Emami (531162) Q1 24/25 earnings summary

Executive summary

• Q1 FY25 began with sequential demand improvement and strategic initiatives, despite discretionary consumption being impacted by rising food prices and muted consumer confidence.

• Consolidated revenue grew 10% year-over-year to ₹906 crore (Rs. 90,607 lacs), with profit after tax up 11% to ₹153 crore (Rs. 15,060 lacs).

• Domestic business volumes rose 8.7% and value by 10%, led by summer portfolio; international business grew 11% in constant currency.

• Strong marketing, new product launches, and digital-first initiatives drove growth in key brands and categories.

• Unaudited standalone and consolidated financial results for the quarter ended June 30, 2024, were approved by the Board on August 1, 2024.

Financial highlights

• Consolidated revenue reached INR 906 crore (Rs. 90,607 lacs), up 10% year-over-year; consolidated PAT was Rs. 15,060 lacs.

• Gross margin improved by 230 bps to 67.7%; EBITDA rose 14% to INR 216 crore, with margin up 90 bps.

• Profit before tax increased 19% to INR 178 crore; profit after tax grew 11% to INR 153 crore.

• Advertising and promotion spend increased by 21%, now at 20.3% of revenue.

• Basic and diluted EPS (consolidated) for Q1 FY25 was Rs. 3.50, up from Rs. 3.13 in Q1 FY24.

Outlook and guidance

• Management remains optimistic for accelerated improvement, supported by a normal monsoon and government macroeconomic focus.

• No formal revenue guidance, but expectations are for better performance than last year, with volume-led growth and continued investment in key brands.

• Continued focus on digital-first launches, brand extensions, and enhanced marketing to sustain growth.

• MAT credit recognized during the quarter is expected to be utilized in future years based on projected profits.