Emami Q3 profit rises 8%, announces 2nd interim dividend

FMCG and personal care major Emami has recorded 8% year-on-year growth in profit after tax at ₹279 crore for October-December quarter (Q3 FY25) as compared to ₹260 crore in the corresponding quarter last year, with improved margins across the board. The company's revenue in the said quarter stood at ₹1,050 crore, slightly up by 5% from ₹996 crore in the same quarter last year.

Gross margins expanded by 150 basis points to 70.3%. EBITDA grew by 8% to ₹339 crore, with margins expanding by 70 basis points. The company's board has announced a second interim dividend of ₹4 per equity share for FY24. This follows the first interim dividend of ₹4 per share in Q2, taking the cumulative dividend payout for FY24 to ₹8 per share.

The Kolkata-based company's core domestic business growth was recorded at 9% and volume growth at 6%. On its quarterly performance, Emami termed the macro environment of Q3 "a mixed bag" of challenges and opportunities.

Harsha V Agarwal, Vice Chairman and Managing Director, Emami the company recorded 9% growth in core domestic business on a 6% increase in volume in Q3 FY25. "Our targeted distribution strategies for new-age channels have played a vital role in driving success across the business. Strategic initiatives for Kesh King and male grooming along with the expected revival of international business, position us confidently for sustained, robust growth going ahead."

Emami's Vice Chairman and Whole-Time Director Mohan Goenka says FY25 is shaping up to be a promising year. "The strategic rebranding of Fair and Handsome to Smart and Handsome, inspired by deep consumer insights coupled with strategic initiatives for skin care and haircare brands offers significant growth potential.”

Urban demand faced headwinds: Emami

On the continuing headwinds in consumption, Emami says urban demand faced headwinds, influenced by rising food inflation and liquidity constraints in retail and wholesale trade channels. Conversely, rural demand showcased resilience, buoyed by favourable monsoon conditions and a robust harvest, providing a silver lining amidst market uncertainties. However, the delayed onset of winter impacted seasonal categories, adding another layer of complexity to an already dynamic market environment.

"Despite these macroeconomic headwinds, the company reported a robust growth of 9% in its core domestic business, driven by a healthy volume growth of 6%. Key brands such as the Healthcare range and BoroPlus range delivered strong growth despite the challenges posed by delayed and mild winters. Navratna and the Pain Management portfolio showcased remarkable resilience, achieving growth in the low single digits," the company says.

The personal care major says this month rebranded 'Fair and Handsome' to 'Smart and Handsome', and endorsed Kartik Aaryan as the brand ambassador. With this, the company aims to strengthen its leadership in the evolving male grooming market. Additionally, the company launched Mentho Plus Balm Total in the southern region in December 2024, expanding its offerings in the pain management segment.

On the distribution front, the company says its organised channels — modern trade, e-commerce, and institutional sales — now contribute 28.6% of the domestic business, an increase of 160 basis points in Q3. Emami shares closed 2.96% down at Rs 535.15 apiece on the BSE today.