Emami net profit rises 5% to Rs 220 cr in December quarter

Homegrown FMCG firm Emami on Thursday reported 5.05 per cent rise in December quarter net profit at Rs 219.52 crore as the company faced increase in prices of key raw material.

The company had logged a profit of Rs 208.96 crore during October-December 2020-21, Emami said in a regulatory filing.

Revenue from operations was up at Rs 971.85 crore during the quarter under review as against Rs 933.61 crore in the year-ago period.

"The quarter witnessed high inflation leading to a deceleration in consumer demand," said Emami in a post earning statement.

During the quarter, EBIDTA at Rs 342 crore was "flat over last year" despite gross margins at 67.4 per cent contracting by 300 basis points "due to inflation in key raw material prices".

Total expenses were at Rs 630.31 crore in the quarter under review as against Rs 593.42 crore.

Its domestic business grew 3 per cent year-on-year over a base of 16 per cent growth in previous year, translating into a 2-year compound annual growth rate (CAGR) of 9 per cent.

"Modern trade grew by 14 per cent and e-commerce continued its robust run growing by 75 per cent over previous year. In Q3FY22, the salience of these new age channels has increased to 14 per cent of domestic revenues," said Emami.

International Business grew 7 per cent year-on-year.

"It however grew by 16 per cent on a 2 year CAGR basis. Excluding sales of Immunity & Hygiene range, International Business grew by 14 per cent led by key geographies like Bangladesh & Sri Lanka in SAARC and other regions like Africa & Southeast Asia (SEA)," said Emami.

"We are satisfied with the performance achieved amidst chaos and lockdown that prevailed in some form or the other during the quarter. Various initiatives undertaken for expanding our reach have resulted in increase in rural penetration and improved distribution," Emami Director Mohan Goenka said.

Meanwhile, in a separate filing, Emami said its board in a meeting held on Thursday approved a buyback of shares up to a value of 10 per cent of the company's share capital and free reserves at a price not exceeding Rs 550 per share.

After the buyback, promoters' shares would increase to 54.21 per cent from 53.86 per cent.

In addition, the board has also declared a second interim dividend of 400 per cent, which is Rs 4 per share for 2021-22.

Shares of Emami Ltd on Thursday settled at Rs 498.50 apiece on BSE, down 1.98 per cent from the previous close.