Dear Valued Owners
The year 2018-19 saw your company deliver revenue growth of 12.85% with an operatingprofit growth of 12.12% (Profit before tax and exceptional item) and a PAT growth of22.73%. The OTC business grew by a very respectable 18.87% which drove the double-digitgrowth in profitability. Your team executed the business plan well in spite of challengesfrom material cost escalation and hangover from GST issues of the prior year.
Key highlights of the year in review are as follows:
Group revenue growth from Rs. 249.27cr to Rs. 281.31cr; a growth of 12.85%
OTC revenue growth from Rs. 215.30 cr to Rs. 255.93 cr; a growth of 18.87%
The pain business grew by double digits led by Roll on format
The roll on format touched Rs. 35 cr in revenue.
Comfy sanitary napkin brand grew revenue from Rs. 19.62 cr to Rs. 35.30 cr
The brand Comfy now enjoys a volume market share of 1.9% pan India.
The company grew profits by double digits in spite of a Gross margin drop of 400basis points. The drop was due to all time high menthol and essential oil prices. Theoperating profit impact due to the price inflation is to the tune of Rs. 13.49 cr!
At Amrutanjan we believe in consumer led growth built on the twin pillars ofoperational excellence and strong execution. We were able to introduce a completelyrevamped body pain product range with positive market acceptance. We also launched anorange flavored ORS drink under the Electro+ brand. The sanitary napkin business saw thelaunch of a longer pad offering (Comfy XL) along with a family pack(20 units pack). Theselaunches are testament to the execution ability of the organization especially acrossvaried categories. We have plans to launch premium range of sanitary pads in the 1stquarter of FY 20. We will continue to introduce new variants in the categories we operateto drive market share growth.
I have written much about the need to expand distribution if we are to realize ourdreams of growing the organization to a larger scale. On that front the Head ache Roll onand Comfy sanitary napkin saw sizeable growths in outlet additions. We have also openedexclusive distributors across town classes thereby increasing our direct distributionreach that would benefit all brands.
I am also proud to share the fact that we opened our first online exclusive store onAmazon. Our products are now available in all the leading E commerce portals therebyincreasing the reach of our product range.
I would like to state another matter very proudly which supports the "Make inIndia" vision of our Hon. Prime Minister; Our Comfy brand success has revived thefortunes of a rather dormant factory in South of Tamil Nadu thereby creating employment inthe towns nearby. When some studies show that India's share of manufacturing GDP hasremain unchanged since 1990s all of us "wealth creators" (in the words of ourHon. PM) have a role to play.
We continue to support the communities we do business in through our CSR initiativesand also by practicing environmentally friendly business practices. We wish to reduce ourplastic and water consumption footprint by improving our product and process designs.
S. Sambhu Prasad