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Jyothy Labs reports 21% YoY decline in net profit in Q1; sales jump 21%

Unlike most FMCG results so far, the company reported a jump in profit and sales, sequentially.

July 29, 2021 / 04:49 PM IST
 
 
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FMCG player Jyothy Labs reported a 20 percent decline in its net profit for the first quarter ended June (Q1, FY22) to Rs 40 crore as compared to Rs 50 crore reported in the year-ago period. The company, however, registered a 21 percent climb in its sales for the quarter to Rs 525 crore. Its sales in Q1, FY21 stood at Rs 433 crore.

Unlike most FMCG results so far, the company also reported a jump in profit and sales, sequentially. It had reported Rs 495 crore in sales in Q4 FY21 and Rs 27 crore in profit.

According to K Ullas Kamath, Joint Managing Director, Jyothy Labs, the company doubled its spending on advertising for the quarter while its margins took a hit due to the price rise, impacting its bottomline for the quarter.

“Our topline, however, reflects that our efforts such as appointing sub-stockists in rural areas, production of relevant SKUs, the introduction of low-unit packs for the rural areas have paid off,” added Kamath.

Jyothy Labs reported Rs 63.3 crore EBITDA (Earnings Before Interest, Taxes, Depreciation, and Amortization) in Q1 as compared to Rs 76.5 crore reported in the year-ago period.

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Segment-wise, the company witnessed double-digit growth across fabric care and dishwashing segments. Fabric care sales increased by 27.5 percent for Q1 FY22 over the same period last year. The segment, the company informed, has seen improvement in sales with easing of mobility during the quarter as compared to previous quarters.

Dishwashing sales increased by 22 percent in Q1, supported by increased in-house consumption, augmented emphasis on hygiene, and strong distribution focus across all channels, according to the company.

Other categories such as household insecticides witnessed a growth of 12.7 percent, while personal care sales went up by 13.5 percent during the quarter.

“The seasonal sales have been satisfactory this quarter which has been aided with preventive measures towards health by consumers. We have launched our ‘Fit all Machines’ Liquid Vaporiser Bottle, which has further enhanced the brand value for Maxo and highlighting its unique offerings,” the company said.

Channel-wise, the company informed that modern trade stores and canteen stores department continued to witness disruptions due to localised lockdowns. Jyothy Labs has boosted its presence across general trade and e-commerce in the wake of the pandemic and said these efforts have helped it tide over the period.
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