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Informist, Tuesday, Oct. 1, 2024

 

--Dabur India: Heavy rain, floods hit consumer offtake in Jul-Sept

--Dabur India: Heavy rain, floods hit out-of-home consumption in Jul-Sept 

--Dabur India: Corrected general trade distributor inventory to improve RoI

--Dabur India: See mid-single-digit decline in Jul-Sept consol revenue

--Dabur India: See double-digit constant currency topline growth in intl ops

--Dabur India: Badshah Masala business grew in double digits in Jul-Sept

 

MUMBAI – Dabur India Ltd. expects its consolidated revenue for the Jul-Sept quarter to fall by mid-single digit, the company said in an exchange filing Tuesday. The fast moving consumer goods major expects profitability for the quarter to be impacted by lower primary sales.

 

The company's decision to correct distributor inventory in the general trade channel would lead to a temporary decline in the topline, it said. Dabur India's decision to correct inventory was taken owing to a 'disproportionately' higher growth in the organised channels, namely, modern trade, e-commerce, and quick commerce.

 

The temporary impact of this move on Dabur's topline is essential for the long-term health and hygiene of its business, the company said in the quarterly update. Dabur expects its international business to register double-digit constant-currency growth in revenue for the September quarter. Dabur's Badshah Masala business grew in double-digits in the Jul-Sept period.

 

Dabur's operating margin for the quarter is expected to decline in the range of mid-to-high teens due to deleverage and continued investment behind its brands. Dabur continued to incur advertising and promotion expenditure spend to support its brands. Dabur increased advertising and promotion spends to 7.4% of sales in 2023-24 (Apr-Mar) from 6.1% a year ago, as per its annual report for the previous fiscal.

 

Heavy rains and floods across parts of India impacted out of home consumption and consumer offtake in Jul-Sept which impacted Dabur's business, especially the beverage category.

 

Dabur reported a 7% on-year growth in Apr-Jun consolidated revenue to INR 33.5 billion while its constant currency revenue increased 10%. Dabur's consolidated profit grew 8% on year to INR 5 billion. Dabur's India FMCG business volume grew 5.2% in Apr-Jun. Dabur's score on the Dow Jones Sustainability Index (DJSI) increased to 81 from 72, the company said.  End

 

Reported by Anand JC

Edited by Ashish Shirke

 

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