Tag: Emami

Emami to acquire remaining 4.64% stake in subsidiary Brillare Science

KV Prasad Jun 13, 2022, 06:35 AM IST (Published)

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Indian FMCG player Emami Ltd on Wednesday (March 27) said it will acquire the remaining 4.64% stake in its subsidiary, Brillare Science Pvt Ltd.

“This to inform you that Emami Ltd holds 95.36% in the paid-up capital of its subsidiary company, Brillare Science Pvt Ltd (Brillare). The company has further entered into Share Purchase Agreement with the founder & other shareholders of Brillare for acquiring a remaining stake of 4.64 % of that company,” the company said in a stock exchange filing.

With this acquisition, Emami’s shareholding in Brillare has increased from 95.36% to 100%, making Brillare a wholly-owned subsidiary of Emami Limited.

Brillare Science Pvt Ltd is a professional beauty care company that offers a range of products in skin, hair, and body care. The company’s products are sold directly to consumers (D2C) and are also available through a professional salon network. Brillare Science Pvt Ltd owns the popular brands Brillare and Root Deep.

The financial terms of the deal, including the price of the shares, have not been disclosed. Emami clarified that Brillare is a subsidiary and a related party. None of the promoter, promoter group, or group companies have any interest in Brillare Science Pvt Ltd, it said.

Shares of Emami Ltd ended at ₹436.45, up by ₹0.90, or 0.21%, on the BSE.

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Emami expects high single digit revenue growth in FY24, better margins

KV Prasad Jun 13, 2022, 06:35 AM IST (Published)

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Emami reported its consolidated financial results for the July-September quarter of fiscal year 2024. The company’s net profit was almost flat year-on-year (YoY) at around ₹180 crore. Total revenue grew 6% to ₹864.47 crore largely due to the company’s efforts to expand its brand portfolio and enhance core brand equity through various channels, including modern trade, e-commerce, and general trade.

EBITDA (earnings before interest, tax, depreciation, and amortisation) grew 20% over last year to ₹234 crore with margin improving 300 basis points year-on-year to 27%. One basis point is one-hundredth of a percentage point. Gross margins expanded 350 basis points to 70.1%.

NH Bhansali, the company’s CEO-Finance, Strategy & Business Development, told CNBC-TV18 that the upcoming winter season is expected to boost sales significantly.  “Winter products account for 60% of sales. We now have the winter setting in, and we expect by the end of this month, that winter should be in full swing and should help improve our offtakes further,” he said.

The top winter products for the company are Boroplus and Chyavanprash.

Revenue growth should be in the high single-digit

Despite the challenges over the past two quarters, such as issues with rural offtakes, inflation, geopolitical situations, and international business disruptions, Emami was able to demonstrate a 4% growth in the domestic market and a constant currency growth of 16% in the quarter. The company expects high single-digit revenue growth for fiscal year 2024.

The company is also factoring in a price rise of around 3% for the fiscal year, with the remaining growth being driven by increased volumes.

The EBITDA margin for the year is expected to improve by 200 basis points.

In September, brokerage firm Citi upgraded its rating on Emami to ‘buy’ with a revised target price of ₹600 citing improving demand conditions and benefits from investments made toward long-term strategic initiatives. Shares of the company ended the day (November 7) at ₹512 apiece.

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KV Prasad Journo follow politics, process in Parliament and US Congress. Former Congressional APSA-Fulbright Fellow

Stocks to Watch: Adani Green Energy, Infosys, Piramal Pharma, Bharti Airtel, Chola Investment Fin and more

KV Prasad Jun 13, 2022, 06:35 AM IST (Published)

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Thursday’s filing dispelled some doubts, though Musk still has work to do. He and his advisers will spend the coming days vetting potential investors for the equity portion of his offer, according to people familiar with the matter

KV Prasad Journo follow politics, process in Parliament and US Congress. Former Congressional APSA-Fulbright Fellow

Emami enters health juice segment with 26% stake in Axiom Ayurveda

KV Prasad Jun 13, 2022, 06:35 AM IST (Published)

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In a strategic move aimed at diversifying its product portfolio, FMCG major Emami Ltd on Thursday (September 28) announced its entry into the juice category.

Emami has achieved this expansion through a significant investment in Axiom Ayurveda Pvt Ltd and its associated companies, acquiring a 26 percent equity stake in the company, the financial details of which remain undisclosed.

Axiom Ayurveda markets a range of beverage products under the brand name, AloFrut. Its juices are a nutritious blend of aloe vera pulp and other fruits. Aloe vera is renowned worldwide as a rich source of essential vitamins, minerals, and amino acids. The AloFrut brand offers a selection of unique flavours.

