, driven by strong performance in the MENA region.
"Our international business demonstrated resilience despite geopolitical challenges, delivering double-digit growth, excluding Bangladesh. Besides good performance of our existing brands, strategic investments and the recent launch of 11 new domestic products are set to boost consumer confidence and drive double-digit revenue growth in the second half," he added
"We remain committed to achieving high single-digit revenue growth and double-digit EBITDA growth for FY25. With a favourable winter forecast, we expect strong performance from our winter portfolio," said Mohan Goenka, vice chairman and whole-time director, Emami Limited.
