Emami Limited · NSE:EMAMILTD
Emami — Shareholder Meeting (August 2024)
35 slides from Emami's shareholder meeting presentation, Aug 27, 2024
Slide 1: Chairman's Speech at the 41st Annual General Meeting (filing letter)
27th August, 2024 The Manager - Listing The Manager - Listing The National Stock Exchange of India Ltd. BSE Limited Exchange Plaza, Plot No. C/1, G. Block Phiroze Jeejeebhoy Towers Bandra Kurla Complex, Bandra (E) Dalal Street Mumbai – 400 051 Mumbai – 400 001 Scrip Code: EMAMILTD Scrip Code: 531162
Slide 2: Chairman Speech: Introduction
emami 2 EMAMI LIMITED Shri R. S$. Goenka CHAIRMAN SPEECH INTRODUCTION — AT THE CUSP OF AN EVENTFUL PAST AND AN EXCITING FUTURE Every journey has a story to narrate, while every new day evokes new hopes and aspirations. The year 2024 is a milestone year for us at Emami as you are perhaps aware, that
Slide 3: Chairman Speech: Emami's journey
emami EMAMI LIMITED narrative of business — it is a story about the power of unity, the courage to dream, and the relentless hard work required to transform those dreams into reality. Innovation, differentiation, and vision for growth have always been the cornerstones of Emami'’s journey. They playe
Slide 4: Collaborating for a Viksit future
emami EMAMI LIMITED As we celebrate brand Emami’s journey of 50 years, we take this moment to look forward to the next 50 years. The journey ahead is going to be charted by our ethos of our commitment towards our consumers, our investors, our employees and all other stakeholders to continue with our
Slide 5: FMCG industry and Emami's FY24 performance
emami EMAMI LIMITED — premiumization and innovation being the buzzwords. The domestic FMCG Industry has grown at a 5 year CAGR of around 11% in FY24 and is estimated to grow in strong double digits in the coming years on account of rising levels of disposable income, changing lifestyles, increased u
Slide 6: FY24 performance and challenges
emami EMAMI LIMITED revealing that 38% of households were significantly affected. Weak monsoon conditions necessitated increased MGNREGA spending on wages, signalling deeper income challenges in rural India. Furthermore, unseasonal rains in the first quarter impacted the sales of our summer portfoli
Slide 7: Non-seasonal brands and distribution
emami EMAMI LIMITED You will be happy to note that Emami is in a very interesting space today. From our primarily rural market skewed approach, we have expanded ourselves to a universal character where along with our rural market optimization, we are also present in a space where a section of consum
Slide 8: D2C and strategic investments
emami EMAMI LIMITED Consumer, popularly known as D2C_ by launching brand specific portals and also launching — Digital First Products under major brands. The result is evident in the fact that Emami’s domestic revenue contribution from organised channels increased from 12% to 26% in five years. As a
Slide 9: Project Khoj and international business
emami EMAMI LIMITED inception, displaying a commitment to diversification and innovation. Increased distribution through Project Khoj expanded coverage to over 20,000 rural towns since its launch, which have contributed more than 15% of direct rural sales. This expansion was digitized and geocoded,
Slide 10: Staying invested; cash-rich and zero-debt
emami EMAMI LIMITED At Emami, we have always believed on long-term vision of staying invested. Therefore, throughout the past year, we continued to stay invested judiciously into every other aspect of our business — be it our digital initiatives, global business, R&D innovation, new launches, operat
Slide 11: Sustainability initiatives
emami EMAMI LIMITED We believe in sustainable growth and have consistently worked to reduce our carbon footprint. Notably, we achieved a 12% reduction in absolute energy consumption in FY24 compared to FY22. Additionally, our reliance on renewable energy increased, contributing 19% to our total ener
Slide 12: CSR and shareholders
emami 2 EMAMI LIMITED and sanitation, and healthcare. Over the past five years, we have contributed more than 246 crore towards CSR initiatives. OUR SHAREHOLDERS - THE VALUED PARTNERS Dear Shareholders, your unwavering support and trust have been the cornerstone of our success throughout the years.
