Emami’s net dips 45 percent in Q4

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Kolkata, May 5 (IANS) FMCG company Emami Ltd. on Thursday announced its consolidated net profit in the quarter ended March dipped by 45 percent to Rs.75.85 crore as compared to Rs 138.33 crore in the same quarter last year.

The company’s net sales grew 21.2 percent at Rs.671 crore during the fourth quarter of 2015-16 as against Rs.554 crore in the same quarter of 2014-15.

In the last fiscal, the company’s net profit also fell to Rs.359.06 crore from Rs.485.61 crore in 2014-15, but turnover grew by 18.3 percent at Rs.2,624 crore as compared to Rs.2,217.25 crore.

EBIDTA, at Rs.182 crore, grew by 29.9 percent in the fourth quarter and by 26.6 percent in the fiscal at Rs.684 crore.

“PAT (profit after tax) however was impacted by Rs.73 crore and by Rs.210 crore for Q4 (January-March) and 2015-16 respectively mainly because of amortisation of Kesh King intangibles,” the company said in a statement.

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Hair and scalp care business under the ‘Kesh King’ and allied brands was acquired for Rs.1,684 crore in June 2015, it said.

The company said that extended winters were positive for winter brands like BoroPlus, however, this led to an adverse impact on the sales of summer products in the last quarter.

Overall the domestic business delivered a strong topline growth of 23 percent, the company said.

“Going forward, we will continue to strengthen our core portfolio and focus on top line growth. We are also strengthening our distribution network to expand our presence further to the deepest corners of the country,” said company director Mohan Goenka.

International business of the company grew by 17 percent during the quarter and by 15 percent in the fiscal despite economic challenges in overseas markets like Russia. SAARC, Southeast Asia and MENAP (Middle East, North Africa, Afghanistan and Pakistan) regions led by robust growth in Bangladesh and GCC (Gulf Cooperation Council) performed well, the company said.

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“We are augmenting our manufacturing capacity as well by investing around Rs.300 crore in our new plant in Guwahati, which is expected to become operational by 2016-17,” said company director Harsha V. Agarwal.



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