Dabur India Q1 results: Net profit surges 7.8% to ₹500 crore, revenue at ₹3,349 crore

Dabur India Q1 results: Net profit surges 7.8% to ₹500 crore, revenue at ₹3,349 crore/Mint

MINT | August 1, 2024 | 04:22 PM IST | Breaking News | Follow on Google News

Dabur India Q1 results: Net profit surges 7.8% to ₹500 crore, revenue at ₹3,349 crore

Dabur India Q1 results: Net profit surges 7.8% to ₹500 crore, revenue at ₹3,349 crore

FMCG giant Dabur India reported a consolidated revenue of ₹3,349.11 crore for the June quarter, marking a 7 percent year-on-year increase from ₹3,130 crore. The company also recorded a net profit of ₹500.12 crore, up by 7.8 percent year-on-year.

Margins saw a slight improvement, reaching 19.6 percent compared to 19.3 percent a year earlier. The company achieved a domestic volume growth of 5.2 percent in the June quarter, driven by a sequential recovery in rural volume growth.

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“It’s been a good start to the new financial year as we drove sequential recovery in volume growth, driven by rural markets, to report industry-leading performance across our key verticals. This allowed us to plough higher investments behind our brands to drive market expansion and sustain our growth momentum,” Dabur India Limited, Chief Executive Officer, Mohit Malhotra said.

Despite facing a challenging demand environment due to high food inflation and unemployment rates, the company achieved a robust 8.3% growth in operating profit, showcasing the resilience of its business model.

“Through disciplined execution of our go-to-market strategy, we continued to capitalise on our brand strength and deepen engagement with our consumers. Ourfocussed approach towards expanding our rural footprint to over 1.22 lakh villages reaped rich dividend as rural demand outpaced urban demand by 350 bps during the quarter. To cater to this wider network, we have expanded our product basket with the launch of newer affordable and rural-specific pack bundles across categories, besides investing in consumer activations in the hinterland to establish a better connect with our consumers,” Malhotra added.

Segment-wise growth

International business: Dabur’s international business achieved an 18.4% growth in constant currency terms. The Egypt segment saw a growth of nearly 64%, Nigeria experienced a 181% increase, Sub-Saharan Africa grew by 21.4%, and the MENA region reported a 13% growth.

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Category growth: Driven by the increasing demand for our flagship Dabur Red Paste and the premium brand Meswak, Dabur’s toothpaste business achieved a 12% growth during the quarter. The 100% fruit juice portfolio expanded by 21%, and the carbonated fruit drinks portfolio surged by 90%. Our digestives business saw an 11% increase. The shampoo portfolio grew by 13.7%, while the health supplements business posted a 7% growth. The foods business experienced a 21.3% rise. The recently acquired Badshah business grew by a solid 15%.

Dabur reported market share gains across 95% of its portfolio. Odomos gained 518 basis points in market share, and the J&N portfolio improved by 330 basis points. Additionally, Dabur recorded a 194-basis-point increase in the air freshener market share, while Dabur Red Paste gained 15 basis points.

MINT