Emami q-o-q ad and sales promo spend down 44 per cent in Q4-2014

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By Tarachand Wanvari Posted on : 07 May 2014 06:50 pm

BENGALURU:  In keeping with its norms, Indian personal and healthcare company Emami Limited (Emami) Advertisement and Sales Promotion (Ad & SP) spend during the last quarter of FY-2014 was the lowest during the year. In Q4-2014, Emami Ad & SP at Rs 49.53 crore was  down (–43.64) per cent as compared to the Rs 87.85 crore in the immediate trailing quarter Q3-2014 and just a meagre 1.18 per cent more than the Rs 48.95 crore in the year ago quarter – Q4-2013.

Notes: (1) 100,00,000 = 100 lakh = 1 crore = 10 million.

(2) All trends mentioned in this report are linear trends based on data across nine quarters starting Q4-2012 and ending Q4-2014 and across FY-2012 to FY-2014.

At 11.11 per cent of net sales, Emami’s Q4-2014 Ad & SP percentage of net sales was the third lowest over a nine month period starting Q4-2012 and ending Q4-2014. The lowest corresponding figure over the nine quarters was in Q4-2012 at 9.19 per cent of net sales (Rs 36.60 crore). During Q3-2014, Ad & SP as percentage of net sales was 15.03 per cent and during Q4-2013 it was 10.85 per cent (second lowest).

In terms of absolute rupee value terms, Emami’s Ad & SP Exp trends upwards, while in terms of percentage of net sales, it shows a downward trend. Also, in Q1-2013, and Q1-2014, Emami’s Ad& SP Exp was 18.72 per cent (second highest over nine quarters) and 18.85 per cent (highest over nine quarters) respectively of net sales.  If the company follows these norms, Q1-2015 should see a substantial increase in Ad & SP Exp as percentage of net sales. Please refer to Fig 1 and Fig 1A below.

 

Emami’s PAT and net sales across the quarters under consideration and the three financial years FY-2012 to FY-2014 trends upwards as per Fig 2 and Fig 2A below.

Among the brands in the company’s portfolio are Zandu, Zandu Balm, Himani Navratna, BoroPlus, Fair and Handsome, Emami Vasocare, Emami Mentho Plus, Himani Fast Relief, Zandu Sona Chandi Chyawnprash Plus, Zandu Kesari Jivan, etc.

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