Emami's Advertisement Expenses Increased By 24%

FMCG company Emami's advertisement and sales promotion expenses for the quarter ended 30th June have increased 24% to Rs 136.3 crore from Rs 109.8 crore in the corresponding quarter of the previous fiscal. In the trailing quarter, the company spent Rs 149.47 crore on advertisement and sales promotion.

The company’s advertisement and sales promotion expenses grew by 90 bps to 17.5% of total sales compared to 16.6% in Q1 FY22. The company conducted a host of marketing activities to shore up the sales of its key brands like Navratna, Kesh King, Fair and Handsome, BoroPlus, Zandu, and Dermicool. 

The company's net sales grew by 17.4% to Rs 768 crore against Rs 654.2 crore in Q1 FY22. EBITDA grew 2.1% to Rs 173.3 crore from Rs 169.7 crore. Net profit was down 6.6% to Rs 72.6 crore from Rs 77.7 crore.

Sales for Navratna grew by 29% during the quarter. The company launched Rs 20 bridge packs for Navratna Oil (27 ml) and Navratna Cool Talc (30 gm). It tapped into new-age consumers through digital marketing initiatives like – Short Video format activities, Contextual advertisements across platforms, and Brand integration in both national and regional content. 

In the pain management segment, sales for Zandu branded products declined by 30% on a high base of 70% growth in the previous year. The key focus for the company was to drive prominence and visibility at chemist outlets in key markets. It also improvised brand assortment and conversion through dedicated chemist-led visibility inputs. The company undertook direct consumer connections for Zandu Ortho Vedic Oil through samplings at fairs and festivals. 

Kesh King's sales grew by 20%. The company launched a 30 ml bridge pack at Rs 49/- for Kesh King Oil to increase penetration. For the Kesh King shampoo sachet, the company conducted focused distribution drives and large-scale sampling. The sachet contribution to shampoo sales increased to 10% in Q1FY23 compared to 4% in Q1FY22. It also conducted on-ground activations to improve brand visibility & recall.

The sales in the Male Grooming segment (Fair and Handsome) grew by 32%. The company launched a Fair and Handsome Cream 30gm shelf-ready pack of 6 pcs to drive key functional benefits (7 hr. Brighter Look) at the point of sale. Modern Trade Visibility, Consumer offer, Digital Communication, and Chemist Channel activation programs were conducted for Fair and Handsome Facewash. 

Sales growth remained flat for BoroPlus over the previous year. The company said new products like BoroPlus Aloe Vera Gel and BoroPlus Soap are performing well. It launched a new variant of BoroPlus Aloe Vera Gel: 100% Organic BoroPlus Aloe Vera Gel with Green Tea.

In the Healthcare Range, sales declined by 25% on a high base of 59% growth in the previous year. According to the company, the immunity portfolio declined significantly due to higher sales in the base quarter due to the 2nd wave of the pandemic. It launched Zandu Stevia (Meethi Tulsi), Zandu Bone Care Juice and Zandu Vitality Booster juice on Zanducare. 

Dermicool contributed to 8% of Domestic sales in Q1FY23. The company's marketing initiatives in the pipeline include imagery revamp with superior brand repositioning, industry benchmark claims on pack & communication supported with marketing investment to connect with new consumers, launch of new pack sizes to drive trials & increase penetration, and geography and channel expansion drives.

The international business of the company was up 45% led by MENA & SAARC. The company said all its major brands - 7 Oils in One, Navratna, Fair and Handsome, Kesh King and BoroPlus - performed well.