Yahoo Finance

• Consolidated Revenue: INR 891 crore in Q2, a growth of 3%.

• First Half Revenue: INR 1,797 crore, a growth of 6%.

• Domestic Business Growth: 3% in Q2.

• Key Brand Growth: Navratna and DMI grew by 10%, Healthcare range by 11%, Pain management by 5%, Boroplus by 2%.

• Decline in Categories: Male grooming declined by 13%, Kesh King by 9%.

• International Business Growth: 12% excluding Bangladesh, 6% overall in constant currency terms.

• Gross Margin: Expanded by 60 basis points to 70.7% in Q2.

• EBITDA: Grew by 7% to INR 250 crore, with margins expanding by 110 basis points.

• Profit Before Tax (PBT): Increased by 13% to INR 220 crore, with a 220 basis points margin expansion.

• Profit After Tax (PAT): Rose by 19% to INR 213 crore.

• First Half Gross Margin: Expanded by 140 basis points to 69.2%.

• First Half EBITDA: Reported a 10% growth to INR 467 crore.

• First Half PBT: Increased by 15% to INR 399 crore.

• First Half PAT: Rose by 16% to INR 365 crore.

• Interim Dividend: Declared at 400%, amounting to INR 4 per share for FY24.

• Warning! GuruFocus has detected 2 Warning Signs with BOM:543243.

Release Date: November 08, 2024

For the complete transcript of the earnings call, please refer to the full earnings call transcript.

Positive Points

• Emami Ltd (BOM:531162) reported a 3% growth in consolidated revenues for Q2, with a 6% growth for the first half of FY25.

• The domestic business saw a 3% growth in Q2, driven by double-digit gains in key brands like Navratna and DMI, which grew by 10%, and the healthcare range, which grew by 11%.

• International business showed resilience with a 12% sales growth excluding Bangladesh, and a 6% overall growth in constant currency terms.

• Gross margin expanded by 60 basis points to 70.7% in Q2, with EBITDA growing by 7% and profit before tax rising by 13%.

• The company declared an interim dividend of 400%, amounting to INR 4 per share for FY24, reflecting strong financial performance and shareholder returns.

Negative Points

• High food inflation and political unrest in key markets like Bangladesh posed challenges, impacting consumer demand.

• The male grooming and Case King brands experienced declines of 13% and 9% respectively, indicating struggles in these segments.

• The acquisition of Helias led to a one-time decline in revenues due to management transition, affecting overall performance.

• Despite efforts, the pain management range only grew by 5%, and Boroplus by 2%, showing slower growth in these categories.

• The company faced challenges in the rural market, with inflation impacting mass consumer segments, and the need for strategic interventions to drive growth.