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Emami Profit Drops Amid Rising Costs, Geopolitical Woes
4 Aug
Summary
- Consolidated net profit declined 15% year-on-year in Q1 FY27.
- Total expenses rose 18% due to higher material and advertising costs.
- Domestic revenue grew 20%, offsetting a 10% decline in international sales.
FMCG firm Emami Ltd experienced a consolidated net profit decline of nearly 15% for the first quarter of FY27, reporting Rs 138.94 crore. This decrease, compared to Rs 164.26 crore in the prior year's corresponding quarter, was attributed to a significant rise in total expenses. These expenses escalated by approximately 18%, reaching Rs 813.03 crore, driven by higher material costs, stock purchases, and promotional spending.
Despite the profit dip, Emami's consolidated revenue from operations grew by about 15% to Rs 1,039.21 crore. This growth was bolstered by a robust 20% increase in domestic business, which reached Rs 911.96 crore. Conversely, international revenue saw a nearly 10% decrease, falling to Rs 127.25 crore, primarily due to disruptions linked to the West Asia conflict that hampered order execution.
The company made strategic acquisitions during the quarter, securing a controlling stake in Axiom Ayurveda and IncNut Digital. These investments, along with organized channels and quick commerce, are noted as key drivers of future growth. Emami's management expressed confidence that easing commodity prices and a strong innovation pipeline would support future profitability.
