Domestic fast-moving consumer goods (FMCG) major Dabur India Ltd. reported organic domestic volume growth of 4%, which was similar to CNBC-TV18's poll projection that ranged between 4% and 5%. The company's volume growth including Badshah came at 6%.
The FMCG major reported a net profit of ₹514 crore for the October to December period, which was equal to CNBC-TV18's poll of ₹515 crore. The same was ₹476.7 crore in the corresponding period of last year.
Dabur India's revenue for the third quarter stood at ₹3,255 crore, up 7% as against ₹3,043 crore in the same quarter a year ago. It was driven by steady performance of both the Home and Personal care and Food and Beverages businesses. Revenue stood at ₹3,043 crore in Q3 of 2022-23. The third quarter revenue growth stands at 10% on constant currency basis.
The company reported an EBITDA of ₹667.6 crore during the third quarter, up 9.4% from ₹610 crore in the same quarter last year, while margin expanded by 5 basis points to 20.5%.
Category growth
Category-wise, Dabur's digestives business ended the quarter with an over 15% growth while the Ayurvedic Ethicals business grew by nearly 7% in Q3. Dabur's Shampoo and Post-Wash category reported an over 11% growth.
The Toothpaste business ended the quarter with an industry leading over 8% jump, backed by Toothpaste Volume growth of 5%. The Home Care business reported a 7% growth while the Beverages business returned to the growth trajectory and ended the quarter with a 7% growth. Our Foods business, including Badshah, ended the quarter with a 22% growth.
International business
Dabur's international business reported a growth of 11.7% in constant currency terms. The Nigeria business grew by 52%, while the Turkey business was up 44% and the Egypt business ended with a 43% growth.
"We remain intensely focused on our strategies of managing an agile and accountable organization structure with a focus on superior product delivery and constructive disruption to drive sustainable, profitable growth across our portfolio. Moderating inflation coupled with buoyant consumer sentiments and our focussed investment in distribution footprint expansion in rural India helped demand from the hinterland bounce back for Dabur. Rural demand for Dabur grew 200 bps ahead of urban. We have also stepped-up investment behind our brands to drive competitive volume growth, reflected in our higher advertising spends during the quarter," said Dabur India Chief Executive
Officer Mohit Malhotra.
"We have been investing in growing our rural footprint, which has expanded by 17,000 villages in the current fiscal from 100,000 to 117,000. We are working towards ending this year with a rural coverage of 1.2 lakh villages. Dabur's rural distribution has, in fact, been the highest in the industry, giving us a distinct advantage and helping drive our rural growth," Malhotra added.
The company, in its quarterly business update last month, projected mid- to high-single-digit growth in its consolidated revenue for the third quarter ended December 31, as demand for its consumer goods in rural areas continued to lag urban regions and pricing growth remained subdued.
The company, too, cited the delay in the onset of the winter season for its low- to mid-single-digit revenue forecast for its healthcare segment, while it said it expects its home and personal care (HPC) segment to record mid-single-digit growth.
Post the earnings announcement, shares of Dabur India Ltd were trading 1.17% higher at ₹542.20 apiece on the NSE.
First Published: Jan 31, 2024 2:55 PM IST
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