Net sales rose by 5.5% to Rs 851.44 crore in the second quarter from Rs 807.36 crore recorded in the same period last year.

On the expenditure front, Emami's materials cost aggregated to Rs 258.78 crore (down 4.7% YoY), A&P spends added up to Rs 154.41 crore (up 9.1% YoY), staff costs amounted to Rs 101.66 crore (up 8.8% YoY) and admin and other expenses summed up to Rs 116.34 crore (up 4% YoY) in Q2 FY24.

EBIDTA improved by 19.6% to Rs 233.68 crore in Q2 FY24 from Rs 195.38 crore in Q2 FY23.

Profit before tax in Q2 FY24 stood at Rs 195.83 crore, up by 5.6% from Rs 185.52 crore in Q2 FY23. Tax outgo during the period under review nearly tripled to Rs 15.82 crore as compared with an outgo of Rs 5.39 crore posted in the corresponding period last fiscal.

Emami said that the Domestic Business witnessed a commendable 4% growth with a volume growth of 2%, driven by channels catering to urban markets such as Modern Trade and E-commerce. The International business also expanded by an impressive 12% during the quarter, delivering a constant currency growth of 16%, primarily attributed to robust performances in the SAARC and MENAP regions.

The company unveiled a range of innovative digital-first products in the Domestic business during the quarter. The company also launched 3 new products under the Creme 21 brand in the international markets.

Additionally, the company made its foray into the juice category with “AloFrut” through strategic investment in Axiom Ayurveda Pvt Ltd and its subsidiaries/associations by acquiring 26% equity stake. Axiom markets beverage products under the brand “AloFrut”, which are most refreshing and healthy fusion of aloe vera pulp and fruit blends.

Leveraging lower raw material costs and judicious price hikes, the quarter saw a remarkable expansion in Gross margins by 350 basis points, reaching 70.1%. EBIDTA margin for the quarter was at 27.0%, an increase of 300 basis points.

The board of directors declared an interim dividend of 400%, amounting to Rs 4 per share for FY24.

Harsha V Agarwal, vice chairman and managing director, Emami, said: “In this dynamic and challenging environment, our results exemplify our dedication to growth and innovation, marked by a good increase in both volumes and revenues.

Strong performance by both Modern Trade and e-commerce has led to a decent revenue growth of 6% and an impressive constant currency growth of 16% in our international business during this quarter.

Our recent expansion into the juice category, marked by a strategic 26% investment in Axiom Ayurveda (AloFrut), aligns with our vision to diversify into high growth segment where we are currently not present. These strategic entries in diverse categories act as a launch pad for future growth of the company.”

Emami is one of India’s leading FMCG companies engaged in manufacturing & marketing of personal care & healthcare products. With over 450 diverse products, Emami’s portfolio includes trusted power brands like Navratna, BoroPlus, Fair & Handsome, Zandu Balm, Mentho Plus and Kesh King.

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