FMCG major Emami Ltd Q2 net profit climbs 19% to Rs 213 crore

Kolkata: FMCG major Emami Ltd on Thursday reported a 19 per cent year-on-year increase in its net profit for the second quarter ended September 2024 reaching Rs 213 crore, driven by improved margins and steady growth in both domestic and international markets.

Revenue from operations during the quarter rose by 3 per cent to Rs 891 crore, with the domestic segment advancing by 2.6 per cent and international business growing 6 per cent, excluding a 12 per cent rise outside of Bangladesh, the company said in a statement.

Gross margins for the quarter improved by 60 basis points to 70.7 per cent, reflecting strategic cost management. Earnings before interest, depreciation, tax, and amortisation (EBITDA) reached Rs 250 crore, up 7 per cent year-on-year, while EBITDA margins rose by 110 basis points to 28.1 per cent.

The company during the quarter raised its stake in Helios Lifestyle, the maker of The Man Company brand, from 50.4 per cent to 98.3 per cent, reinforcing its focus on expanding its men's grooming portfolio.

The board declared an interim dividend of 400 per cent, or Rs 4 per share, for FY25.

Emami informed that continued demand challenges in India, with high food inflation impacting mass consumer spending. Internationally, political unrest in key markets, including Bangladesh, posed temporary disruptions.

Despite these pressures, Emami continued to expand its innovation pipeline, launching 11 new products during the quarter.

"Organised channels like modern trade, e-commerce, and institutional sales now contribute 26.6 per cent to our domestic business, a 190-basis point increase in the first half. We remain committed to achieving high single-digit revenue growth and double-digit EBITDA growth for FY'25," Mohan Goenka, vice chairman and whole-time director of Emami said.