May 05, 17.46 PM IST || Pocket News Alert
HIGHLIGHTS (CONSOLIDATED
v 21.2% growth in Net Sales at ` 671 cr during the fourth quarter. Growth in FY16 is 18.3% with sales at ` 2,624 cr.
v EBIDTA at ` 182 cr grew by 29.9% during the fourth quarter and by 26.6% in FY16 at ` 684 crores
v Cash Profit* at `166 cr grew by 10.8% during the quarter and by 18.1% in FY16 at ` 614 cr.
v Dividend at 700%, i.e., ` 7/- per share announced by the Board, a dividend payout of 53.2% including dividend tax.
v State of the art new manufacturing unit being established at Guwahati at an outlay of ` 300 crore
*Cash Profit = PAT+ Depreciation & Amortization.
Chandigarh, May 5th, 2016: Emami Limited announced its Audited Financial Results for the fourth quarter & full year ended March 31, 2016 at their Board of Directors’ Meeting held on 5thMay, 2016.
Turnover of the company at ` 671 crores grew by 21.2% in the fourth quarter and by 18.3% in FY16 at `2,624 crores. EBIDTA at ` 182 crores grew by 29.9% in the fourth quarter and by 26.6% in FY16 at ` 684 crores. PAT however was impacted by `73 crore and by ` 210 crore for Q4 & FY16 respectively mainly because of amortisation of Kesh King intangibles. Cash Profits, however at ` 166 cr grew by 10.8% during the quarter and by 18.1% in FY16 with cash profits at ` 614 cr.
Extended winters were positive for winter brands like BoroPlus, however, this led to an adverse impact on the sales of summer products Q4FY16. Overall the domestic business delivered a strong topline growth of 23%.
New launches such as Fair and Handsome Instant Fairness Facewash, Emami 7 Oils in One Damage Control Hair Oil and Zandu Honey performed well. The company continued to spend aggressively on advertisement and brand building during the quarter to strengthen its marketing efforts.
Despite the high increase in A&P spends at 19.0% of sales, the Company’s EBIDTA margins at 27.2% rose by 190 bps in the fourth quarter and by 170 bps at 26.1% in FY16, mainly on account of gross margin expansion.
The company recently launched Navratna i-Cool Talc with “Intelligent Sweat Sense technology” releasing instant cooling on application and also when one sweats. The company also re-launched its HE range of aerosol Deodorants with an improved packaging and a new fragrance HE Respect. HE Deo also forayed into No Gas category with two variants – Body Perfume & ICY Collection.
The power brands continued to maintain leadership in key categories in FY16. Navratna Cool Oils, Zandu & Mentho Plus Balms, Boroplus Antiseptic Cream and Fair and Handsome maintained their leadership positions with FY16 volume market shares at 60.5%, 55.2%, 76.9%, and 64.6% respectively.
INTERNATIONAL BUSINESS
International business grew by 17% during the quarter and by 15% in FY16 despite economic challenges in overseas markets like Russia. SAARC & SEA and MENAP regions led by robust growth in Bangladesh and GCC performed well. Most of our Power Brands led by Navratna and Fair and Handsome have performed well and increased their market shares in the overseas markets.
Mr Mohan Goenka, Director, Emami Limited said :
“In the backdrop of a challenging macro-economic environment, we are happy to announce the domestic business growth of 23% in the fourth quarter and 20% in FY16. The prolonged winter this quarter has helped our winter brands to register a positive growth. Going forward, we will continue to strengthen our core portfolio and focus on top line growth. To augment the same, we are in the process of launching some innovative brand extensions, which we expect to do well in the coming months. We are also strengthening our distribution network to expand our presence further to the deepest corners of the country. Our international business continues to do well.”
Mr Harsha V Agarwal, Director, Emami Limited said :
“This quarter, we have secured good growth by focusing on young target audience, where we see a huge potential and we want to keep investing in newer categories like face wash, deodorant etc apart from our core brands.
Recently, we have introduced unique summer innovations through differentiated brand extensions like Navratna i-cool Talc and HE Deo’s ICY Collection. We strongly believe that both our new products have strong value propositions, especially during the hot & humid summers, to win over consumers.
The Ayurvedic & Natural segment is also growing rapidly with increase in consumer awareness of the benefits that they offer. This is an encouraging trend for the industry and we plan to keep investing and focussing in the healthcare category with our brand Zandu to take advantage of this growth.
We are augmenting our manufacturing capacity as well by investing around Rs. 300 cr in our new plant in Guwahati, Assam, which is expected to become operational by FY 2017.”
ACQUISITION :
Hair & scalp care business under the ‘Kesh King’ and allied brands was acquired for Rs 1,684 (Including duties & taxes) crores in June 2015. It was funded by mix of internal accruals and debt. The brand has been able to consolidate its position and increase market share by 370 bps 35.4% of the Ayurvedic Hair & Scalp care market segment in FY16.
MARKETING:
Launched new ad campaign for Kesh King featuring Bollywood actress Huma Qureshi and directed by Imtiaz Ali on the basis of consumer insights focusing strongly on the product and its benefits.
Brand Navratna became the proud recipient of the prestigious ‘FLAME AWARDS ASIA – SILVER TROPHY 2016” in the category of ‘Promotion & Activation (Sales Promotion)’ for its “Navaratna Kumbh Mela Campaign in Nasik”.