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Emami Ltd Interim / Quarterly Report 2021
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Interim / Quarterly Report
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Date: 27th January, 2021
The Secretary The National Stock Exchange of India Ltd. Exchange Plaza, Plot No. C/1, G. Block Bandra Kurla Complex, Bandra (E) Mumbai - 400 051
The Secretary BSE Limited Phiroze Jeejeebhoy Towers Dalal Street Mumbai - 400 001
Dear Sirs,
Pursuant to Provision of Regulation 30 of the SEBI (Listing Obligations and Disclosure Requirements) Regulations, 2015, we are enclosing herewith copy of Presentation and Press Release on Company's Performance in Q3FY21.
The aforesaid information will also be disclosed on the website of the company www.emamiltd.in
This is for your information and records.
Thanking you,
Yours faithfully,
Ashok Purohit Assistant Company Secretary (Encl.: As above)
Q3FY21 Performance Update 27th January 2021
Q3 & 9MFY21 Revenues 2
| Key Financials | Q3FY21Growth | Q2+ Q3Growth | 9MFY21Growth | Q3FY21 BUSINESS WISESALES SPLIT |
|---|---|---|---|---|
| •DomesticBusiness | 16% | 15% | 2% | Institutional |
| •International Business | 26% | 19% | 7% | 3%Int'l Business14% |
| •InstitutionalBusiness | -27% | -18% | -23% | |
| Consolidated Net Sales | 16% | 14% | 2% | Domestic83% |
| •Other Operating Income | -31% | -35% | -29% | |
| Total Revenues | 15% | 13% | 1% |
▹ 13% volume growth in Domestic Business in Q3FY21
Q3FY21 Profitability (Consolidated) 3
| Key Financials | Q3FY21Growth | Margins | |
|---|---|---|---|
| Revenues | 15% | - | - |
| Gross Profit | 19% | 70.4% | +210 bps |
| EBIDTA | 29% | 36.4% | +390bps |
| PAT | 45% | 22.4% | +460bps |
| CashProfit | 32% | 32.5% | +420 bps |
- ▹ Margins increased due to stringent cost control measures and benign raw material prices.
- ▹ Highest ever EBIDTA margin of 36.4% in Q3
Q3FY21 Domestic Brandwise Performance 4
| Key Brands | Q3FY21 Growth | Q2+Q3 Growth | 9MFY21 Growth |
|---|---|---|---|
| Healthcare Range | 38% | 44% | 39% |
| PainManagementRange | 12% | 21% | 19% |
| NavratnaRange | -12% | 3% | -22% |
| Kesh King Range | 16% | 28% | 7% |
| BoroPlusRange | 21% | 5% | 7% |
| Male Grooming Range | 5% | -11% | -37% |
| 7 Oils in One | 32% | 21% | 1% |
New Launches in Q3FY21
EMASOL range of home hygiene products.
- Range includes -Disinfectant Floor Cleaner, Disinfectant Toilet Cleaner, Disinfectant Bathroom Cleaner, Antibacterial Dish Wash Gel and an All Purpose Sanitizer
- Enriched with BGV24™* advanced antimicrobials action that offers upto 24 Hours protection from virus, germs and bacteria.
Zandu Ortho Vedic Oil for Knee and Joint Pain
- First in category to provide "7 Days Visible Improvement"
- Improves mobility in muscle and joints
- Quick and long lasting relief
Zandu Giloy Tulsi Juice
• Major herb having high relevance for Immunity.
