In the third quarter of the current fiscal year, Emami has reported a 3.16% decline in its spending on advertisements and sales promotion on a YoY basis. This time around, the FMCG player’s ad spends stood at Rs 15,326 lakh as against Rs 15,825 lakh it had spent in Q3FY22.
Emami’s Profit After Tax saw a jump of 6% as the company had clocked in Rs 23,297 lakh in the third quarter of the current fiscal year. During the third quarter of the previous fiscal year, the FMCG player’s PAT stood at Rs 21, 952 lakh.
In addition to this, Emami’s Revenue from Operations was also marginally up by 1.2% and stood at Rs 98,272 lakh in Q3 of FY23, juxtaposed to Rs 97,106 lakh it generated in the corresponding quarter, last year.
As per Emami, the domestic business of the company grew by 1% during the quarter translating into a 3-year CAGR of 6% as despite rural markets remaining muted, urban-centric new age channels like Modern Trade continued to grow strongly by 20% and e-commerce by 45% during the quarter.
“Both Modern Trade and eCommerce, put together, now contribute to 18.4% of domestic revenues against 13.8% in Q3 last year,” it mentioned.
Sharing his viewpoint on the quarterly update, Harsha V Agarwal, Vice Chairman and Managing Director, Emami, said, “The environment has been challenging due to high inflation, consumption slowdown, poor rural growth and a warmer winter. In the given circumstances, we have delivered a satisfactory performance with a 7% revenue growth on a 3-year CAGR basis in Q3FY23.”
“We continue to invest strongly behind our power brands, innovations, channel expansions and distribution optimizations. We believe that these sustained efforts will help us achieve sustainable and profitable growth,” he added.
Additionally, Mohan Goenka, Vice Chairman and Whole-Time Director, Emami, also stated that notwithstanding the muted consumption patterns, The company’s focus on innovation remains strong.
“Our new launches and digital-first NPDs have contributed 4% to our Domestic net sales during the quarter and new age channels viz. Modern trade, eCommerce and D2C continue to grow in excess of 20%,” he added.