Emami Q4 net profit plunges 45% to 76 cr

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Emami Q4 net profit plunges 45% to Rs 76 cr
Shares of Emami today settled at Rs 978.55 at BSE, up 1.51 per cent from the previous close.

emami-759FMCG firm Emami Ltd today reported 45.16 per cent decline in consolidated net profit at Rs 75.85 crore for the fourth quarter ended March 31, on account of amortisation of Kesh King intangibles.

The Kolkata-based company had reported a net profit of Rs 138.33 crore in January-March a year-ago.
Net sales during the quarter under review was up 21.16 per cent to Rs 668.98 crore as against Rs 552.12 crore of the same period last fiscal.
“PAT, however, was impacted by Rs 73 crore and by Rs 210 crore for Q4 & FY16 respectively mainly because of amortisation of Kesh King intangibles,” the company said.
Emami had acquired Kesh King and allied brands in June for Rs 1,684 crore, which was funded through a mix of internal accruals and debt.
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It further added: “Extended winters were positive for winter brands like BoroPlus, however, this led to an adverse impact on the sales of summer products Q4 FY16. Overall the domestic business delivered a strong topline growth of 23 per cent.”
“In the backdrop of a challenging macroeconomic environment, we are happy to announce the domestic business growth of 23 per cent in the fourth quarter. To augment the same, we are in the process of launching some innovative brand extensions, which we expect to do well in the coming months,” Emami director Mohan Goenka said.
The international business grew by 17 per cent during the quarter and 15 per cent in FY16 despite economic challenges in overseas markets like Russia.
“SAARC & SEA and MENAP regions led by robust growth in Bangladesh and GCC performed well. Most of our Power Brands led by Navratna and Fair and Handsome have performed well and increased their market shares in the overseas markets,” said Emami.
For the full fiscal, Emami reported a consolidated net profit of Rs 359.06 crore, down 26.06 per cent, compared with Rs 485.61 crore in the corresponding period a year ago.
Emami’s net sales for FY16 increased 18.35 per cent to Rs 2,619.29 crore as against Rs 2,213.15 crore.
“We are augmenting our manufacturing capacity as well by investing around Rs 300 crore in our new plant in Guwahati and Assam, which is expected to become operational by FY17,” said Emami director Harsha V Agarwal.
Emami also announced a dividend of Rs 7 per share.
Shares of Emami today settled at Rs 978.55 at BSE, up 1.51 per cent from the previous close.