New Launches Performance 6
30+
New launches in 9MFY21
60+
SKU's launched in 9MFY21
4%
Contribution to Domestic Business in 9MFY21
Relaunch of Fair and Handsome 7
- ▹ Fair And Handsome Fairness Cream and Fair And Handsome Instant Fairness Face Wash renamed as Fair And Handsome Radiance Cream and Instant Radiance Face Wash
- ▹ New packaging of Fair and Handsome cream replacing "lightening of skin tone" with strong benefits offered
▹ New differentiated packaging design for Fair and Handsome Facewash, in line with Men's Face Wash category codes
Launched new thematic Campaign – "Ab har roz handsomegiri" featuring new brand celebrity superstar Salman Khan
International Business Performance
- Q3FY21 Sales performance-
- MENAP grew by 82%
- SAARC grew by 8%
- New Launches incl. Immunity Boosters, Sanitizers and Hygiene products contributed 4% of International sales in Q3 and 6% in 9MFY21
| SAARC | SouthAsianAssociationforRegionalCooperation(MajorBangladeshNepalLanka)countriesSrietc–,, |
|---|---|
| SEA | SouthEastAsia(MajorMalaysia&Singapore)Myanmarcountries–, |
| MENAP | MiddleEast,NorthAfrica&Pakistan(MajorBahrain)UAEQatarOmanKuwaitcountriesetc–,,,, |
| CIS | CommonwealthofIndependentStates(MajorUkraine)CountriesRussiaetc–, |
| Others | Africa,Americaandother |
Major New Launches - International Business
Creme 21 Range
Turmeric Hand Sanitizer Gel
Hand Sanitizer Hand Sanitizer
Spray
Hand Sanitizer Gel Tube
| 75% | |||
|---|---|---|---|
| Creme | SanitizerWipes | in.ALCOHOL | |
| Creme 21 | Germany | 99.9%GERMPROTECTION | |
| 50 Wipes150X200mm |
Sanitizer wipes
Gold Turmeric Range BoroPlus Range
New TVC's
Zandu Balm Pandemic TVC Addresses today's pandemic situation and how people are using balm in different ways to tackle the stress.
Zandu Balm Winter TVC Specially made to increase usage and trials of Zandu Balm in North India Markets during winter.
Fair and Handsome Fairness Cream TVC
Setting the context of "use a men's cream not a women's" along with highlighting two key benefits delivered by the Cream: Sun Protection and Instant Radiance
Fair and Handsome Instant Fairness Facewash TVC Setting the context of "daily environmental ills making skin dull" and benefit - radiant fresh look, instantly along
New TVC's for EMASOL range
Highlighting 24 Hours Germ Protection at Value Pricing, with the tagline "Jeeto Swachh Bharat ki Ladai."
New TVC's
Zandu Immune India Offer TVC
Launched during October, the TVC highlights to fight the Pandemic with price slashed in Zandu Chyavanprash along with a free Hand Sanitizer
Zandu Chyavanprash TVC
Launched during November, focusing on 2X Immunity and for boosting immunity of entire family
Zandu Kesari Jivan TVC
Launched during November, focusing on the core consumer need of Energy and Stamina for seniors along with 2X Immunity claim
New TVC's for Zandu Honey
Immunity campaign launched in November focusing on the Proven Higher Antioxidant properties of Zandu Pure Honey which provides Stronger Immunity
Zandu Immu Soft Chew TVC
Campaign started in December, highlighting Zandu ImmU Soft Chews overcoming the barrier of taste and format of existing immunity products by providing 2X immunity in a tasty soft chews format.
Zandu Ortho Vedic Oil TVC
New campaign with the message being – Zandu Ortho Vedic Oil shows 'visible improvement in mobility within 7 days of usage
Print Campaigns
12
Print Campaigns
Financial Analysis
Earnings analysis for Q3 & 9MFY21
Q3FY21 Financial Analysis
15
Cost of Goods Sold
Staff Costs (as a % of Sales)
- 100 bps
Admin & Other Exp (as a % of Sales)
- 40 bps