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While AloFrut is a cornerstone of Axiom Ayurveda’s business, the company also boasts a distinctive line-up of carbonated beverages, including mocktails and energy drinks. Additionally, Axiom Ayurveda has a presence in the ayurvedic healthcare juice segment under the Jeevan Ras brand.

To support its growing product line and meet increasing demand, the company operates its manufacturing facility in Ambala, Haryana.

Further, Axiom Ayurveda is actively investing in the future, with plans to establish a cutting-edge, fully automated facility in Jammu’s Kathua district, at an investment of Rs 160 crore.

AloFrut has already established a robust presence in various market segments, including general trade, government institutions, modern trade, and e-commerce platforms.

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Harsha V. Agarwal, Vice Chairman and MD of Emami Ltd, said, “We are delighted to announce our partnership with Axiom Ayurveda through a strategic investment in equity. This marks our entry into the juice category with AloFrut.”

Rishabh Gupta, Founder of Axiom Ayurveda Pvt Ltd said, “It is exciting to have Emami come on board as a strategic partner with wide industry experience who shares our vision to make Alofrut a leader brand.”

Shares of Emami Ltd ended at Rs 515, up Rs 3, or 0.59 percent, on the BSE.

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KV Prasad Journo follow politics, process in Parliament and US Congress. Former Congressional APSA-Fulbright Fellow

Delhi High Court grants interim relief to Emami in packaging dispute with Dabur over ‘Thanda Tel’

KV Prasad Jun 13, 2022, 06:35 AM IST (Published)

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The Delhi High Court has issued a temporary order prohibiting Dabur from selling its product, Dabur Cool King Thanda Tel, in packaging that bears a stark resemblance to Emami’s Navratna. The case titled “Emami Limited v Dabur India Limited” resulted in an interim decision, reported Bar and Bench.

The ruling, by Justice C Hari Shankar on August 9, said that there is a preliminary indication that Dabur deliberately imitated key aspects of Emami‘s product to tap into the market that Emami had cultivated since 1989. This move by Dabur raises concerns over potential infringement and unfair competition, it said.

“When one sees the two bottles, they are similar in shape, the slight difference in the two shapes being so imperceptible as not to impress itself on an average customer. The oil contained in both bottles is red in colour. The use of red colour for oil is also, in my opinion, lifted from the red oil which is used by the plaintiff,” said the court as reported by Bar and Bench.

The court was addressing a lawsuit brought forth by Emami, asserting that they have been marketing Navratna oil since 1989, whereas Dabur’s Cool King was introduced to the market in May 2023, and this fresh offering bore a disconcerting resemblance to Navratna.

The essence of the argument revolved around Dabur’s alleged infringement upon Emami’s trademark, design, and copyright, thereby potentially constituting an act of passing off.

During the legal proceedings, the court extensively examined the packaging of both products, available in both bottle and sachet forms, as well as Dabur’s oil advertising practices.

Justice Hari Shankar keenly observed that Dabur’s efforts were overtly directed at making its product closely resemble Emami’s oil, with a clear intention to befuddle average consumers.

In response to Dabur’s proposed revised packaging, the court, represented by Justice Hari Shankar, dismissed the notion that this alteration would eliminate any infringement concerns, indicating that the revised packaging could still be considered infringing in nature.

Subsequently, the court issued summon pertinent to the lawsuit and pronounced an interim order. The case has been slated for further hearing on October 10 before the joint registrar, aiming to conclude the process.

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KV Prasad Journo follow politics, process in Parliament and US Congress. Former Congressional APSA-Fulbright Fellow

Emami Q1 results: Profit after tax grows 88.1%, summer portfolio declines 5% due to unseasonal rains

KV Prasad Jun 13, 2022, 06:35 AM IST (Published)

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Homegrown FMCG (fast-moving consumer goods) company Emami Ltd on Monday reported a Profit After Tax of Rs 137.7 crore for the April-June quarter of FY24 after it registered a growth of 88.1 percent. This is considerably higher than the Rs 72.69 crore reported in the same quarter of the previous financial year.

The total revenue of the company came in at Rs 825.66 crore, rising 6.8 percent from Rs 773.31 crore in the year-ago quarter, the company said in a regulatory filing.

Earnings before interest, tax, depreciation, and amortization (EBIDTA) for the quarter was at Rs 190 crore, growing by 9.6 percent. The EBIDTA margin was at 23 percent and grew by 60 basis points YoY.

“We are happy to report a 7 percent growth in domestic business despite the challenging operating environment. While erratic summer and unseasonal rains impacted summer product offtakes, our non-summer portfolio grew strongly by 16 percent,” said Harsha V Agarwal, Vice Chairman and Managing Director.

