NEW DELHI: Fast moving consumer goods company Emami Ltd on Friday reported a consolidated net profit of ₹22.75 crore in the March quarter, down 59.4% from the year ago period due to a sharp decline in demand.
Revenue for the March quarter for the maker of Navratna oil and BoroPlus cream stood at ₹532.68 crore, down 16.81% from the same quarter last year.
“The pandemic and the lockdown led to a sharp decline in consumption due to rising unemployment and a significant drop in demand from low-income groups. The pandemic also led the consumer shift towards more essential items like food, groceries and hygiene products thereby affecting the sale of the company’s niche and discretionary line of products," the company said in a statement to the press on Friday.
For the full year, Emami posted a 1.4% decline in FY20 revenue at ₹2,654.88 crore largely on account of sales lost in the March quarter after the covid-induced lockdown temporarily wrecked sales and supply chains for most packages consumer goods companies. International business grew by 16% during the year. Profit for the full year stood at ₹302.30 crore.
Emami has joined other FMCG companies in accelerating launch of health and hygiene products as the industry expects an uptick in demand for such items.
In April, it extended its BoroPlus brand to hand sanitisers, soaps, gels, and hand washes.
“Emami also recognised the importance of health & hygiene, which was the need of the hour and launched BoroPlus advanced anti-germ hand sanitizer in April 2020, bringing an effective product to consumers in the midst of the pandemic during the lockdown. This was followed by the launch of an Ayurvedic Sanitizer under the Zandu brand. The company has also recently expanded BoroPlus range of hygiene products to antiseptic & moisturizing soaps and handwashes in two variants."
Navratna Cool Talc was relaunched in Q4.
“FY20 has been one of the most challenging years for the company. The unprecedented Covid- 19 pandemic brought about an environment where lives were at stake, which led to the already existing soft consumption trends to almost nil," said Mohan Goenka, director, Emami Limited said in the statement.
"The pandemic warranted agility and adaptability to combat the situation while standing in solidarity with our employees, business partners and other stakeholders to ensure safety and precautionary measures for all," he sai
Goenka said despite the covid-led slowdown, strict cost control measures helped improve gross margins and cash profits as well as increase market share of key brands.
“We will continue to innovate both in our existing and new brands to introduce products relevant to the current consumer demand as well as focus on cost management and cash conservation to navigate this unprecedented challenging time," said Goenka.
Emami will launch more products within the health and hygiene categories.