Other Income (₹ in Millions)
Interest Paid (₹ in Millions)
Q3FY20 Q3FY21
9MFY21 Financial Analysis
16
Interest Paid (₹ in Millions)
Q3FY21 Summarized Financials
₹ in Millions
| Particulars | Q3FY21 | % | Q3FY20 | % | Growth % | FY20 | % |
|---|---|---|---|---|---|---|---|
| Net Sales | 9,247.4 | 99.0% | 7,998.0 | 98.4% | 15.6% | 26,106.4 | 98.3% |
| Other Operating Income | 88.7 | 1.0% | 128.4 | 1.6% | -30.9% | 442.4 | 1.7% |
| Revenue from Operations | 9,336.1 | 100.0% | 8,126.4 | 100.0% | 14.9% | 26,548.8 | 100.0% |
| Materials Cost | 2,766.0 | 29.6% | 2,581.9 | 31.8% | 7.1% | 8,761.0 | 33.0% |
| A&P | 1,553.6 | 16.6% | 1,382.6 | 17.0% | 12.4% | 4,711.4 | 17.7% |
| Staff Cost | 767.1 | 8.2% | 748.6 | 9.2% | 2.5% | 2,995.1 | 11.3% |
| Admn & Other Exp | 847.5 | 9.1% | 773.1 | 9.5% | 9.6% | 3,175.9 | 12.0% |
| EBIDTA | 3,402.0 | 36.4% | 2,640.2 | 32.5% | 28.9% | 6,905.4 | 26.0% |
| Other Income | 91.9 | 1.0% | 155.8 | 1.9% | -41.0% | 570.7 | 2.1% |
| Interest | 13.7 | 0.1% | 49.3 | 0.6% | -72.2% | 210.1 | 0.8% |
| Amortisation of acquired TM's/ brands | 602.6 | 6.5% | 641.6 | 7.9% | -6.1% | 2,589.0 | 9.8% |
| Depreciation/Amortisation of other assets | 341.1 | 3.7% | 213.9 | 2.6% | 59.5% | 774.3 | 2.9% |
| PBT before Exceptional Items | 2,536.4 | 27.2% | 1,891.2 | 23.3% | 34.1% | 3,902.7 | 14.7% |
| Exceptional Items | - | 0.0% | 32.6 | 0.4% | -100.0% | 106.8 | 0.4% |
| PBT | 2,536.4 | 27.2% | 1,858.6 | 22.9% | 36.5% | 3,795.9 | 14.3% |
| Tax | 437.8 | 4.7% | 398.2 | 4.9% | 9.9% | 712.7 | 2.7% |
| PAT | 2,098.6 | 22.5% | 1,460.4 | 18.0% | 43.7% | 3,083.2 | 11.6% |
| Share of Minority Interest & P/L of Associate | (8.9) | -0.1% | (16.0) | -0.2% | -44.4% | (54.1) | -0.2% |
| PAT After Minority Interest & Associate | 2,089.7 | 22.4% | 1,444.4 | 17.8% | 44.7% | 3,029.1 | 11.4% |
| Cash Profit (PAT + Dep. & Amortization) | 3,033.4 | 32.5% | 2,299.9 | 28.3% | 31.9% | 6,392.4 | 24.1% |
| EPSRs- | 4.70 | 3.18 | 6.67 | ||||
| CashEPSRs- | 6.82 | 5.07 | 14.08 |
9MFY21 Summarized Financials
₹ in Millions
| Particulars | 9MFY21 | % | 9MFY20 | % | Growth % | FY20 | % |
|---|---|---|---|---|---|---|---|
| Net Sales | 21,253.5 | 98.9% | 20,878.1 | 98.4% | 1.8% | 26,106.4 | 98.3% |
| Other Operating Income | 244.2 | 1.1% | 343.9 | 1.6% | -29.0% | 442.4 | 1.7% |
| Revenue from Operations | 21,497.7 | 100.0% | 21,222.0 | 100.0% | 1.3% | 26,548.8 | 100.0% |
| Materials Cost | 6,564.3 | 30.5% | 6,905.0 | 32.5% | -4.9% | 8,761.0 | 33.0% |
| A&P | 3,231.5 | 15.0% | 3,722.3 | 17.5% | -13.2% | 4,711.4 | 17.7% |
| Staff Cost | 2,332.2 | 10.8% | 2,274.5 | 10.7% | 2.5% | 2,995.1 | 11.3% |
| Admn & Other Exp | 2,167.2 | 10.1% | 2,400.1 | 11.3% | -9.7% | 3,175.9 | 12.0% |
| EBIDTA | 7,202.6 | 33.5% | 5,920.1 | 27.9% | 21.7% | 6,905.4 | 26.0% |
| Other Income | 237.8 | 1.1% | 425.8 | 2.0% | -44.1% | 570.7 | 2.1% |
| Interest | 85.5 | 0.4% | 186.0 | 0.9% | -54.0% | 210.1 | 0.8% |
| Amortisation of acquired TM's/ brands | 2,089.1 | 9.7% | 1,956.0 | 9.2% | 6.8% | 2,589.0 | 9.8% |
| Depreciation/Amortisation of other assets | 750.8 | 3.5% | 554.9 | 2.6% | 35.3% | 774.3 | 2.9% |
| PBT before Exceptional Items | 4,514.9 | 21.0% | 3,649.0 | 17.2% | 23.7% | 3,902.7 | 14.7% |
| Exceptional Items | - | 0.0% | 32.6 | 0.2% | -100.0% | 106.8 | 0.4% |
| PBT | 4,514.9 | 21.0% | 3,616.4 | 17.0% | 24.8% | 3,795.9 | 14.3% |
| Tax | 816.6 | 3.8% | 786.4 | 3.7% | 3.8% | 712.7 | 2.7% |
| PAT | 3,698.3 | 17.2% | 2,830.0 | 13.3% | 30.7% | 3,083.2 | 11.6% |
| Share of Minority Interest & P/L of Associate | (28.5) | -0.1% | (34.5) | -0.2% | -17.4% | (54.1) | -0.2% |
