Kolkata: FMCG major Emami Ltd on Monday reported a six per cent decrease in its consolidated net profit to Rs 56.09 crore in the fourth quarter of the financial year 2018-19, as compared to the Rs 59.73 crore earned in the corresponding quarter of the previous fiscal.
The company's revenue from operations for the quarter under review at Rs 639.64 crore was up by 4 per cent, from Rs 616.97 crore in the year-ago period.
During the fourth quarter, the company's domestic business was impacted due to "a prolonged winter affecting the sales of summer products like cool oils, talcs and deodorants", the company said.
"Weak rural sentiment and adverse liquidity conditions also impacted demand during the quarter. Despite these challenges, the company closed the quarter with net sales of Rs 635 crore, which grew by 5 per cent. In 2018-19, however, net sales at Rs 2,659 crore grew by 7 per cent," it said.
Domestic business grew by 3 per cent during the quarter in question owing to "muted growth of summer brands" while its non-summer brands grew in double digits.
"An extended winter pushing back the onset of summer has adversely impacted the performance of our summer portfolio which contributes over 40 per cent to the fourth quarter topline.
"The agrarian crisis too moderated the rural growth. While modern trade registered an encouraging growth of 33 per cent, channel liquidity in the domestic market has been another speed breaker this quarter," Emami Director Mohan Goenka said.
The Kolkata-headquartered company also said net sales in the international business grew by 19 per cent during the quarter led by "a strong performance in SAARC and MENAP regions".
During the quarter, gross margin at 60.8 per cent and EBIDTA margin at 24.2 per cent declined by 440 basis points (bps) and 390 bps, respectively, due to an increase in raw material costs.
Emami Ltd Director Harsha V. Agarwal said: "Challenging operating environment and general sluggishness in demand across sectors, especially rural over the past few quarters restricted our growth for FY19 (2018-19) to single digit."