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EMAMI POSTS RESILIENT PERFORMANCE AMIDST SLOWDOWN - PROFITS UP BY 5% IN Q3 AND BY 13% IN 9MFY20


EMAMI POSTS RESILIENT PERFORMANCE AMIDST SLOWDOWN.

PROFITS UP BY 5% IN Q3 AND BY 13% IN 9MFY20



v Flat revenue growth in Q3 and three in 9MFY20.



o Revenues excluding winter portfolio grew by 8% in Q3 and by 5% in 9MFY20

o International business grew by 18% in Q3 and by 24% in 9MFY20



v PAT grew by 5% in Q3 and by 13% in 9MFY20.




v Launched innovative products to deal with consumer need gaps - Navratna GaramTel and Zandu Ayurvedic Cough syrup during a smart sachet priced at just ₹ 5/-




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The Board of Directors of Emami Limited met on Friday, 7th February 2020 to think about the unaudited financial results of the corporate for the quarter and nine months ended 31st December 2019.

The Company posted resilient growth during the quarter despite ongoing challenges like overall weak consumption environment within the domestic business, weak rural demand, liquidity concerns and hike in food inflation. Nearly 65% of the portfolio (i.e. excluding winter products) grew by 8%. However, delayed onset of winters impacted the sales of winter portfolio resulting in an overall flat revenue growth in Q3FY20 with consolidated revenues at ₹ 813 cr.



In the Domestic Business, Pain Management range, Kesh King range, Navratna range, 7 Oils in One posted robust growth while healthcare range performed satisfactorily. International Business also grew by 18% led by robust performance in SAARC and MENAP regions. CSD channel and Modern trade also grew by 7% and 15% respectively.



During the quarter, the corporate launched Navratna Garam Tel, an ayurvedic innovation that gives instant warmth and relief in harsh winters in North and Central India. Under the healthcare umbrella, the corporate also launched Zandu Ayurvedic Cough Syrup (in a sensible sachet at just ₹ 5/- price point).













During the quarter, Gross margins at 68.2% grew by 120 bps. Advertisement spends at 17.0% of sales increased by 110 bps thanks to investments in new launches. EBIDTA at ₹ 264 cr posted flat growth with margins at 32.5% and PAT at ₹ 144 cr grew by 5% with PAT margins at 17.8% growing by 80 bps.



Mr Mohan Goenka, Director, Emami Limited said:



"We are happy that our Q3 performance has been led by the robust performance by most of our power brands, growing by 8%, excluding the winter portfolio. We also are delighted that our power brands, regardless of the demand environment, continued to realize market shares during the quarter and strengthen their leadership positions in categories where they're present. Our international business and modern trade channel continues to perform well and that we are hopeful that within the next 2-3 quarters, the general consumption environment will improve to drive offtake.”



Mr Harsha V Agarwal, Director, Emami Limited said:



“This quarter we launched innovative products like Navratna Garam Tel and Zandu Ayurvedic Cough Syrup to deal with market need gaps and lifestyle requirement of the consumers. While lower staple costs helped the corporate to extend its gross margins, ongoing cost control measures are expected to aide profitability within the coming quarters. we'll still invest in our brands and marketing initiatives to capitalize the positive market condition that we expect to emerge within the days to return .”

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