Emami net profits up 3.6% in Q1 2024 as FMCG market recovers 

INDIA—FMCG company Emami Limited has reported a 3.62% increase in net profit to Rs 146.7 crore (US$17.6 million) and a 6.61% increase in operational revenue to Rs 891.24 crore (US$106.9 million) for the first quarter ended March 31. 

Emami achieved volume-led revenue growth in the reported quarter, which was spearheaded by improved performance in the rural consumer goods market.  

The FMCG company’s total income increased by 6.14% in the reported quarter to Rs 901.90 crore (US$108.15 million). 

The company reported an 8% valuation growth in its domestic business wing, which reported a 6.4% increase in sales volume. Emami’s international business wing recorded a 9% valuation growth, primarily driven by the Middle East and North African region.  

However, the company’s total expenses increased by 7% to Rs 680.26 (US$81.6 million) for the reported quarter.  

Emami partly attributes this strong performance to its product diversification strategy. 

“Overall, the company launched more than 50 products and variants in the domestic and international market in FY24, with the majority being Digital first products,” the company said in a statement. 

Emami also attributes its strong showing in the reported quarter to recovering rural demand. 

Mohan Goenka, Emami’s Vice Chairman and Whole-Time Director, said, “It is encouraging to witness signs of recovery with rural gradually bouncing back. Our contribution from organized channels has increased to 26% of our domestic business from 22% in FY23.” 

High inflation significantly affected demand in the FMCG sector, especially in rural areas. Consumer goods players grappled with diminished sales over the last few quarters as consumers became more frugal.  

However, rural demand depression began showing signs of recovery in Q4 2023, with the FMCG sector recording a 5.8% increase in sales volume compared to a 6.8% increase in urban areas, according to NielsenIQ. Urban consumption outgrew rural consumption by 3.8 and 6.2 percentage points in the previous three quarters. 

Emami expressed optimism about future growth in its outlook, reiterating the FMCG sector is supported by government initiatives and a recovering macroeconomic environment. 

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