Emami Reports 6% Q2 revenue growth, ventures into Juice Category

Emami Limited has reported a revenue of Rs 865 crores, a growth of 6%, in the second quarter period. The company informed that it has demonstrated remarkable resilience in the second quarter and half-year ending on 30th September 2023, overcoming challenges such as poor monsoons, food inflation, and subdued demand in rural markets.

The Domestic Business witnessed a commendable 4% growth with a volume growth of 2%, driven by channels catering to urban markets such as Modern Trade and E-commerce. The international business also expanded by an impressive 12% during the quarter, delivering a constant currency growth of 16%, primarily attributed to robust performances in the SAARC and MENAP regions.

The Company unveiled a range of innovative digital-first products in the domestic business during the quarter, including Glycerine bathing bars under the BoroPlus range, an organic onion hair mask under the Kesh King brand and introduction of 10 new products on the Zanducare portal. The Company also launched three new products under the Creme 21 brand in the international markets. Additionally, the Company made its foray into the juice category with “AloFrut” through strategic investment in Axiom Ayurveda Pvt Ltd and its subsidiaries/associations by acquiring 26% equity stake. Axiom markets beverage products under the brand “AloFrut”, which are most refreshing and healthy fusion of aloe vera pulp and fruit blends.

Leveraging lower raw material costs and judicious price hikes, the quarter saw a remarkable expansion in Gross margins by 350 basis points, reaching 70.1%. EBIDTA soared to ₹234 crore, showcasing an impressive 20% growth, with margins at 27.0%, an increase of 300 basis points. In the first half of FY24, the Company achieved a 7% growth in Revenues, expanded Gross Margins by 290 basis points, which led to a 15% surge in EBIDTA, with margins reaching 25.1% - expanding by 180 basis points. Moreover, the Profit for the period surged to ₹316 crore, reflecting a strong 23% growth.

The Board of Directors declared an interim dividend of 400%, amounting to ₹4 per share for FY24, in recognition of the Company's performance, thereby rewarding the shareholders for their support and trust. The Company's ability to navigate challenges and achieve significant growth and profitability signals a promising trajectory and highlights its commitment to innovation, strategic partnerships, and value creation for its stakeholders.

Harsha V Agarwal, Vice Chairman and Managing Director, Emami Limited said: “In this dynamic and challenging environment, our results exemplify our dedication to growth and innovation, marked by a good increase in both volumes and revenues. Strong performance by both Modern Trade and e-commerce has led to a decent revenue growth of 6% and an impressive constant currency growth of 16% in our international business during this quarter.

Our recent expansion into the juice category, marked by a strategic 26% investment in Axiom Ayurveda (AloFrut), aligns with our vision to diversify into high growth segment where we are currently not present. These strategic entries in diverse categories act as a launch pad for future growth of the company.” Mohan Goenka, Vice Chairman and Whole-Time Director, Emami Limited, said: "I'm delighted to announce our Company's positive performance in Q2FY24.

Despite macroeconomic challenges, we achieved a 6% revenue growth. Notably, our gross margins expanded by 350 basis points, showcasing our operational excellence. EBIDTA soared by 20%, with margins expanding by 300 basis points, underscoring our dedication to value and quality. These achievements affirm our commitment to delivering value and quality to our consumers, partners and stakeholders. With the Government's support creating favorable conditions in rural markets, we're poised for a strong second half, amplifying our market presence.”