The Company has increased its direct reach to 9.15 lac outlets increasing the reach by 65000 outlets.
The Board of Directors of Emami Limited met on Tuesday, 30th October 2018 to consider the unaudited financial results of the company for the quarter and half year ended 30th September 2018.
The first and second quarter of previous year were impacted due to destocking and restocking on account of GST implementation. Half yearly performance is therefore a better indicator as it neutralizes the impact of both destocking and restocking in the base year.
The company closed the half year with a revenue of â‚¹ 1,242 cr with a like to like growth of 9%. Despite continued challenges like erratic monsoons, transport strike and CSD channel disruption, Domestic business grew by 9% with major brands like Navratna, Healthcare range, Male Grooming range, Pain Management Range and 7 Oils in One performing well in H1FY19. Market share gains continued for key brands.
Company’s gross margins at 67.4% grew by 30 bps, despite increasing prices of material costs. EBIDTA grew by 11% and Cash Profit grew by 10%. EBIDTA margins at 25.2% grew by 110 bps and Cash Profit margins at 22.1% grew by 70 bps.
Mohan Goenka, Director, Emami Limited said: “Our growth in the first half of FY19 has been modest. Rising input cost of key raw materials has been a challenge. Wholesale recovery has been moderate and is expected to pickup further.
While Modern Trade performance has been good, rural too is picking up. With erratic monsoon and winter being slightly delayed, offtakes were affected. However, our outlook is positive and we expect to close FY19 in double digits.”
Harsha V Agarwal, Director, Emami Limited said: “Our male grooming range has performed well during the quarter. Younger brands and brand extensions like Fair and Handsome Face Wash, HE Deo and 7 Oils-in-One have contributed significantly during this period. We are very positive on the prospects of Kesh King post its recent rejuvenation. All our Power Brands have continued to gain market shares.
During the period, the Company has increased its direct reach to 9.15 lac outlets, increasing the reach by ~65000 outlets.”