EMAMI REPORTS ANNUAL REVENUE AND EBIDTA GROWTH OF 6% AND 11% DESPITE CHALLENGING SECOND HALF

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EMAMI REPORTS ANNUAL REVENUE AND EBIDTA GROWTH OF 6% AND 11% DESPITE CHALLENGING SECOND HALF 

Kolkata, May 4th 2017: The Board of Directors of Emami Limited met on Thursday, May 4, 2017 to consider the audited financial results of the company for the fourth quarter and FY17.

Despite disruption in trade channels post demonetization, Domestic revenues at 2,142 cr grew by 10% in FY17 and by 3% in Q4FY17 with revenues at 487 cr.

Due to global economic slowdown and geopolitical issues in the overseas markets, consolidated revenues at ₹ 2,533 cr grew by 6% and EBIDTA at ₹ 759 cr grew by 11% in FY17. However, consolidated revenues at ₹ 578 cr and EBIDTA at ₹ 178 cr declined by 4% and 5% respectively during the quarter.

Power brands like BoroPlus, Navratna, Kesh King and Balms performed well during the year. Further, new launches such as Fair & Handsome Face Wash, 7 Oils in One and HE Deodorants continued to grow at a rapid pace, performed exceptionally well to make a strong impact in a cluttered market. Emami continued its focus on innovations with launch of “HE On the Go Face Wash”, a revolutionary product which lets one wash their face without the use of water in March 2017.

Navratna Cool Oil, Fair & Handsome Cream and Kesh King further increased their market share to 61.1%, 60.3% and 34.0% respectively. Boroplus and Balms (Zandu and Mentho Plus) continued to maintain leadership with Market Shares of 70.3% and 59.4% respectively.

In FY17, Gross margins at 65.5% improved by 100 basis points year-on-year and EBITDA margins grew by 130 basis points at 30.0%.

INTERNATIONAL BUSINESS

Globally, business environment continued to be volatile and challenging. Worsening geopolitical situation in overseas markets impacted the sales adversely. Emami, however continued to gain market shares across major portfolio.

NEW MANUFACTURING UNIT 

The company has commenced manufacturing at its new manufacturing facility at Pacharia, Guwahati in Feb’17. The total planned outlay for the project is ₹ 300 cr.

Mr Mohan Goenka, Director, Emami Limited said:

“This quarter, our domestic sales growth at 3% has been relatively satisfactory which has taken the business growth up to 6% in FY17.  Last quarter, liquidity crunch and sales channel disruption impacted the offtake of some of our brands in the domestic market. In face of this, we have initiated a massive distribution restructuring to reduce our dependence on the wholesale network and go for direct retail. This year we have been successful to garner a direct reach of 7.3 lac outlets from last year’s network of 6.4 lacs outlets which we target to scale up to a coverage of 8 lacs outlets by the end of next financial year. International business scenario, with an exception of Bangladesh and SAARC countries, continues to be challenging due to certain geo-political situation particularly in Middle East and Africa.”

Mr Harsha V Agarwal, Director, Emami Limited said:

“Notwithstanding cautious market sentiment post the demonetization drive, we are happy to announce a modest quarter performance as compared to the overall muted industry environment.  While all our Power brands performed satisfactorily in this quarter, new brands like HE have doubled its revenue growth. We are bullish on HE becoming a major force in the men’s grooming segment and as part of expanding the brand portfolio, we have just launched India’s first waterless facewash – ‘HE On The Go’, a category creator.  We will continue investing in both our power brands and newer brands based on their growth potential.

Commissioning of the first phase of our new plant in Pacharia, Assam is another major highlight for the Company in this quarter.   On final commissioning of the installed annual production capacity of 90,000 MT, the Pacharia plant is expected to be one of the top 5 plants in this category in the country.”

AWARDS

Awarded the “CSR Leadership Award”– for “Support & Improvement in Quality of Education” at the World CSR Congress, in partnership with ABP News.

Ranked at 291st position (PY: 326) among 1000 domestic companies in the BS 1000 ranking by Business Standard.

Ranked at the 90th position in the FE 1000 2016 ranking (in terms of Market Capitalization) by Financial Express.

About Emami Ltd

Emami: (NSE:  Emami Ltd, BSE: 531162)  Emami Ltd, founded in 1974, is one of India’s leading FMCG Companies engaged in manufacturing & marketing of personal care & healthcare products.

With over 300 diverse products, Emami’s portfolio includes trusted power brands like Navratna, BoroPlus, Fair & Handsome, Zandu Balm & Mentho Plus.   In 2015, the Company acquired the business of ‘Kesh King’ and forayed into the Ayurvedic hair & scalp care segment.    Emami products are available in over 4 million retail outlets across India through its network of 3,200+ distributors and its global footprint spans over 60 countries including GCC, Europe, Africa, CIS countries & the SAARC.

Emami has maintained a CAGR turnover of 13% over the last 5 years through its consistent business performance.   Emami is well known for its aggressive marketing powered by celebrity endorsements like Amitabh Bachchan, Shah Rukh Khan, Hrithik Roshan, Shahid Kapoor, Madhuri Dixit, Kareena Kapoor Khan, Kangana Ranaut, Yami Gautam, Juhi Chawla, Shruti Haasan, Shilpa Shetty, Bipasha Basu, Sonakshi Sinha, Parineeti Chopra, Mahendra Singh Dhoni, Sourav Ganguly, Mary Kom, Saina Nehwal, Sushil Kumar, Sania Mirza etc over the years.

With a market cap of around Rs. 24,000 cr, Emami Ltd is the flagship Company of the diversified Emami Group.

Please visit www.emamltd.in for further information.

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Antara Tripathy M.Sc., B.Ed. by qualification and bring 15 years of media reporting experience.. Coverred many illustarted events like, G20, ICC,MCCI,British High Commission, Bangladesh etc. She took over from the founder Editor of IBG NEWS Suman Munshi (15/Mar/2012- 09/Aug/2018 and October 2020 to 13 June 2023).
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