Kolkata-based FMCG company Emami Ltd reported a steady 9% growth in its core domestic business during the third quarter of FY25, backed by a 6% increase in volumes. The company’s total revenue from operations rose by 5% to Rs 1,049 crore.
Emami’s gross margins improved by 150 basis points to 70.3%, while EBITDA grew by 8% to Rs 339 crore, translating to a margin of 32.3%, an improvement of 70 basis points. The company’s profit after tax also rose by 8% to Rs 279 crore.
“FY25 is shaping up to be a promising year as we continue to deliver profit-driven growth, achieving improved margins across the board and outperforming industry benchmarks. 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,” Mohan Goenka, Vice Chairman and Whole-Time Director, Emami Limited said.
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A significant highlight of the quarter was the rebranding of its popular fairness cream, Fair and Handsome, to Smart and Handsome in January 2025. The rebranding reflects a shift towards broader male grooming solutions, focusing on face, body, and hair care. Bollywood actor Kartik Aaryan was announced as the brand ambassador for the refreshed product line.
Additionally, Emami launched Mentho Plus Balm Total in December 2024, targeting the southern market and expanding its pain management portfolio.
Market trends and challenges
The quarter presented a mixed scenario for the FMCG sector. Urban demand faced challenges due to rising food inflation and liquidity issues in retail and wholesale channels. However, rural demand remained steady, aided by favourable monsoon conditions and a good harvest. Seasonal categories faced pressure due to the delayed onset of winter.
Despite these challenges, key brands like BoroPlus and the healthcare range performed well.
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