The domestic business, excluding the summer portfolio sales, grew 16 percent. In a press release, Emami said the comprehensive growth of the domestic business in Q1FY24 reached 7 percent. The summer portfolio experienced a 5 percent decline during the quarter, attributed to the adverse impact of unseasonal rains.

Modern trade and e-commerce continued to perform well, growing by 45 percent and 47 percent, respectively, over the previous year. Emami’s international business grew by 8 percent during the quarter with a constant currency growth of 11 percent led by strong growth in the SAARC, GCC and CIS regions. From the product perspective, Emami’s pain management range, healthcare range, and BoroPlus grew strongly in double digits while Dermicool posted a high single-digit growth. The Kesh King and male grooming range, being discretionary in nature, posted a muted growth

The company also concluded a buyback of its shares amounting to Rs 185.3 crore (excluding brokerage, taxes, and levies).

Shares of Emami, after it reported its earnings, were trading at Rs 460, up 2.21 percent from the previous close on the NSE.

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KV Prasad Journo follow politics, process in Parliament and US Congress. Former Congressional APSA-Fulbright Fellow

Expect good growth from base correction and acquisitions in FY24: Emami CFO NH Bhansali

KV Prasad Jun 13, 2022, 06:35 AM IST (Published)

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Emami Chief Financial Officer (CFO) Naresh Bhansali expects good growth from base correction and acquisitions in financial year (FY) 2023-2024. Sales were higher due to COVID-19 and so the base correction has already happened, the top official told CNBC-TV18 on Friday.

“The growth in the fourth quarter ended March 31, 2023 (Q4FY23) came in at 9 percent and the base correction for the immunity products has happened in the past in the last quarter and also in the previous quarters because of COVID-19, there has been a higher sales, so the base correction has already happened,” Bhansali noted.

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On top of it, the CFO expects normalised growth from these products and also the summer and winter are expected to be normal for the current financial year. “So, we expect a good growth to come in FY24. And coupled with growth from acquisitions kind of Dermi Cool, and also our subsidiaries where we have already invested, they are also firing a good growth,” he said.

As per Bhansali, the international business, which has delivered 19 percent growth in this quarter is expected to deliver the same kind of growth in FY24 as well.

He further noted that the company expects a good growth from the “Kesh King”, as in the past year, the oil sector had been muted as a category but now it has started looking up. “We expect single digit volume growth in Kesh King as well, which would be coupled with oil and the shampoos, and there are many other interventions, which we are taking in the Kesh King portfolio itself,” he stated.

Emami on Thursday reported a 60 percent year-on-year decline in consolidated profit after tax at Rs 142 crore in the March quarter. Revenue from operations, meanwhile, surged 8.8 percent to Rs 836 crore in the quarter under review.

Emami reported an EBITDA (earnings before interest, tax, depreciation and amortisation) of Rs 223.6 crore for the quarter under review, which is up 19.5 percent over the previous year’s quarter. Meanwhile, margins during the quarter came in at 26.8 percent versus 24.4 percent.

Emami said the FMCG industry witnessed a mixed demand environment in Q4FY23, as discretionary categories like personal care continued to remain muted on account of reduction of nonessential expenditure by rural consumers.

The company also announced buyback of shares worth up to Rs 186 crore, up to a price of Rs 450.

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Share price of Emami closed 4.37 percent higher at Rs 400.30 apiece in Friday’s trade, a day after company reported its March quarter earnings.

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KV Prasad Journo follow politics, process in Parliament and US Congress. Former Congressional APSA-Fulbright Fellow

Emami Q4 profit tanks 60% to Rs 142 crore amid high inflation, revenue up 9%

KV Prasad Jun 13, 2022, 06:35 AM IST (Published)

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Homegrown FMCG (fast-moving consumer goods) company Emami Ltd on Thursday posted a 60 percent year-on-year (YoY) decline in consolidated profit after tax (PAT) at Rs 142 crore in the January to March quarter as against Rs 354 crore in the same quarter a year ago. The company will buy shares worth up to Rs 186 crore, up to a price of Rs 450, it said in a regulatory filing.

Revenue from operations surged 8.8 percent at Rs 836 crore as compared to Rs 768.2 cr on-year in the corresponding quarter of last fiscal.

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Emami reported an EBITDA (earnings before interest, tax, depreciation and amortisation) of Rs 223.6 crore for the quarter under review, which is up 19.5 percent over the previous year’s quarter. Meanwhile, margins during the quarter came in at 26.8 percent versus 24.4 percent.

The FMCG industry witnessed a mixed demand environment in Q4FY23, as discretionary categories like personal care continued to remain muted on account of reduction of nonessential expenditure by rural consumers.

