Kolkata: The Board of Directors of Emami Limited met on Wednesday, October 25, 2017 to consider the unaudited financial results of the company for the second quarter and half year ended September 30, 2017.
Despite a challenging business environment, the company reported steady growth during the quarter delivering a robust volume growth of 10% with total revenues (including GST/ VAT) growing by 14%. While the domestic business grew by 14%, International business also grew by 22%. Destocking in CSD and wholesale channel disruption however continues.
In the Domestic Business, BoroPlus, Navratna, Pain Management Range and Male Grooming range grew in double digits. During the quarter the company continued its focus on innovation by launching Fair and Handsome Laser 12 Advanced Whitening and Multi Benefit Cream, a premium whitening face cream for men with 12 power benefits. The company also launched Diamond Shine Luxury Crème Hair Colour, an ammonia free hair colour enriched with Diamond Serum and 11 Ayurvedic Herbs & Conditioners and BoroPlus Zero Oil Zero Pimple Face Wash, enriched with Multani Mitti and Neem extracts to stop recurrence of pimples. Bollywood celebrities- Hrithik Roshan, Shilpa Shetty and Kriti Sanon have been roped in to promote these new launches respectively.
On the financial front, EBIDTA at ₹ 201 cr grew by 15% and PAT at ₹ 99 cr grew by 49%. Gross margins stood at 67.3%, EBIDTA margins at 32.1% and PAT margins at 15.7% in Q2FY18.
Although global business environment remained volatile and challenging, International Business delivered a growth of 22% in Q2FY18 led by SAARC, CIS and Africa. Further, Emami continued to gain market shares across majority of its portfolio.
Mr Mohan Goenka, Director, Emami Limited said:
“After a challenging Q1 faced with GST apprehensions resulting in substantial wholesale destocking, in the second quarter, we have recovered significantly. Both topline and bottomline have registered handsome growth at around 14% and 49% respectively. Post GST, the wholesale channels are yet to recover completely from the impact, which we expect to improve in the 2nd half of the year. International business is also back on track riding on the base effect of last year’s performance. The SAARC regions and Africa did particularly well.”
Mr Harsha V Agarwal, Director, Emami Limited said:
“The overall industry environment is showing the early signs of recovery with stabilisation of the post GST scenario. Amidst this, all our brands have also performed quite satisfactorily in the 2nd quarter of this fiscal. BoroPlus, Navratna along with the Pain Management and Male Grooming range have registered good growth in this quarter. The overall performance of the healthcare portfolio has been satisfactory. This quarter, we have launched some innovative and interesting products like BoroPlus Zero Oil Zero Pimple Facewash, Emami Diamond Shine Crème Hair Colour and Fair and Handsome Laser 12. We expect these new launches to receive encouraging consumer response in the days ahead.”