Emami Ltd. , a prominent player in the Indian FMCG sector, has announced plans to introduce 10-12 new male grooming products starting from the second quarter. This strategic move comes in response to a 9% decline in the male grooming segment reported in the company's recent quarterly results.

Quarterly Performance Overview

Emami's latest financial results paint a mixed picture:

Despite the overall revenue decline, the company managed to improve its bottom line, with net profit increasing by 7.6% to ₹164.00 crore.

Segment Performance

The company faced challenges across various segments:

• Male grooming segment: Declined by 9%
• Haircare brand Kesh King: Declined by 5%
• Strategic investments: Reduced by 4%

Revitalization Strategy

Acknowledging the need for brand rejuvenation, Emami's management described the male grooming market as underexploited with significant potential. To capitalize on this opportunity, the company is implementing a two-pronged approach:

1. Expanding 'Smart & Handsome' Line: Emami plans to extend its 'Smart & Handsome' skin brightening cream into other male grooming categories.

2. Reimagining Kesh King: The company aims to revitalize its Kesh King brand to counter the recent decline.

The Man Company: Signs of Recovery

Emami's male grooming brand, The Man Company, showed promising signs by returning to growth in June. This positive development aligns with the company's focus on rejuvenating its male grooming portfolio.

Management's Perspective

Emami's management emphasized the untapped potential in the male grooming market. The planned launch of 10-12 new products in this segment underscores the company's commitment to reversing the recent decline and capturing a larger market share.

As Emami navigates through these challenges and opportunities, the upcoming product launches will be crucial in determining the success of its male grooming segment revitalization strategy.

Emami Limited reported flat revenue growth for the quarter ended June 30, as unseasonably cool weather and early monsoons impacted consumption, particularly in its summer-focused portfolio. Despite these challenges, the company maintained stable financials and saw growth in several key segments.

Revenue and Profit

The company's overall revenue remained largely flat compared to the same quarter last year. However, excluding the talcum powder and prickly heat powder category, Emami's core domestic business delivered a healthy 6% revenue growth and a 3% volume growth.

Profit after tax grew by 9% to INR 164.00 crores, while EBITDA stood at INR 214.00 crores, a marginal decline of 1% with a 20 basis point contraction in margins.

Category Performance

Channel Performance

• Organized Channels: Grew by 6%, with saliency improving by 190 basis points.
• Quick Commerce: Scaled rapidly, growing nearly 3x year-on-year.

International Business

The international business delivered a modest 2% growth despite macroeconomic volatility and geopolitical uncertainty in some key markets. Excluding Bangladesh, which faced challenges, other markets grew by approximately 14%.

Financial Metrics

• Gross Margins: Expanded by 170 basis points to 69.40%.
• EBITDA Margin: Contracted by 20 basis points, primarily due to flat top line.

Strategic Initiatives

1. Product Innovations: Launched Dermicool Prickly Heat spray and new variants under Navratna and BoroPlus brands.
2. Brand Revamps:
   • Smart & Handsome is being extended into other Male Grooming categories.
   • Kesh King is undergoing a strategic transformation.
   • The Man Company is implementing a 360-degree brand revamp.
3. Digital Focus: Amplifying growth on marketplace and quick commerce platforms to drive reach among new-age consumers.

Outlook

Mohan Goenka, Vice-Chairman and Whole-time Director, expressed confidence in the company's strategic positioning: "With our strategic levers of innovation, distribution expansion, digital acceleration, and cost agility firmly in place, we are well-positioned to drive sustainable and profitable growth in the quarters ahead."

The company anticipates gradual improvement in the macro environment, supported by favorable monsoons, stabilizing inflation, and ongoing consumption recovery. Emami remains confident about maintaining margins and does not foresee significant input cost pressures in the near term.

As Emami continues to navigate challenges in certain segments, its focus on innovation and strategic brand transformations aims to drive growth and maintain its strong market position in the coming quarters.