Emami reveals 39 percent surge in A&P spends in Q4FY24; profit rises 3.6 percent to Rs 147 crore

The Kolkata-based FMCG major posted volume-led profit growth in Q4 and anticipates rural market recovery, going forward. Its revenue from operations for the quarter was Rs 891.24 crore, up 6.61 percent from Rs 835.95 crore in the same quarter last year.

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  • Storyboard18,
| May 30, 2024 , 10:30 am
According to Emami, brands like Navratna, Dermicool, and the Healthcare range and Pain Management range performed well in Q2
According to Emami, brands like Navratna, Dermicool, and the Healthcare range and Pain Management range performed well in Q2

The homegrown FMCG major Emami has reported an increase of 3.62 percent in its Profit After Tax (PAT) to Rs 146.75 crore for the fourth quarter that ended on March 31, 2024. According to the company’s regulatory filing, its PAT for the same quarter of the previous fiscal stood at Rs 141.62 crore.

Having achieved volume-led profit growth, Emami’s revenue from operations for the quarter under review was Rs 891.24 crore— compared to 6.61 percent from Rs 835.95 crore in the same quarter last year. In the quarter, EBIDTA at ₹211 crore grew by 6%, despite strong investments behind brands which led to a 39% surge in A&P spends.

The domestic business grew by 8 percent with volume growth of 6.4% for the company, where major brands like BoroPlus, Pain Management range, Healthcare range, 7 Oils in One, The Man Company and Brillare performed strongly during the quarter. However, extended winters led Navratna and Dermicool to post low single-digit growth.

During the quarter, the company launched Nature F1rst healthy radiance range under the Fair and Handsome brand and also introduced four digital first launches under the Zandu Care D2C portal.

Its international business grew by 9 percent in constant currency and 8% in INR terms driven primarily by the MENA region. Overall, it launched more than 50 products with the majority being digital-first.

“The company remains optimistic about future growth, supported by a favourable economic landscape, forecast of a normal monsoon, anticipated rural market recovery, government initiatives, and promising macroeconomic factors, all contributing to a confident outlook for sustained positive performance,” it said.

Harsha V Agarwal, Vice Chairman and Managing Director, Emami said. “We expect our core brands to deliver a healthy all-round growth going forward, aided by recovery in rural, a strong summer and forecast of a good monsoon. Our strategic investments in innovative start-ups are expected to continue their robust growth and improve their profitability.”

Mohan Goenka, Vice Chairman and Whole-Time Director, Emami said, “Our enhanced investment in A&P to strengthen brand visibility and strategic distribution initiatives like Project Khoj and other digital interventions are expected to provide impetus to our sales going forward. Our outlook is positive for the near and mid-term and we aim to deliver healthy growth supported by favourable operating environment.”

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