I apologise I did not understand your question. National brands, FMCG brands in most cases beat Private label in almost every aspect over long term…there may be some one off cases where private labels are more successful over long term…can you highlight such cases…
is anyone tracking bector foods…it is in uptrend after almost the half the price of ipo premium
I should have phrased my question differently. I wanted to know whether any company achieved above average growth trajectory both in terms of sales and margins by going online route like ITC seems to be trying through ITC eStore. Curious to know whether ITC is modelling on any success story out side of India.
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i am sure it can do 105 crs pat in fy24e and with target pe 30x … mcap doable is 3000 crs … current price looks good to add … margins ebitda will be between 14-15%
Notes from Q3 concall iro EMAMI Ltd-
- Sales at 972 cr, up 4pc…due very high base of last FY. Two year CAGR at 9 pc. India business volume growth was flat. Brand wise sales growth-
Boroplus - 2 pc due channel loading in Sep ( Sep to Dec growth at 9 pc )
Pain management - 7 pc
Navratna - 11 pc
7in1 oil - 5 pc
Kesh King - Flat
Male grooming - (-) 3 pc
Healthcare - 2 pc
Immunity - Double digit de growth due high base
- Channel wise growth -
Modern trade - 14 pc
E Comm - 75 pc
A total of 16 pc of domestic sales are coming from these two new age Chanels now
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International business - Grown by 7pc, translates into a 2 yr CAGR of 16 pc. Excluding immunity and hygiene, intl business grew by 14 pc during the Qtr. Growth was led by Srilanka and Bangladesh. MENA sales were flat. CIS sales saw a decline due higher base.
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Gross margins declined by 300 bps to 67 pc. EBITDA at 342 cr was flat but grew 14 pc over a two year CAGR basis. PAT at 220 cr grew by 5 pc.
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For the 9m period, sales up 13 pc. EBITDA at 788 cr, up 9pc. PAT at 483 cr, up 31 pc. Cash profit at 734 cr, up 13 pc.
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Company announced a buyback of shares upto 10 pc of shares capital at price upto Rs 550 per share. Over and above, declared an interim dividend of Rs 4 / share.
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Male grooming mkt saw a steep decline due pandemic as ppl did not step out much plus the schools, colleges were shut. EMAMI maintained a two yr CAGR of 1 pc in the male grooming segment. As the mkt now opens up, company plans to go hyper aggressive in this segment. Have signed up Salman Khan for Fair and Handsome.
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Company has launched 2 digital brands - Imported creme 21 from Germany and Kesh King onion oil.
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Input cost pressures are moderating in Q4. ( I am not sure of the impact on Input costs post the Russia - Ukraine conflict as it has led to a huge spike in Crude prices )
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Most of the growth in boroplus range is coming from Vassocare, Body lotions and other brand extensions. The core anti septic creme was flat …more or less. ( I don’t think that’s a bad outcome as long as the brand extensions keep growing … specially the Boro Plus Vassocare and Body lotion ). Company has also launched a Rs 10 Boroplus soap in the rural Mkts and is getting good response on the same.
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Balms are showing super normal growth. Have been entering new households due pandemic induced awareness, marketing efforts and newer variants launched by the company. Seeing good growth in January as well.
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There was pressure on Navratna Oil for the last 2 yrs due to its cooling properties as ppl were averse to the same due pandemic. Going fwd, growth in Navratna oil should pick up. 7in 1 and Kesh King continue to do well.
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Zandu cough syrup continues to do extremely well. In Jan too, it did really well.
Disc : not holding, planning to take up a tracking position
Emami has announced acquisition of “Dermicool” a leading brand in Prickly Heat Powder and Cool Talc category from Reckitt Benckiser Healthcare (India) Pvt for Rs4.32bn. This move funded by internal accruals will make Emami a market leader in cool talc category.
Prabhudas Lilladher believes that the move is positive, but not a game changer as it does to change the seasonality impact in the company.
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Hi
I am not very well versed with writing on this forum.
In this context TCPL should be on watch list as company has been consistently gathering Brands under this umbrella (recently from Tata Coffee)
Starbucks collaboration is also doing good.
All brands (Samapan, Soulful etc) doing good.
Company plans to come out with Ice Tea (in competition with juices) which would be a healthier choice.
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I was just doing some exercise to see FMCG performance over the last couple of decades. It was astonishing to see that in the last 22 years an equal-weight portfolio of top FMCG companies delivered only two negative years
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Why nestle is not there?
I wasn’t able to fetch data as far as 2001
If you have it I can add to the above list quickly. Nevertheless, Nestlé would have definitely improved or atleast kept the results similar.
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it would definitely improve it. I was just wondering if you have some solid reason to exclude nestle or u don’t categorize it under FMCG.
There could be discrepancies.
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10th Apr23 —FMCG sector outlook --CNBC Interview --Parle Foods ( Mayank Shah ) & other analyst tracking FMCG sector :
–seeing steady recovery since 1/2 Qtrs post softening of demand last year especially during 2nd and 3rd Qtr so Multiple reasons behind that —there is recovery in Rural which is aiding the overall demand , Urban demand was was strong and Rural is now improving since 1 to 1/2qtr
–In terms of no.s low single digit growth in rural India last year ( I.E fy22) but today we are seeing 5 to 6% demand growth in Rural India. Urban is growing at 7/8% continues ot grow since last year, this is all Volume growth.
–Strong double digit growth in Q4 which is improvment on Q3 as after the festive period there was tapering of demand & in Q4 categories we track have shown positive growth with only personal care category being flattish
–Key levers in Q4 is start of summers and Beverages see a spike in this Qtr. Beverages is up on a very strong base last year & on that basis its a positive side. Rural growth is 16.8% and Urban is 7.9% growth & total is 14.1% --This is due to 2 things --summer products stocking has happened & Kirana base in rural has grown up by almost 9.9% which is a great sign.
–Kantar’s Ramakrishnan : Report till January23 was subdued , the recovery is there in Urban & Rural is crawling its way up and not as good as urban
–Agriculture ministry —we will have bumper crop this year despite unseasonal rains, we might see some disruption but we will still get 112 Mn tons we will get. US data is projecting 107 Mn tonnes wheat for India & our own Parle data 102/103 Mn tons. In anycase even if we have 102 Mn Tonns we are safe on food security and its a little less than 104 Mn Tonns last year.
–Rural consumption has gone up , Wheat prices are higher than MSPs and its a positive sentiments. Demand in rural is good.
–Bizom’s Akshay D’Souza : Mar23 --overall growth for Mar was 3.6% over last year but 2 categories didnt do that well i.e Beverages was flat and Personal care was not that good. Packaged food / home care grew by double digit & its coming more stronger in from rural segment.
–Kantar’s Ramakrishnan : Impact of inflation --studied 6k households —discretionary spends have been impacted , staples have remained constant but consumers are believeing that price increases are softening and that is showing in uptick in consumption & its strongly showing in Urban
–Beverages saw good growth in last 2 yrs and hence its showing a bit tepid growth this time.
–Urban growth is primarily by premium products and growth is led by premiumisation and in rural its led by basic products.
–Pack sizes are moving to higher value & more premiumisation in personal care. Even in Dairy there is a shift towards value added products.
( Pardon the spelling mistakes , had to note down while analysts were speaking )
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Hi everyone,
I am researching Emami Ltd.
- I would like to know the headwinds it is currently facing in the FMCG industry. As in why slow growth? Recent results show that volume growth is 2%. Your insights will be helpful.
- Also, share thoughts on management if possible.
Thanks. Looking for pointers from senior investors or from someone who is following the company.