Slide 13: The beginning of FY2025
emami 2 EMAMI LIMITED THE BEGINNING OF FY 2025 In QIFY25, the country witnessed one of its hottest summers, boosting a healthy demand for summer products but dampening both sales of non-summer products and _ out-of-home consumption. Further, as you are aware, increasing food inflation continued to i
Slide 14: Roadmap ahead
emami nO EMAMI LIMITED years Our brands like Navratna, Dermicool, Healthcare range, 7 Oils in One, The Man Company, Brillare, and BoroPlus continue to perform well. Further, gross margins at 67.7% expanded by 230 basis points in Q1. EBIDTA at Rs 216 crore grew strongly by 14%, despite strong investm
Slide 15: Conclusion
emami nO EMAMI LIMITED years initiatives, and promising macroeconomic factors, all contributing to a confident outlook for sustained positive performance. CONCLUSION The world today is going through a critical phase of change that comprise geopolitical tensions, climate change along with rapid techn
Slide 16: 41st Annual General Meeting
41st Annual General Meeting 27th August 2024
Slide 17: The founding vision
The founding vision Emami’s initial product Pivotal decision in the early 70’s by Mr. RS Agarwal Some of the earlier range – Talcum Powder & and Mr. R S Goenka to quit their corporate jobs and popular brands of Vanishing cream lay the foundation of ‘Emami’ Emami. 2
Slide 18: Key Milestones
Key Milestones 1978 1982 1989 1995 2005 Listed on Launch of Launch of Launch of the Bombay BoroPlus Fair and Navratna Stock Acquisition of Antiseptic Handsome Cool Oil Exchange Himani Ltd Cream 2008 2015 2018 2019 2022 Acquisition of Zandu Acquisition of Strategic Investments Acquisition of Acquisit
Slide 19: Celebrating the shared success
Celebrating the shared success Employees Consumers & workers Investors Regulatory Community bodies 4
Slide 20: Collaborating for a 'Viksit' future
Collaborating for a ‘Viksit’ future • Committed to partner towards shaping a ‘Viksit’ Bharat • Building a future facing Organization • Focus on innovation & adoption of modern technologies • Committed towards contributing for a sustainable world • Staying rooted in Indian tradition and principles 5
Slide 21: Key Growth Drivers of Indian FMCG Industry
Key Growth Drivers of Indian FMCG Industry Rising disposable Premiumization Changing Incomes lifestyles Increased Innovation Surge in urbanization eComm & D2C 6
Slide 22: Macro environment in FY24
Macro environment in FY24 Summer products Late onset of winters Indian Households still feeling the heat of inflation demand impacted by impacted the sale of winter unseasonal rains products Inflation sensitive Least & indifferent Impacted outlook Least sensitive & Moderately 24% positive outlook Im
Slide 23: FY24 Performance
FY24 Performance Revenues Gross Profit A&P Spends EBIDTA PBT PAT ₹ 3,578 cr ₹ 2,418 cr ₹ 652 cr ₹ 950 cr ₹ 791 cr ₹ 724 cr Growth Growth Growth Growth Growth Growth +5% +10% +16% +10% +18% +13% EBIDTA Margins (%) PBT Margins (%) 30.7% 30.1% 21.6% 22.1% 26.0% 25.3% 26.5% 19.8% 19.7% 14.1% FY20 FY21 F
Slide 24: Evolving Business Landscape
Evolving Business Landscape Contribution of Share of sales of Contribution of Domestic Revenues Acquired brands to Domestic Revenues from from seasonal products overall Revenues^ organized channels* 49% 26% 22% 46% ~ 45% 12% 44% FY20 FY23 FY24 FY20 FY23 FY24 ^Includes sales of Zandu, Kesh King, Crem
Slide 25: Strategic Investments
Strategic Investments Subsidiaries Associates 10
Slide 26: FY24 NPDs: Domestic
FY24 NPD’s: Domestic 35+ Domestic New launches in FY24 11
Slide 27: Deepening rural penetration
Deepening rural penetration 15% of direct rural sales achieved from newly activated Strengthening rural coverage coverage towns through Project KHOJ Rural Coverage expanded by >20k Sales towns; ~75k Rural outlets added growth of 52,000 30% in FY24 32,000 Rural expansion getting digitized and geocode
Slide 28: International Business
International Business 12% 9% ₹ 100 cr+ FY24 Growth FY24 Growth FY24 Sales of in Constant in INR Terms 7 Oils in One Currency 15 ~ 67% New launches Localized in FY24 manufacturing 13
Slide 29: Rewarding Shareholders
Rewarding Shareholders ₹8.0 800% 349 cr Total Dividend Dividend % in ₹ Total Dividend 48% Paid in FY24 Payout on PAT FY24 payout in FY24 ₹ 230 cr 46.5 lac Dividend + Buyback Shares Outlay of Total outlay acquired for Buyback of shares (incl. through Buyback in 80% tax) in FY24 on PAT FY24 14
Slide 30: ESG Initiatives
ESG Initiatives Energy Consumption Renewable Energy Water Consumption Water Recycling 12% 19% 17% 11% reduction of total energy reduction increase over FY22 consumption over FY22 over FY22 Circular Economy Emissions 100% 10485 MT 9% compliant with Plastic Recycled reduction in Scope 1 + 2 EPR Regula
Slide 31: Community welfare
Community welfare Key Focus Areas 5.7 lac Community lives touched in FY24 Education Hunger Social & Rural Promotion of Arts, empowerment Mitigation community development culture & sports ₹46 cr CSR spends in last 5 years Disaster Management Animal welfare Water & Sanitation Healthcare 16
Slide 32: Sustained wealth creation
Sustained wealth creation QIP (2009) Public Issue (2005) Maiden Issue (1980) 17
Slide 33: Q1FY25 Performance
Q1FY25 Performance Margins Domestic Domestic Int’l Int’l Business Business Business Business Gross Margins (volume) (value) (CC) (INR) +10% +230 bps +8.7% +11% +10% A&P Spends +190 bps Consolidated Material A&P Spends EBIDTA Margins Revenues Costs +21% +90 bps +10% +3% PBT Margins +160 bps EBIDTA PB
Slide 34: Road ahead
Road ahead Focus to grow revenues in Keep generating adequate Keep scouting for double digits with robust cash flows to reinvest in our acquisitions & Strategic margins business Investments 19
Slide 35: Thanks to all our stakeholders for unwavering support
Thanks to all our stakeholders for unwavering support 20