Emami records growth of 18.4% during Q3

Emami Limited announced the turnover of the company in the third quarter which grew by 18.4 per cent at Rs. 692 crore, EBIDTA grew by 19.7 per cent  at Rs. 212 crore and PAT grew by 21.9 per cent at Rs 184 crore respectively over the corresponding quarter in previous year.
 
The third quarter witnessed a strong domestic business that grew at a robust pace, registering a handsome topline growth of 18.2 per cent.  The company saw robust performances of the power brands, which attributed to the strong topline 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 has been active contributors to the quarter's growth. The company continued to spend aggressively on advertisement and brand building during the quarter to market its products aggressively.  Raw material prices exhibited a declining trend in the third quarter, which had a positive impact on the quarter's overall performance.
 
According to the company's press release, aggressive marketing campaigns through ATL & BTL activities, delivered rich dividends in terms of growth of most the Power Brands. Navratna Oil, Boroplus cream, Zandu Balm, Mentho Plus Balm, Fair & Handsome and Zandu HCD Range grew in healthy double digits.
 
As per AC Nielsen data, the company continued to gain market share across key categories this quarter. Navratna Cooling Oil has gained 1270 bps with its volume market shares at 70.4 per cent.  Balms market share at 57.4 per cent gained by 140bps. Boroplus Antiseptic cream and Fair and Handsome maintained their market shares at 80.5 per cent  and 64.6 per cent respectively.
 
International business grew by 20.6 per cent during the quarter. The growth was led by GCC and CIS countries. For the first nine months of the year, International Business grew by around 41.5 per cent. While Boroplus is #1 antiseptic cream brand in Russia, Ukraine & Nepal, Navratna Oil and Fair & Handsome brands also enjoy leadership positions in UAE, KSA and Bangladesh. Market shares have further strengthened in these countries during the quarter.
 
With increased emphasis, improved visibility and focused execution, the Modern Trade business and Direct Rural business grew healthily in double digits.
 
Mohan Goenka, Emami Limited said, "Both our domestic and international businesses have done extremely well during this quarter, bettering industry average.  This is despite a challenging environment that has been threatened by delayed winter and economic slowdown.  Consumer sentiment and demand for our products continued to be good both in modern and general trade. Our new launches have received encouraging consumer response and have started making significant contribution in generating revenues. Our international business has also received good traction by recording 20.6% growth.”
 
Harsh Agarwal, Director, Emami Limited said, "Our consistent performance across our businesses has helped us to deliver another quarter of healthy growth. We have continued to focus on strengthening our brands in the market place and have leveraged the softening of raw material prices to our advantage.  Our Healthcare Division also continues to perform strongly with Zandu Panchrishta and Vigorex leading the growth and we wish to make Zandu a formidable brand in the healthcare & wellbeing space. Our recent acquisitions of SHE Comfort brand and controlling stake in Fravin Pty Ltd, Australia mark our entry into feminine hygiene and natural & organic personal care space respectively which are strategic steps towards making Emami a truly global brand.”