The male grooming range also recovered and posted a positive growth led by the relaunch of Fair and Handsome Range.
Rural markets – which contribute significantly to Emami’s sales – continued to perform, though growth in urban markets also picked up. The e-commerce channel grew by about 3.5x during the quarter; modern trade, too, registered a growth of 51 per cent during the quarter.
Mohan Goenka, director, Emami
Limited, said, “We are optimistic to close the year not only on a positive note but expect to post a high single digit overall growth.”
Profits and margins increased significantly during the quarter on the back of cost control measures and benign raw material prices. Gross margins at 70.4 per cent grew by 210 bps while EBIDTA grew by 29 per cent; EBIDTA margins at 36.4 per cent grew by 390 bps. PAT margins at 22.4 per cent increased by 460 bps.
Harsha V Agarwal, director, Emami, said, “We are witnessing a consistent and all-round growth coming from all channels over the last two quarters and expect to continue with this growth trajectory. Most of our brands, including power brands and digital-first brands in the healthcare segment are on their growth path.”
“International business too grew strongly by 26 per cent led by MENAP and SAARC regions during the quarter,” he added.
The company’s ad-spends have returned to pre-Covid levels and Agarwal said that Emami would continue to invest in existing brand and categories to increase market penetration.
The company has declared a second interim dividend at Rs 4 per equity share.
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