Emami reports annual revenue and EBIDTA growth of 6% and 11%

Despite disruption in trade channels post demonetization, domestic revenues were reported at ₹ 2,142 cr grew by 10% in FY17 and by 3% in Q4FY17 with revenues at ₹ 487 cr.

Due to global economic slowdown and geopolitical issues in the overseas markets, consolidated revenues at ₹ 2,533 cr grew by 6% and EBIDTA at ₹ 759 cr grew by 11% in FY17.

However, consolidated revenues at ₹ 578 cr and EBIDTA at ₹ 178 cr declined by 4% and 5% respectively during the quarter.

"Power brands like BoroPlus, Navratna, Kesh King and Balms performed well during the year. Further, new launches such as Fair & Handsome Face Wash, 7 Oils in One and HE Deodorants continued to grow at a rapid pace, performed exceptionally well to make a strong impact in a cluttered market. Emami continued its focus on innovations with launch of “HE On the Go Face Wash”, a revolutionary product which lets one wash their face without the use of water in March 2017," the company said in a statement.

Navratna Cool Oil, Fair & Handsome Cream and Kesh King further increased their market share to 61.1%, 60.3% and 34.0% respectively. Boroplus and Balms (Zandu and Mentho Plus) continued to maintain leadership with Market Shares of 70.3% and 59.4% respectively.

In FY17, Gross margins at 65.5% improved by 100 basis points year-on-year and EBITDA margins grew by 130 basis points at 30.0%.

Globally, business environment continued to be volatile and challenging. Worsening geopolitical situation in overseas markets impacted the sales adversely. Emami, however continued to gain market shares across major portfolio.

The company has commenced manufacturing at its new manufacturing facility at Pacharia, Guwahati in Feb’17. The total planned outlay for the project is ₹ 300 cr.

Mohan Goenka, Director, Emami Limited said: “This quarter, our domestic sales growth at 3% has been relatively satisfactory which has taken the business growth up to 6% in FY17.  Last quarter, liquidity crunch and sales channel disruption impacted the offtake of some of our brands in the domestic market. In face of this, we have initiated a massive distribution restructuring to reduce our dependence on the wholesale network and go for direct retail. This year we have been successful to garner a direct reach of 7.3 lac outlets from last year’s network of 6.4 lacs outlets which we target to scale up to a coverage of 8 lacs outlets by the end of next financial year. International business scenario, with an exception of Bangladesh and SAARC countries, continues to be challenging due to certain geo-political situation particularly in Middle East and Africa.”

Harsha V Agarwal, Director, Emami Limited said: “Notwithstanding cautious market sentiment post the demonetization drive, we are happy to announce a modest quarter performance as compared to the overall muted industry environment.  While all our Power brands performed satisfactorily in this quarter, new brands like HE have doubled its revenue growth. We are bullish on HE becoming a major force in the men’s grooming segment and as part of expanding the brand portfolio, we have just launched India’s first waterless facewash - ‘HE On The Go’, a category creator.  We will continue investing in both our power brands and newer brands based on their growth potential."

"Commissioning of the first phase of our new plant in Pacharia, Assam is another major highlight for the Company in this quarter.   On final commissioning of the installed annual production capacity of 90,000 MT, the Pacharia plant is expected to be one of the top 5 plants in this category in the country,” said he.