Emami's Q2 ad spends up 9.14% YoY to Rs 154.41 crore

In the second quarter of the current fiscal year, FMCG major, Emami, has recorded a spike of 9.14% in its ad-spends on a YoY basis. In the quarter ended September 30, 2023, the company had allocated a sum total of Rs 154.41 crore on advertisement and sales promotion.

In Q2FY23, the company had spent Rs 141.49 crores on advertising and promotion.

Similarly, the company’s ad spends also moved up 10.26% YoY on a half-yearly basis as it allocated an ad budget of Rs 306.28 crore in H1FY24 as opposed to Rs 277.78 crore in the corresponding period of the previous fiscal year.

However, there was a very minor (0.08%) fall in the company’s PAT on a YoY basis. In the second quarter ended September 30, 2023, the company’s PAT stood at Rs 179.99 crore as against Rs 180.13 crore in Q2FY23.

When comparing Emami’s PAT during H1FY23, which stood at Rs 252.82 crore, to that of H1FY24, it was found that the profits surged 25.28% on a YoY basis to Rs 316.74 crore.

It is also to be noted that Emami’s Revenue from Operations also grew 6.28% YoY in Q2FY24 as the FMCG major clocked in Rs 864.87 crore during the quarter, as against Rs 813.75 crore it generated during Q2FY23.

Similarly, on a half-yearly basis, the same was up 6.52% YoY, from Rs 1587.06 crore in H1FY23 to Rs 1690.53 crore in H1FY24.

On the other hand, the total expenses of the conglomerate went up meagerly by 2.07% on a YoY basis to Rs 631.20 crore in Q2FY24. In the corresponding period of the previous fiscal, Emami had spent Rs 618.37 crore.

In the half year ended September 30, 2023, the total expenses of the conglomerate were also up 3.98% YoY. In H1FY24, the conglomerate’s total expenditure summed up to Rs 1266.85 crore, whereas in H1FY23, the same amounted to Rs 1218.36 crore.

In its regulatory filing, Emami also mentioned that while the Domestic Business grew at 4%, it was the International Business of the conglomerate which registered a growth of 12%.

“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 mentioned.

Commenting on the quarterly update, 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 the future growth of the Company,” he said.

Adding to this, Mohan Goenka, Vice Chairman and Whole-Time Director, Emami, also emphasised that despite macroeconomic challenges, the company achieved a 6% revenue growth and that notably, Emami’s gross margins also expanded by 350 basis points, showcasing the brand’s operational excellence.

“EBITDA soared by 20%, with margins expanding by 300 basis points, underscoring our dedication to value and quality. These achievements affirm our commitment to delivering value and quality to our consumers, partners and stakeholders. With the Government's support creating favourable conditions in rural markets, we're poised for a strong second half, amplifying our market presence,” he said.

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