| PAT After Minority Interest & Associate | 3,669.8 | 17.1% | 2,795.5 | 13.2% | 31.3% | 3,029.1 | 11.4% |
| Cash Profit (PAT + Dep. & Amortization) | 6,509.7 | 30.3% | 5,306.4 | 25.0% | 22.7% | 6,392.4 | 24.1% |
| EPSRs- | 8.22 | 6.16 | 6.67 | ||||
| CashEPSRs- | 14.58 | 11.69 | 14.08 |
Declared 2nd Interim Dividend at 400% i.e. Rs. 4/- per equity share in Q3FY21 Paid 1st Interim Dividend of Rs. 4/- per equity share in Nov'20
Awards & Accolades
- ▹ Emami founders, Shri RS Agarwal and Shri RS Goenka, conferred with the "Sanmarg-Lifetime Achievement Award 2020" for their business leadership, innovative strategies, resilient spirit and community initiatives.
- ▹ Emami Group conferred with "Star of the Year Award" for the 2nd time in a row at the 11th edition of "Think CSR 2020 Forum" organized by Tefla's.
- ▹ Navratna won two Bronze Awards under the categories of "Best Use of Mobile – Customer Engagement" and "Amplification" at the 6th edition of Maddies 2020, organized by Exchange4Media mobile marketing awards
Robust growth momentum continues in Q3FY21
| Q3FY21 HIGHLIGHTS | |
|---|---|
| | Net Sales grew by 16%. Revenue from Operations grew by 15%oDomestic Business grew by 16%oInternational Business grew by 26% |
| | Profits & Margins improved during the quarteroGross Profits grew by 19%. Marginsimproved by 210bpsoEBIDTAgrew by 29%. Margins improved by 390bps.oPAT grew by 45%. Margins improved by 460bps. |
| | New Launches in 9MFY21contributed4% ofDomestic salesoEmasol Range of home hygiene products (Floor Cleaner, Toilet Cleaner,Dishwash Gel & Surface Sanitizer), launched during the quarter. |
| | nd Interim Dividend at 400% i.e. Rs.Board of Directors declare 24/-per equity share |
Kolkata, January 27th 2021: The Board of Directors of Emami Limited met on Wednesday, 27th January 2021 to consider the unaudited financial results of the company for the third quarter and nine months ended 31 st December 2021.
Emami continued its growth momentum in the third quarter with an all-round record performance across brands, channels and geographies. Led by a favourable season and a favourable consumption environment, the Company posted a strong growth of 16% in its domestic business led by 13% growth in volumes. The quarter witnessed an all-round growth across major brands; Healthcare Range grew by 38%, BoroPlus grew by 21%, Kesh King grew by 16%, Pain Management Range grew by 12% and 7 Oils in one grew by 32%. Male Grooming range recovered and posted positive growth led by the relaunch of Fair and Handsome Range.
While rural markets continued to perform better, growth in urban markets also picked up. All the channels continued to perform well and posted convincing growth with e-commerce channel growing by 3.5x during the quarter. Modern Trade also registered a strong growth of 51% during the quarter.
During the quarter, the company launched a new brand – "EMASOL" which offers a complete range for home hygiene products. EMASOL is the first Home Hygiene Range to hit the Indian market that apart from killing 99.9% germs, also has BGV24™* advanced antimicrobials action that offers upto 24 Hours protection from virus, germs and bacteria. The company has roped in
International Cricketer - Shikhar Dhawan as the Global Brand Ambassador for its EMASOL Range. Apart from EMASOL range of home hygiene products, the company also launched Zandu Ortho Vedic Oil for knee and joint pain relief. The product is first in its category to provide "7 Days Visible Improvement". Overall, new launches contributed to 4% of Domestic sales in 9MFY21.
