Emami's ad spend drops 35.45% in Q2, net profit rises 30.8%

The maker of Zandu, Navratna, and other personal care brands booked a profit of Rs 214.10 crore in Q2 FY 25 compared to Rs 163.58 crore in the corresponding quarter of last fiscal year.

By  Storyboard18Nov 8, 2024 7:11 AM
Emami's ad spend drops 35.45% in Q2, net profit rises 30.8%
According to Emami, brands like Navratna, Dermicool, and the Healthcare range and Pain Management range performed well in Q2

Personal care brand Emami has reduced its spending on advertisement and sales promotion massively on a quarterly basis. The maker of BoroPlus has slashed its ad spending by 35.45 percent to Rs 94.29 crore in the September quarter compared to Rs 146.09 crore in the June quarter of FY 2025.

On a yearly basis, Emami spent Rs 103.88 crore on advertisement and sales promotions activities in Q2 FY 24.

According to the standalone financial result of the company, Emami registered a rise of 30.8 percent in its net profit in the second quarter of FY 25. The maker of Zandu, Navratna, and other personal care brands booked a profit of Rs 214.10 crore in Q2 FY 25 compared to Rs 163.58 crore in the corresponding quarter of last fiscal year.

The company's consolidated profit stood at Rs 211 crore between July and September 2024 compared to Rs 180 crore in Q2 2023.

According to Emami, brands like Navratna, Dermicool, and the Healthcare range and Pain Management range performed well in Q2.

HUL, Marico, Godrej trim ad spending in Q2 FY25 to counter inflationary pressures Mohan Goenka, Vice Chairman and Whole-Time Director of Emami said that the company's organized channels like 'Modern Trade, e-Commerce, and Institutional sales' have contributed 26.6 percent to its domestic business, a 190-basis point increase in the first half of FY 25.

Emami reported overall revenues at Rs 891 crore grew by 3 percent with domestic business growing by 2.6 percent.

In a stock exchange filing, Emami Ltd said that Quarter 2 brought several challenges at the macro level, such as food inflation, global political unrest, including in Bangladesh. However, Emami said that international businesses achieved a 12 percent sales growth, excluding Bangladesh.

"Our international business demonstrated resilience despite geopolitical challenges, delivering double-digit growth, excluding Bangladesh. Besides the good performance of our existing brands, strategic investments and the recent launch of 11 new domestic products are set to boost consumer confidence and drive double-digit revenue growth in the second half," Harsha V Agarwal, Vice Chairman and Managing Director, Emami Limited said.

Further, in Q2 FY 25, Emami increased stake in Helios Lifestyle (The Man Company) from 50.4 percent to 98.3 percent.

Emami's stock closed at Rs 674.90, down 1.55 percent, on Monday afternoon.

First Published on Nov 8, 2024 7:09 AM

More from Storyboard18

How it Works

CCI raids could accelerate shift from “media muscle” to “strategic agility”, writes indie ad agency Famous Innovations founder

CCI raids could accelerate shift from “media muscle” to “strategic agility”, writes indie ad agency Famous Innovations founder

Advertising

Hypothesis by OML wins Influencer Marketing mandate for Ather Energy

Hypothesis by OML wins Influencer Marketing mandate for Ather Energy

Advertising

Reliance Consumer Products unveils campaign for 'Independence' brand, tapping into deep-rooted culinary traditions

Reliance Consumer Products unveils campaign for 'Independence' brand, tapping into deep-rooted culinary traditions

How it Works

SEBI’s ID mandate for intermediary ads welcomed, but industry seeks stronger AI oversight

SEBI’s ID mandate for intermediary ads welcomed, but industry seeks stronger AI oversight

Brand Marketing

Global Ads Spotlight: Gatorade turned city streets into sports playgrounds with bold 'Turf Finder' campaign

Global Ads Spotlight: Gatorade turned city streets into sports playgrounds with bold 'Turf Finder' campaign

How it Works

Sports AdEx up 7% in 2024 to reach Rs 7,989 cr: GroupM

Sports AdEx up 7% in 2024 to reach Rs 7,989 cr: GroupM

Advertising

Decathlon Sports India's ad expenses up 33% to Rs 87.49 crore in FY24

Decathlon Sports India's ad expenses up 33% to Rs 87.49 crore in FY24

Brand Marketing

ChatGPT hits one million users in an hour as Ghibli maker free image generation goes live

ChatGPT hits one million users in an hour as Ghibli maker free image generation goes live