Emami continues growth momentum in Q4; PAT records nearly 4-folds jump

During the quarter, Emami’s PAT at Rs88cr grew by 3.8 times and PAT Margins at 12.0% increased by 760 bps. Cash Profits at Rs171cr too increased by 57% with margins increasing by 300 bps at 23.4%.

Input cost pressure increased due to inflation in key commodities which led to a gross margin decline of 250 bps. However, EBIDTA at Rs163cr grew by 65% and EBIDTA margins at 22.3% grew by 380 bps.

Emami’s International business grew by 28% on the back of robust performance in markets of SAARC, GCC & Africa during the quarter. 

Brands like 7 Oils in One, Creme 21 and Kesh King performed well in the International geographies. The CSD business however declined by 3% during the quarter.

The Company also rewarded its shareholders handsomely during the year by declaring two interim dividends of Rs4 each, cumulatively amounting to Rs356cr, i.e. a payout of 78% on PAT and 43% on Cash Profits. 

The Company also completed Buyback of its shares amounting to Rs221cr (including taxes). Despite these outflows, the Company reported a Net Cash surplus of Rs357cr at the end of the year.

Mohan Goenka, Director, Emami Limited said: “We are very happy to have continued with our growth momentum and consistently delivered broad based growth across brands, channels and businesses and close the fourth quarter with an overall revenue growth of 37% and EBIDTA growth of 65%, despite increase in major input costs in Q4FY21.  While rural demand has sustained, urban demand is gradually picking up.      Our domestic business grew by 44%, International business by 28% in Q4FY21 and we continued to improve our sales and profitability quarter on quarter. “

Harsha V Agarwal, Director, Emami Limited said: “This quarter’s performance delivering a consistent all-round growth meets with our expectation. All our major brands grew by more than 30% during the quarter with the Healthcare range’s performance leading the growth chart by 67%, followed by Kesh King which grew by 45%, Pain Management range by 38%, Navratna by 28%, BoroPlus by 4.5 times and Male Grooming range by 26%. Contribution of e-commerce business also increased from 1.7% of Domestic sales in Q4FY20 to 3.7% in Q4FY21. In our International Business, our new brand Creme 21 has consolidated its position and have come out on tops followed closely by 7 Oils in One. During the quarter, we invested in brand building, resulting in 37% growth in our ad spends, which is in line with our sales growth. With our focus on digitization and evolved business strategies, we are confident of continuing the growth momentum in the long run despite the 2nd wave of COVID-19”.

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( With inputs from indiainfoline)