Emami Q3 Results: Net Profit Rises 8% The macroeconomic environment during the quarter presented a mixed bag of challenges and opportunities
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Fast-moving consumer goods company, Emami, reported a 8 per cent year-on-year(Y-o-Y) increase in net profit for the third quarter at INR 279 crore, compared with INR 260.7 crore in the same period last year. Although 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.
Despite these macroeconomic headwinds, the company reported a robust growth of 9 per cent in its core domestic business, driven by a healthy volume growth of 6 per cent. 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 achieved growth in the low single digits.
On the distribution front, the company's organized channels—modern trade, e-Commerce, and institutional sales—continued their robust performance, now contributing 28.6 per cent of the domestic business, an increase of 160 basis points in Q3. These channels demonstrated nearly double the growth rate compared to overall business.
Harsha V Agarwal, vice chairman and MD, Emami Limited said, "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."
Gross margins expanded by 150 basis points to 70.3 per cent. EBITDA grew by 8 per cent to INR339 crore, with margins expanding by 70 basis points and profit after tax increased by 8 per cent to INR 279 crore.
"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," he added.
