Emami records 20.4% growth in Q2

The Board of Directors of Emami Limited declared that the company having a turnover at Rs 490 crore in the second quarter grew by 20.4%, EBIDTA at Rs 113 crore grew by 29.6% and PAT at Rs 93 crore grew by 16.0% over the corresponding quarter in the previous year.

For the first half of the year, turnover at Rs 971 crore grew by 22.9%, EBIDTA at Rs. 188 crore grew by 28.4% and PAT at Rs 164 crore grew by 16.3% respectively over the corresponding half year of the previous year.

The company stated in its release that "domestic business in the second quarter grew at a robust pace with a strong top-line growth of 18.4%. A good summer coupled with robust performance of the Power Brands and new launches attributed to this top-line growth. New launches such as'HE' Deodorant, Fair and Handsome Instant Fairness Facewash, Emami 7 Oils in One Damage Control Hair Oil and Zandu Balm Ultra Power continued to be active contributors to the growth during this quarter. The company continued to spend considerably on both advertisement and brand building during the quarter to market its products aggressively. Despite the high increase in spends, the company's EBIDTA during the quarter rose by 29.6%, bettering industry average.”

Most of the Power Brands witnessed handsome growth as a result of aggressive marketing efforts. Strategic communication through both ATL and BTL activities impacted the revenue growth chart positively. Navratna Oil and Cool Talcum Powder, Zandu Balm, Mentho Plus Balm, Fair & Handsome and Zandu HCD Range grew in healthy double digits.

As per AC Nielsen data, the company's market shares across key categories continued to grow this quarter. Navratna Cooling Oil gained 940 bps with a volume market shares at 67.6%. With a market share of 56.9%, Balms portfolio gained by 70bps. Fair & Handsome gained 40bps market share with a 65.2% market share.

International business also continued to grow strongly by 33% during the quarter against the corresponding quarter in FY14. The growth was led by Bangladesh and neighbouring SAARC countries, and CIS countries. For the first half of the year, International Business grew by around 57%.

Mohan Goenka, Director, Emami Limited, said, "The company has performed remarkably well during the quarter in both domestic and international market. Strong performances by our power brands in key categories ensured a healthy top-line growth of 20.4% despite the market facing low growth across categories. Our international business continues to grow from strength to strength. Adoption of correctional measures, some definite consolidation in our international business and robust performance by all our power brands led to this robust growth. In domestic market, both modern and general trade have continued to respond to positive consumer sentiments.”

Harsha V Agarwal, Director, Emami Limited, said, "Our new launches, including HE Deo, have been received extremely well by our consumers which is positively encouraging. The products have started making significant contribution in generating revenues. We have very recently rolled out SHE Comfort brand of Sanitary Napkin on an all India basis and are encouraged by the initial market response. Sanitary napkin is a low penetrated category and we see a huge potential for growth of our brand. Our Health Care Division has also achieved good growth. We plan to launch many new products in near future from the Zandu stable and will continue to invest in growing our existing portfolio.”