• Financial performance: Emami posted 15% overall revenue growth supported by a 20% rise in domestic business and ~8% like-for-like volume growth, while EBITDA grew 5.5% amid a ~390 basis point gross margin contraction caused by high crude-linked input and packaging costs.
• International business recovery: International revenue declined by 12% due to West Asia geopolitical disruptions, supply chain delays, and inflation in markets like Bangladesh, but management expects a rebound in the second half driven by price adjustments and reduced promotional schemes.
• Pricing and margins: To counter input cost inflation, the company plans to implement additional moderate price increases rather than aggressive hikes, aiming to defend profitable growth despite lingering gross margin contraction.
• Strategic acquisitions: The strategic investments portfolio, including recent additions like Axiom Ayurveda and IncNut, achieved 61% like-for-like growth and is near break-even, with management expecting it to generate positive earnings within the next two to three years while continuing to scout for new targets.