Emami reports strong second quarter results
today Oct 26, 2017
The health and beauty business Emami has reported ten percent total volume growth for the second quarter of the 2018 financial year.
Despite a challenging economic climate, Emami Limited reveled positive financial results for the most recent quarter. As well as ten percent total volume growth, the business also experienced 14 percent growth total revenues. This, however, includes VAT and the new Goods and Services Tax (GST) so some of that growth could be due to an increase in price due to tax hikes.
The brand's gross profit margins stood at 67.3 percent and the Profit After Tax (PAT) margin was 15.7 percent as PAT totalled 99 crore rupees (approximately 14.8 million dollars) which was a rise of 49 percent. For earnings before interest, tax, depreciation and amortisation (EBITDA), the margin stood at 32.1 percent with a total of 201 crore rupees (approximately 30.2 million dollars) which was 15 percent more than last quarter.
Emami also reported 14 percent growth in domestic business and 22 percent growth in international business. One of the best performing product categories was male grooming and some of the brands that Emami own include Fair and Handsome and HE Deodorants. The previous quarter saw Emami launching several new products for their Fair and Handsome brand as well as other subsidiaries. These product launches were accompanied by advertising campaigns including Bollywood celebrities Hrithik Roshan, Shilpa Shetty, and Kriti Sanon and this exposure won sales.
Emami’s Director, Mohan Goenka, said about the results: “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 per cent and 49 per centre-spectively. 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.”
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