Company Update : Emami Ltd By Motilal Oswal Financial Services Ltd
In-line performance; healthy 6% volume growth
* Consolidated net sales grew by 5% YoY to INR10,495m (est. INR10,530m).
* Domestic business grew by 9% YoY, with volume growth of 6% (est. 5%, 1.7% in 2QFY25).
* Brand-wise performance in 3QFY25: Navratna and Dermi-cool range +3% YoY; Healthcare range +13% YoY; Boroplus +20% YoY; Pain management range +3% YoY; Kesh King range -10% YoY; Male Grooming -4% YoY
* Gross margin expanded by 150bp YoY to 70.3%. (est. 69.5%).
* Absolute ad spends increased by 6% YoY to INR1,757m.
* As a % of sales, ad spends rose 10bp YoY to 17%, employee expenses increased by 50bp YoY to 11%, and other expenses grew 30bp YoY to 11% in 3QFY25.
* EBITDA margin expanded by 70bp YoY to 32.3% (est. 31.9%), 12-quarter high.
* EBITDA grew 8% YoY to INR3,387m (est. INR3,357m).
* PBT grew 10% YoY to INR3,059m (est. INR3,019m).
* APAT rose 6% YoY to INR3,006m (est. INR3,046m).
* International business revenue declined 3% YoY (-2% in cc terms).
* In 9MFY25, net sales/EBITDA/APAT increased by 6%/9%/13%.
Other key highlights
* Urban demand faced significant headwinds, primarily due to rising food inflation and liquidity constraints in retail and wholesale trade channels.
* Rural demand exhibited resilience, driven by favorable monsoon conditions and a strong harvest.
* Seasonal categories were impacted by the delayed onset of winter, adding further complexity to market dynamics.
* Organized channels like Modern Trade, e-Commerce, and Institutional sales now contribute 28.6% of domestic business and grew by 13% in 3Q.
* The company has rebranded Fair and Handsome to Smart and Handsome in Jan’25
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SEBI Registration number is INH000000412
