Emami’s Q1 FY2025 adex rises 23.7% YoY to Rs 183.69 crore

New Delhi: Homegrown FMCG major Emami reported an increase of 23.7% (YoY) in ad spending to Rs 183.69 crore in the first quarter of FY2025 in comparison to Rs 151.87 crore spent in the corresponding quarter of the previous year. 

On a QoQ basis, Emami’s adex was nominally up by 1.9%. The company allocated Rs 180.19 crore on advertising and promotions in Q4 FY24. 

In the last fiscal year, the FMCG major spent a total of Rs 652.20 crore on advertising.

While overall revenues of Rs 906 crore grew by 10%, domestic business also grew by 10%, with a healthy volume growth of 8.7%. 

Despite the geopolitical crisis and currency depreciations in key geographies, international business grew by 11% in constant currency and by 10% in INR terms. The performance was led by double-digit growths in MENA and SAARC regions, stated the company.
 
In Q1 FY25, gross margins at 67.7% expanded by 230 basis points. EBIDTA at Rs 216 crore grew strongly by 14%, despite strong investments behind brands, which led to a 23% surge in A&P spends. 

Notably, profit before tax at Rs 178 crore grew by 19% and profit after tax at Rs 153 crore grew by 11%.

Modern trade, eCommerce, and institutional channels continued to post strong growth, while general trade also rebounded to positive territory, said the company.
 
“The summer portfolio delivered strong growth, fuelled by the robust performances of Navratna Cool Talc and Dermicool. Healthcare range, 7 Oils in One, The Man Company, Brillare, and BoroPlus also performed well,” it added.
  
To strengthen the brand equity of Navratna, the company onboarded renowned comedian Kapil Sharma and his team for Navratna Cool Oil’s new campaign - “Thandak ka Badshah.”  A new TV commercial featuring Shilpa Shetty and Palak Tiwari was also launched to drive awareness and consideration for Kesh King Shampoo.
  
Harsha V Agarwal, Vice-Chairman and Managing Director, Emami, said,  “I am very happy to announce strong and profitable growth this quarter, highlighted by robust domestic volume growth of 8.7%, a befitting start to the new financial year as we celebrate our 50th Anniversary. Our summer portfolio performed exceptionally well, led by the stellar performances of our power brands, Navratna and Dermicool. Modern trade, eCommerce, and institutional channels continued to post strong growth in the Domestic business and our International Business also witnessed impressive growth of 11% in constant currency, driven by the MENA and SAARC regions.  As we move forward, we remain committed to delivering sustainable and profitable volume-led growth.”
 
Mohan Goenka, Vice-Chairman and Whole-Time Director, Emami, said, "I am delighted to share that while our sales grew in double digits, our profits grew even faster with a 14% growth in EBITDA, despite 21% higher investments behind our brands. Our EBITDA margins also improved by 90 basis points. We continue to focus on our strategy to improve our distribution, invest aggressively in our key brands, and drive market share growth across our portfolio. With the forecast of a normal monsoon and the government's continued focus on macro-economic growth, we expect growth to accelerate in the coming months."