/bmi/media/media_files/zcoxggdqkooVQXoDP3lJ.jpg)
New Delhi: Home-grown FMCG major Emami reported a 21% quarter-on-quarter (QoQ) and a 6% year-on-year (YoY) increase in advertising and sales promotions expenses for Q3 FY2025.
The company spent Rs 175.73 crore on advertising and sales promotions in the December quarter of the current fiscal year, compared to Rs 145.72 crore in Q2 FY2025 and Rs 165.73 crore in the same period last year.
In total, Emami has spent Rs 505.14 crore on advertising in FY2025 to date, surpassing its ad spend of Rs 472.01 crore for the first nine months of FY2024.
The company’s total adex for FY2024 stood at Rs 652.20 crore.
Emami reported a rise of 7.03% in profit after tax at Rs 278.98 crore in the third quarter ended December 2024, helped by a healthy volume growth in core business.
The company had posted a PAT (profit after tax) of Rs 260.65 crore in the October-December quarter a year ago, according to a regulatory filing from Emami.
Emami's revenue from operations was up 5.33% to Rs 1,049.48 crore during the quarter under review. It was at Rs 996.32 crore in the corresponding quarter.
"The company continued to deliver profit-led growth, with improved margins across the board. Gross margins expanded by 150 basis points to 70.3%," said Emami in its earnings statement.
EBITDA (earnings before interest, tax, depreciation, and amortisation) grew by 8% to Rs 339 crore in the December quarter, with margins expanding by 70 basis points, it added.
About the demand trends, Emami said the macroeconomic environment during the reporting quarter presented a mixed bag of challenges and opportunities.
"Urban demand faced headwinds, influenced by rising food inflation and liquidity constraints in retail and wholesale trade channels. Conversely, rural demand showcased resilience, buoyed by favourable monsoon conditions and a robust harvest, providing a silver lining amidst market uncertainties," it said.
However, the delayed onset of winter impacted seasonal categories, adding another layer of complexity to an already dynamic market environment, Emami added.
"Despite these macroeconomic headwinds, the company reported robust growth of 9% in its core domestic business, driven by a healthy volume growth of 6%," said the Kolkata-headquartered firm.
Key brands such as the healthcare range and BoroPlus delivered strong growth despite the challenges posed by delayed and mild winters. Navratna and the pain management portfolio showcased remarkable resilience, achieving growth in the low single digits.
Emami's total expenses were at Rs 710.79 crore, up 4.3% year-on-year in the December quarter of FY25.
Total income, which includes other revenue, was up 5.07% to Rs 1,064.41 crore.
Meanwhile, in a separate filing, Emami informed that its board of directors declared a second interim dividend of 400%, which is Rs 4 per share for FY25.
"This follows the first interim dividend of 400%, also amounting to Rs 4 per share, declared in Q2. With this, the cumulative dividend payout for FY24 stands at an impressive 800%, equivalent to Rs 8 per share," it said.
Commenting over the results, Vice-Chairman and Whole-Time Director Mohan Goenka said FY25 is shaping up to be a promising year as Emami continues to deliver profit-driven growth, achieving improved margins across the board.
"EBITDA increased by 8% during the quarter, with margins expanding by 70 basis points, underscoring our strong focus on operational excellence. The strategic rebranding of Fair and Handsome to Smart and Handsome, inspired by deep consumer insights coupled with strategic initiatives for skin care and haircare brands, offers significant growth potential," he said.