Kolkata: The Board of Directors of Emami Limited met on Thursday, 3rd May 2018 to consider the audited financial results of the company for the fourth quarter and financial year ended March 31st, 2018.
The company closed the quarter with a turnover of ₹ 617 cr with a like to like growth of 12%. Domestic business grew by 10% with major brands like Navratna, Pain Management Range, Male Grooming Range, Kesh King and 7 Oils in One performing well. Market share gains continued for key brands. Rural continued to outperform Urban markets promising a good growth trajectory going forward. During the quarter the company also launched BoroPlus Healthy White Fairness Cream, developed using saffron and orange peel extracts amongst 21 Ayurvedic herbs to repair skin damage and reveal visibly radiant and even toned skin.
On the financial front, EBIDTA at ₹ 173.3 crore declined by 3% due to aggressive spends on New Launches which increased by 3.2 times at ₹ 19.6 crore. PAT at ₹ 60.2 cr, however was impacted on account of writing off MAT Credit entitlement of ₹ 14.0 cr. Gross margins stood at 65.2% and EBIDTA margins at 28.1% in Q4FY18.
Although global business environment remained volatile and challenging, International Business delivered a growth of 37% in Q4FY18 led by SAARC and MENAP regions.
Forayed in the growing Professional Salon segment by making a strategic investment in Brillare Science Pvt Ltd(“Brillare”). Brillare offers premium hair & skin beauty products that are used and sold by experts in professional salons. All the products are based on natural ingredients.
Earlier in Q3FY18, Emami had acquired a strategic stake in “The Man Company”, an online male grooming company offering a head-to-toe range of premium men’s grooming products in Bath & Body, Beard management, Shaving & Perfumes category based on premium essential oils which are free of harmful chemicals.
Mr Mohan Goenka, Director, Emami Limited said:
“The year FY 17-18 has ended with a reasonably good Q4 registering a double digit growth of 12% on a Y-o-Y basis. Most of our brands have registered a good growth in this quarter. The consumption environment for the industry has overall been positive with rural business chartering the growth path. We have increased our direct reach to 8.5 lakh outlets, which will help us in reducing our dependency on wholesale channel. International business has also done well in this quarter by achieving a growth of 37%”
Mr Harsha V Agarwal, Director, Emami Limited said:
“While Q4 witnessed a good growth led by Navratna, Pain Management and new launches, we expect the momentum to continue in FY19. With GST stabilisation, normal monsoon expectation coupled with higher government spending, FMCG is poised for a good growth. Some of our new launches like Emami Diamond Shine Crème Hair Colour and Fair and Handsome Laser 12 etc. have been received quite well in the market. Strategic investment in upcoming growth segments through start-ups will help the company to grow further in years to come.”