Badshah Masala will consolidate from January onwards, says Dabur India
Homegrown FMCG major Dabur India Ltd on Thursday reported a decline of 5.51 percent in its consolidated net profit to Rs 476.55 crore for the third quarter ended December 2022, as inflationary pressures impacted consumption.
Dabur India, a leading consumer goods company in India, is looking to consolidate its Badshah Masala brand in January, according to CEO Mohit Malhotra. The revenue from Badshah Masala is estimated to be in the range of Rs 240-250 crore with a 20 percent margin.
“Badshah Masala is in the range of around Rs 240 crore to Rs 250 crore in the fiscal year-close and margins are in the range of around 20 percent broadly and we are doing the budgets,” he said.
Homegrown FMCG major Dabur India Ltd on Thursday reported a decline of 5.51 percent in its consolidated net profit to Rs 476.55 crore for the third quarter ended December 2022, as inflationary pressures impacted consumption.
The company had posted a net profit of Rs 504.35 crore in the October-December quarter a year ago, Dabur India said in a regulatory filing.
Also Read | Consumption slows compared to September quarter, rural volumes under pressure: NeilsenIQ update
However, its revenue from operations rose 3.44 percent to Rs 3,043.17 crore during the quarter under review against Rs 2,941.75 crore in the corresponding quarter of the previous fiscal.
Dabur India's total expenses rose 5.63 percent to Rs 2,523.09 crore in the latest December quarter. It was Rs 2,388.53 crore in the year-ago period.
The company has also decided to exit its baby care portfolio, which has exit rates of around Rs 20 crore.
Malhotra also announced that Dabur India is planning to enter the carbonated fruit drinks segment by summer. The CEO expects the company to be back to its pre-COVID levels of margin in the 2023-24 financial year. Despite the challenging operating environment in the third quarter, the company has gained market share in 90 percent of its portfolio.
Rural business has grown in November and December and continues to grow in January. However, Malhotra pointed that consumers are down trading, which is why the company's volume has decreased by 3 percent. He also stated that the company's advertisement flows are in line with its top line.
On a compound annual growth rate (CAGR)-basis, Malhotra expects to see volume growth of 5-6 percent going forward.
With inputs from PTI
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