“Despite challenging demand scenario on account of high inflation, muted rural sentiments and unseasonal rains, we have delivered a resilient profit led growth in Q4FY23. After few quarters of ongoing pressure on input costs, we have been able to expand our Gross & EBIDTA Margins delivering 20 percent EBIDTA growth,” said Harsha V Agarwal, Vice Chairman and Managing Director at Emami.

“Our strategic investments and Dermicool acquisition have performed well and contributed to this growth. We will continue to make significant investment behind our core brands, innovations, channel expansions and digital optimisations which are expected to contribute immensely to future growth,” Agarwal said.

International business grew by 19 percent during the quarter despite high inflation, currency depreciation and geopolitical challenges in several key markets. The growth was mainly driven by strong performances in markets of MENA, CIS and Bangladesh.

Ahead of the results, Emami stock closed 1.50 percent lower at Rs 383 apiece on the NSE. The shares fell 11 percent on a year-to-date basis, but it rose 5 percent in the last one month.

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Thursday’s filing dispelled some doubts, though Musk still has work to do. He and his advisers will spend the coming days vetting potential investors for the equity portion of his offer, according to people familiar with the matter

KV Prasad Journo follow politics, process in Parliament and US Congress. Former Congressional APSA-Fulbright Fellow

Emami shares drop after company approves share buyback via open market route

KV Prasad Jun 13, 2022, 06:35 AM IST (Published)

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FMCG company Emami has approved a buyback of equity shares at its board meeting held on Friday.

The company will buyback up to 41.3 lakh equity shares or 0.94 percent of the existing paid up equity capital of the company via the open market route. Total consideration for the buyback would be Rs 186 crore.

An open market buyback is where the company actively buys shares from sellers on the exchanges. Unlike a tender offer, it is not of a fixed duration and an even last for a few months.

The maximum buyback price has been fixed at Rs 450 per share. However, it is not compulsory for the company to buyback shares at that price since it is an open market buyback.

At least 75 percent of the amount earmarked or Rs 139.5 crore will be utilised as the maximum buyback size. Based on this, the company would buyback at least 31 lakh shares. 40 percent of that sum, or Rs 74.4 crore, would be utilised within the initial half of the six months of the buyback opening.

The board has also constituted a buyback committee who will oversee the process. Post the buyback of shares, the promoter’s share in the company will go up to 54.78 percent from the current 54.27 percent. The actual shareholding pattern post buyback may vary depending upon the actual number of equity Shares bought back under the buyback.

Companies usually go for the share buyback either to improve their valuations and earning per share (EPS) or reward shareholders. The company in February had paid a second interim dividend of Rs 4 per share to shareholders following a similar interim dividend of Rs 4 in November last year.

Shares of Emami are trading 0.7 percent lower at Rs 361.40.

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Thursday’s filing dispelled some doubts, though Musk still has work to do. He and his advisers will spend the coming days vetting potential investors for the equity portion of his offer, according to people familiar with the matter

KV Prasad Journo follow politics, process in Parliament and US Congress. Former Congressional APSA-Fulbright Fellow

Emami shares recover from 52-week low ahead of board meeting for share buyback

KV Prasad Jun 13, 2022, 06:35 AM IST (Published)

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Shares of leading personal care and healthcare products manufacturer Emami Ltd gained as much as 6 percent on Wednesday ahead of the company’s board meeting on March 24 to consider a share buyback proposal.

Emami on Tuesday informed bourses that its board of directors is scheduled to meet on Friday, March 24, to consider a proposal for buyback of fully paid-up equity shares of the company.

Companies usually go for the share buyback either to improve their valuations and earning per share (EPS) or reward shareholders. The company in February had paid a second interim dividend of Rs 4 per share to shareholders following a similar interim dividend of Rs 4 in November last year.

Emami’s net sales rose by 2 percent to Rs 975 crore in the December quarter over a year ago as demand patterns for the FMCG sector remained sluggish, with rural markets experiencing continued demand pressure.

Its EBITDA at Rs 294 crore declined by 14 percent in the December quarter over the previous year. Profit after tax at Rs 237 crore grew by 8 percent over previous year.

Shares of Emami are trading 6 percent higher at Rs 365.85. The stock has declined 15 percent so far this year and 22 percent over the last 12 months. The stock had closed at its 52-week low on Tuesday.

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Thursday’s filing dispelled some doubts, though Musk still has work to do. He and his advisers will spend the coming days vetting potential investors for the equity portion of his offer, according to people familiar with the matter

KV Prasad Journo follow politics, process in Parliament and US Congress. Former Congressional APSA-Fulbright Fellow