Homegrown FMCG firm Emami Ltd on Friday reported 6.55 per cent decline in June quarter profit after tax (PAT) at Rs 72.69 crore.
The company had posted a PAT of Rs 77.79 crore in April-June 2021-22, Emami said in a regulatory filing.
However, revenue from operations was up 17.75 per cent to Rs 778.29 crore during the quarter under review as against Rs 660.95 crore in the year-ago period.
“Unprecedented inflationary headwinds continued to impact the FMCG sector leading to softening of consumer sentiment across urban and rural markets, resulting in lower margins during the quarter,” said Emami in its earning statement.
In the quarter, margins contracted by 340 basis points due to inflationary pressures combined with an unfavourable portfolio mix due to extraordinary high sales of pain management products last year, it said.
Despite the overall challenging macro environment, Emami’s consolidated revenues grew “on a high base of 37 per cent growth in the previous year with 2 per cent EBIDTA growth”.
In June quarter, Emami’s domestic net sales grew 13 per cent with volume growth of 8 per cent.
“The quarter was dominated by a strong performance of major brands like Navratna, Kesh King and Fair and Handsome. However pain management and healthcare range, particularly the immunity portfolio, witnessed corrections on account of exceptional growth in the same quarter last year due to the 2nd wave of the pandemic,” it said.
Its healthcare range and the acquired brand Dermicool, and other brands witnessed growth of 30 per cent in the domestic business, said Emami.
During the quarter, both modern trade and e-commerce continued to perform well and posted a growth of 42 per cent and 55 per cent, respectively.
“In Q1FY23, the contribution of modern trade and e-commerce channel increased to 15.8 per cent of domestic revenues,” it said.
Revenue from the canteen stores department (CSD) sales also grew 23 per cent.
Its international business grew 45 per cent over the previous year led by key geographies like the Middle East and North Africa (MENA) and SAARC.
“All major brands performed well in the international markets,” it said Total expenses were at Rs 778.29 crore in the quarter as against Rs 491.24 crore.
Meanwhile, in a separate filing, Emami said it board in a meeting held on Friday appointed Anand Rathi, Anjani Agrawal, Anjan Chatterjee, Avani Davda and Rajiv Khaitan as independent directors of the company, which will be subject to shareholders’ approval.
Shares of Emami Ltd on Friday settled at Rs 450.05 apiece, down 0.98 per cent on the BSE. PTI KRH ANU ANU
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