Home Food Service Emami Q1 PAT down 7% at Rs 73 cr

Emami Q1 PAT down 7% at Rs 73 cr

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Homegrown FMCG firm Emami Ltd on Friday reported 6.55 % 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 % 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.

Despite the overall challenging macro environment, Emami’s consolidated revenues grew “on a high base of 37 % growth in the previous year with 2 % EBIDTA growth”.

In the June quarter, Emami’s domestic net sales grew 13 % with volume growth of 8 %.

“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 % 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 % and 55 %, respectively.

“In Q1FY23, the contribution of modern trade and e-commerce channel increased to 15.8 % of domestic revenues,” it said.

Revenue from the canteen stores department (CSD) sales also grew 23 %.

Its international business grew 45 % 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.

(PTI)