The quarter also marked the relaunch of Fair and Handsome with fresh packaging, communication and strategy as Fair and Handsome Radiance Cream and Fair and Handsome Instant Radiance Face Wash. A new differentiated packaging design for Fair and Handsome Facewash was launched in line with Men's Face Wash category codes. Further, a new thematic Campaign – "AB HAR ROZ HANDSOMEGIRI" featuring new brand celebrity superstar Salman Khan was rolled out in mid-November.
The company's International business also grew strongly by 26% led by MENAP and SAARC regions during the quarter. Special focus on immunity boosting products & launch of hygiene range during the ongoing COVID pandemic helped in boosting sales. Further, the strategy of identifying & tapping opportunities in markets with high hair oil usage, with brands like Kesh King & 7 Oils in One paid off well in International markets. The CSD business however declined by 27% during the quarter.
During the quarter, both profits and margins of Emami increased significantly. Stringent cost control measures and benign raw material prices, helped the Company to improve its margins. Gross Margins at 70.4% grew by 210 bps. While EBIDTA grew by 29%, EBIDTA Margins at 36.4% grew by 390 bps. Profits after Tax increased by 45% and PAT margins at 22.4% increased by 460 bps. Cash Profits at Rs. 303 cr also increased by 32% and Cash Profit margins at 32.5% increased by 420 bps.
Mr Mohan Goenka, Director, Emami Limited said:
"We are happy to have continued our growth momentum aided by aggressive growth strategies, dedicated team efforts, quality products and stringent cost control measures. Some of our brands in the healthcare & hygiene range, winter portfolio and 7 oils have done exceedingly well during the quarter, signifying positive consumer sentiment. Rural offtakes continue to march ahead of Urban, which too have started picking up. We are optimistic to close the year not only on a positive note but expect to post a high single digit overall growth."
Mr Harsha V Agarwal, Director, Emami Limited said:
"We are witnessing a consistent and all-round growth coming from all channels over the last two quarters and expect to continue with this growth trajectory. Most of our brands, including power brands & digital-first brands in the healthcare segment are on their growth path.
International business too grew strongly by 26% led by MENAP and SAARC regions during the quarter. Our strategy to focus on immunity boosting and hygiene range of products and tapping opportunities in market with high hair oil usage with our brands paid off well in International markets. Our ad-spends having returned to Pre-COVID levels, we will continue to invest in our existing brand and categories, to increase market penetration where we believe we have a strong Right-to-Win."
About Emami Ltd
Emami: (NSE: EMAMILTD, BSE: 531162) Emami Ltd, founded in 1974, is one of India's leading FMCG Companies engaged in manufacturing & marketing of personal care & healthcare products.
With over 300 diverse products, Emami's portfolio includes trusted power brands like Navratna, BoroPlus, Fair & Handsome, Zandu Balm & Mentho Plus. In 2015, the Company acquired the business of 'Kesh King' and forayed into the Ayurvedic hair & scalp care segment. In, 2019, the company acquired Creme 21, a German brand with strong roots & brand recall. Emami products are available in over 4.5 million retail outlets across India through its network of ~3250 distributors and its global footprint spans over 60 countries including GCC, Europe, Africa, CIS countries & the SAARC.
Emami has maintained a 10% CAGR in topline for the past 10 years through its consistent business performance. Emami is well known for its aggressive marketing powered by celebrity endorsements like Amitabh Bachchan, Pt Birju Maharaj, Shah Rukh Khan, Salman Khan Hrithik Roshan, Shahid Kapoor, Madhuri Dixit, Katrina Kaif, Kareena Kapoor Khan, Yami Gautam, Kangana Ranaut, Shilpa Shetty, Sonakshi Sinha, Shruti Haasan, Juhi Chawla, Vidyut Jamwal, Kartik Aryaan, Varun Dhawan, Milkha Singh, Tiger Shroff, Sachin Tendulkar, Surya, Jr. NTR, Sania Mirza, Saina Nehwal, Bipasha Basu etc over the years.
With a market cap of around Rs. 21,000 cr, Emami Ltd is the flagship Company of the diversified Emami Group. Please visit www.emamltd.in for further information.
For further information, please contact :
Mahasweta Sen | AVP & Head -Corporate Communications Email: [email protected] | Handphone: +919836292392