Dabur Q1 Results: Profit Rises 8%, Margin In Line With Estimates
Dabur's net profit rose 8.26% over the previous year to Rs 494.4 crore during the June quarter, as compared to the street estimate of Rs 496 crore.
Dabur India Ltd.’s first-quarter profit rose in line with analysts' estimates, as easing inflation allowed consumers to spend more on its personal care products.
The Ayurvedic product-maker's net profit rose 8.26% over the previous year to Rs 494.4 crore during the April-June period, according to an exchange filing. That compares with the Rs 496-crore consensus estimate of analysts tracked by Bloomberg.
Domestic volume growth came in at 5.2% versus 4.2% in the preceding quarter.
Dabur India Q1 FY25 Highlights (Consolidated, YoY)
Revenue rose 6.98% to Rs 3,349.1 crore (Bloomberg estimate: Rs 3,343 crore).
Operating profit rose 8.31% to Rs 655 crore (Bloomberg estimate: Rs 661 crore).
Margin expanded to 19.6% versus 19.3% (Bloomberg estimate: 19.8%).
Advertising expenses rose 15.4% to Rs 235.89 crore.
"It's been a good start to the new financial year as we drove sequential recovery in volume growth, driven by rural markets," said CEO Mohit Malhotra. "This allowed us to plough higher investments behind our brands to drive market expansion and sustain our growth momentum."
Dabur's focused approach towards expanding its rural footprint to over 1.22 lakh villages reaped rich dividend as rural demand outpaced urban demand by 350 basis points during the quarter, according to Malhotra. The company launched affordable and rural-specific pack bundles across categories, besides investing in consumer activations in the hinterland.
The company has also been focusing on emerging channels, with modern trade and e-commerce channels now contributing 20% to overall sales.
Dabur's international business grew 18.4% in constant currency terms to Rs 772 crore, driven by Egypt (63.7%), Sub-Saharan Africa (21.4%) and Turkey (18.5%).
Category Growth
Home and personal care grew 8.1% to Rs 1,175 crore, led by shampoo and oral care divisions.
Dabur Red franchise and Vatika grew by 12% each.
Healthcare rose 7% to Rs 620 crore.
Dabur Glucose recorded strong growth of over 30% amid harsh summer conditions, with market share gains of 70 basis points.
The OTC portfolio was impacted by a high base.
Food and beverages grew 4% to Rs 572 crore.
Badshah spices portfolio recorded 15% growth on the back of focused marketing initiatives.
Beverages grew 2.8%, impacted by hot summers.
Dabur gained market share across 95% of its portfolio.
Shares of Dabur rose 1.73% after the results were declared, as compared with a 0.11% gain in the benchmark Nifty 50.
