Dabur India - Destocking Drags Sales, Margins; Portfolio Pressure Intensifies: Systematix

NDTV Profit’s special research section collates quality and in-depth equity and economy research reports from across India’s top brokerages, asset managers and research agencies. These reports offer NDTV Profit’s subscribers an opportunity to expand their understanding of companies, sectors and the economy..Systematix Research Report.Dabur India Ltd. issued a quarterly business update for Q2 FY25. The company undertook a significant one-time inventory correction in general trade (general trade, ~80% of sales) in its India business (~75% of revenue) to improve distributor return on investment. Consequently, management expects Q2 FY25 revenue decline in mid-single digits (Q2 FY24: +7% YoY, Q1 FY25: +7% YoY) and Ebitda decline in mid/high teens (Q2 FY24: +10% YoY, Q1 FY25: +8% YoY) due to operating deleverage and sustained investments in A&P/ brand building. This implies Q2 FY25E operating margin decline of ~200-300 basis points YoY (Q2 FY24 OPM: 20.6%, Q1 FY25: 19.6%). Dabur saw double-digit CC growth in its international business (~25% of revenue; Q2 FY24: +24% YoY). In food and beverage (~20% of India sales), beverages (Q2 FY24: -10% YoY, q1 FY25: +3% YoY) were impacted by lower out-of home consumption amid heavy rains and floods in parts of the country, while Badshah Masala delivered double-digit sales growth. Management sees the GT destocking as essential for long-term health of the business. Dabur expects revenue growth to revive from October 2024 with streamlined GT and strong growth in alternate channels..Click on the attachment to read the full report:.NMDC - H2 FY25 To Have Price, Volume Recovery: Yes Securities.DISCLAIMERThis report is authored by an external party. NDTV Profit does not vouch for the accuracy of its contents nor is responsible for them in any way. The contents of this section do not constitute investment advice. For that you must always consult an expert based on your individual needs. The views expressed in the report are that of the author entity and do not represent the views of NDTV Profit..Users have no license to copy, modify, or distribute the content without permission of the Original Owner.

Dabur India - Destocking Drags Sales, Margins; Portfolio Pressure Intensifies: Systematix

The brokerage acknowledges positives for Dabur such as market share gains, aggressive innovation etc; however, persisting issues in key segments limit the stock’s growth and valuation potential.

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Dabur India - Destocking Drags Sales, Margins; Portfolio Pressure Intensifies: Systematix

The brokerage acknowledges positives for Dabur such as market share gains, aggressive innovation etc; however, persisting issues in key segments limit the stock’s growth and valuation potential.

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