FMCG major Emami Ltd., on Thursday reported a 19% 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% to Rs 891 crore, with the domestic segment advancing by 2.6% and international business growing 6%, excluding a 12% rise outside of Bangladesh, the company said in a statement.
Gross margins for the quarter improved by 60 basis points to 70.7%, reflecting strategic cost management. Earnings before interest, depreciation, tax, and amortisation (Ebitda) reached Rs 250 crore, up 7% year-on-year, while Ebitda margins rose by 110 basis points to 28.1%.
The company during the quarter raised its stake in Helios Lifestyle, the maker of The Man Company brand, from 50.4% to 98.3%, reinforcing its focus on expanding its men's grooming portfolio.
The board declared an interim dividend of 400%, or Rs 4 per share, for fiscal 2024-25.
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% 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 fiscal 2024-25," Mohan Goenka, vice chairman and whole-time director of Emami said.
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