Emami reports 8% jump in Q3 profit, ad expenses up 6% to Rs 175.7 crore
According to Emami, urban demand faced headwinds in Q3, influenced by rising food inflation and liquidity constraints in retail and wholesale trade channels
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Skincare brand Emami Ltd reported an 8 percent rise in its profit in the third quarter of fiscal year 2025. According to the official statement of the company, Emami posted Rs 279 crore of profit between October and December in fiscal year 2025. The ad and sales expenses of Emami increased by 6.03 percent YoY in Q3 to Rs 175.73 crore.
The revenue from the operation of the company surged to Rs 1,049 crore, up 5 percent year-on-year in Q3. The Earnings Before Interest, Taxes, Depreciation, and Amortization (EBITDA) of the company jumped by 8 percent to Rs 339 crore in the same period.
According to Emami, urban demand faced headwinds in Q3, influenced by rising food inflation and liquidity constraints in retail and wholesale trade channels. Conversely, rural demand showcased resilience, buoyed by favorable monsoon conditions and a robust harvest, providing a silver lining amidst market uncertainties. However, the delayed onset of winter impacted seasonal categories, adding another layer of complexity to an already dynamic market environment.
On the distribution front, the company said that modern trade, e-commerce, and institutional sales contributed 28.6 percent of the domestic business.
"I am pleased to announce a healthy 9% growth in our core domestic business, driven by a healthy 6% increase in volume in Q3FY25. This marks the second quarter with high single-digit growth, coupled with expansion in both Gross margins and EBITDA margins despite rising input costs across the sector. Our targeted distribution strategies for new-age channels have played a vital role in driving success across the business. Strategic initiatives for Kesh King and male grooming along with the expected revival of International Business, position us confidently for sustained, robust growth going ahead. These results reaffirm our confidence in the positive outlook for FY25 and our steadfast commitment to delivering long-term value to our stakeholders," Harsha V Agarwal, vice chairman and managing director said.
