Flair Writing Ind 3rd quarter results hit by disruptions overseas

Mumbai-based Flair Writing Industries Limited (FWIL), one of the leading players in the writing instruments industry, reported a muted third quarter, blaming disruptions in some of its export markets for the decline in revenue and profit.

For the third quarter ended December, the company posted consolidated revenues of Rs. 225 crores, down 3% year-on-year. Net profit declined 43% to Rs. 19 crores. For the nine months period, revenues grew 7% to Rs. 729 crores while net profit was flat at Rs. 84 crores.

The company attributed the muted third quarter performance to challenges in its OEM and export segments. Demand from FWIL’s OEM partners in developed economies was impacted by the economic slowdown and geopolitical tensions. Exports also suffered due to the ongoing Red Sea crisis.

“Revenue from our own brands remained our shining stars growing in both domestic & exports market throughout the year. Majority of our own brands experienced double digit growth; year to date, in domestic market thus going from strength to strength,” said the company.

However, FWIL’s domestic brands segment continued its strong run, delivering double-digit growth across most brands. Flagship brands like Flair, Pierre Cardin and Hauser performed particularly well during the festive season quarter, signaling the strong brand equity FWIL has built over four decades of operations.

An important positive for the company was the expansion of its product portfolio. 30 new products were introduced in the third quarter across different brands, taking the total new product launches for the nine month period to over 100. This is the highest number of new product introductions by FWIL since FY21 and demonstrates its focus on innovation.

The management struck a hopeful note regarding the demand scenario improving in coming quarters, especially on the OEM and exports front. FWIL is also exploring new export markets to diversify its geographic mix. On the domestic front, the foray into the steel bottles segment holds exciting potential.

“We have decided to enter the domestic market through modern trade and the initial response looks very promising. We’ve also applied for BIS license for our steel bottles and are awaiting results for the same,” it added.

On the operational front, the company widened its distribution network by adding 11 super-stockists in the third quarter. The total super-stockists count now stands at 156. To drive sales growth, 36 new members were added to the marketing and sales team pan-India.

Commenting on the results, FWIL’s Managing Director Vimalchand Rathod said “The quarter was a mixed bag with challenges on the OEM front and positives in our brands as we took some important business decisions. We remain very upbeat on the prospects of our steel bottles segments and have set our eyes towards new horizons in exports.”