FMCG major Emami aims decent margin in FY22 despite hike in input cost

Homegrown FMCG major Emami has said it intends to maintain decent margins in FY22 on the back of stringent cost control and volume led growth.

Presently, FMCG companies are facing inflationary pressure on the raw material inputs and some of them have even increased the prices to maintain margins.

The Kolkata-based company would try to absorb input costs through higher operational efficiency and judicious price increases, said the latest annual report of the company.

Going forward, the company intends to maintain decent margins on the back of stringent cost control and volume-led growth. Increase in raw material costs could be absorbed through higher operational efficiency and judicious price increases, said Emami over the outlook for FY22.

In FY21, Emami's performance was impacted due to the pandemic-induced lockdown.

However, margins increased with 8 per cent sales growth due to stringent cost control and benign raw material prices, it added.

According to Emami, it enjoys one of the highest margins in India's FMCG companies, generating an attractive corpus for reinvestment.

The company is debt-free despite having invested more than Rs 2,600 crore in acquisitions over 12 years, it added.

In FY 21, Emami, which owns some power brands such as Navratna, Boro Plus, Kesh King, Men's Fairness Cream, had a revenue of Rs 2,881 crore, up 8.51 per cent from a year-ago period.

While its EBITDA for the financial year ended on March 31, 2021, was up 27.79 per cent to Rs 883 crore.

Its EBIDTA margin was at 30.7 per cent in FY21 as against 26 per cent of FY20.