Fast-moving consumer goods (FMCG) major Dabur India's consolidated revenue is expected to register mid-to-high single-digit growth during the third quarter of the financial year 2024 as pricing growth remained subdued due to price increase in the base year. The homegrown FMCG reported a sequential improvement in demand during the quarter although rural growth trailed behind urban growth.
A significant portion of the FMCG giant's gross margin expansion will be channelled into enhancing advertising and promotion (A&P) spends, the company said in an exchange filing. The company expects the operating profit to grow slightly ahead of the revenue and post an improvement in year-on-year operating margins.
In the India business, the F&B segment is expected to grow in the high-single digits and HPC is expected to record growth in the mid-single digit, the company said. "Because of delay in onset of the winter season, we anticipate the Health Care business to grow in low to mid-single digit."
The company's spice brand Badshah Masala continued to perform well and is expected to post strong volume-led growth in the high twenties. Dabur's international business is expected to register double-digit growth in constant currency terms, led by good momentum in MENA region. "Gross margins are likely to expand, led by moderating inflation and cost-saving initiatives."
Dabur said that it expects a recovery in consumption in both urban and rural markets in the country due to improving macro indicators, increase in government expenditure and positive consumer sentiment.
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