More Stories

Informist, Thursday, Jan. 30, 2025

By Narayana Krishna and Alina Geogy

HYDERABAD/MUMBAI - Fast-moving consumer goods company Dabur India Ltd. reported a consolidated net profit of INR 5.22 billion on revenue of INR 33.55 billion for the December quarter, up 1.6% and 3% on year, respectively. Both figures were in line with analysts' expectations.

The company saw a recovery in its net profit compared to the September quarter, when the net profit had fallen over 17% on year. However, the net profit growth for the December quarter is still poor, the slowest rise in net profit since the June quarter of 2022. 

On the sales front, the company posted a sequential recovery, but year-on-year growth was muted at just 3%. Analysts had estimated Dabur India's net profit at INR 5.07 billion on revenue of INR 33.54 billion. Sequentially, the company's net profit was up nearly 23% and revenue was up nearly 11%. The company's Oct-Dec earnings are mostly in line with the company's quarterly update.

Spending on advertisements was slightly lower than analysts' estimates, falling to INR 2.27 billion from INR 2.45 billion a year ago. "In a quarter marked by high food inflation, continued moderation in urban demand and a strong resurgence in rural markets, Dabur continued to build consumer engagement across its key brands in rural India with a focus on driving sustainable, profitable long-term growth," the company said in a press release.

The company's revenue growth during the quarter was 5.6% in constant currency terms. Its consolidated operating profit was up 2.1% on year at INR 6.82 billion and the operating profit margin was marginally down at 20.3%.

Dabur's international sales rose 19% on year in constant currency terms to INR 8.47 billion in the December quarter, led by growth in sales in Egypt, West Asia and North Africa, the US, and Bangladesh. The volume of the company's fast-moving consumer goods in India grew 1.2% in the December quarter, while its value grew 1.7%. The company's premium portfolio grew 2.5-3.0 times faster than its overall business in India.

SEGMENTAL PERFORMANCE

Consolidated sales from Dabur's consumer care business, which contributes the most to total revenue, rose to INR 28.50 billion in the December quarter from a year ago. Consolidated revenue from the food business, which has the second-highest contribution to total sales, fell to INR 4.30 billion in the December quarter from a year ago.

With respect to various verticals within the company's domestic FMCG business, sales of food products rose 30% on year in the December quarter, while sales of beverages fell 10% on year. Home and personal care, which contributes a bulk of the domestic business, rose 6% on year. However, sales of the health care vertical, another key contributor, declined 1.3% on year. Dabur said it gained market share across 95% of its portfolio in India, led by hair oil products, for which the market share grew by 150 basis points. The company's total market share in hair oils is now at the highest ever at 18%. 

Among other products in the home and personal care segment, sales of oral care products rose 9% in the December quarter. The company's Dabur Red toothpaste franchise and Meswak toothpaste performed well and continued to gain market share and its portfolio of gels in the 'freshness' segment posted double-digit growth.

Among other home care products, the volume of home and air freshening brand Odonil grew in double digits, with Aerosol and Gel pockets performing well. The company's market share in air fresheners rose around 101 bps. Meanwhile, the mosquito repellent brand Odomos reported a muted performance on account of a slowdown in the category. Sales of toilet cleaning product Sanifresh rose in double-digits during the quarter.

Within the food and beverages segment, sales of Badshah Masala business rose 15% in the December quarter. This business, which produces and sells blended and ground spices, saw volumes grow in double digits and also clocked a gain in market share, the company said. Sales of health supplements fell 3.4% in the December quarter as unfavourable weather affected the portfolio, the company said. The company's Chyawanprash product continues to strengthen its market leadership by gaining market share by 139 bps, the company said.

Meanwhile, sales of digestive products rose 4% in the December quarter. The digestive tablet, Hajmola, recorded mid-single digit growth in both its candy and tablet formats. Extensions and variants of Hajmola now contribute over 15% to the Hajmola franchise, the company said. Coming to the over-the-counter portfolio, key brands such as Honitus and Shilajit as well as health juices and tonics for women's health performed well, the company said.

Dabur India said it has decided to revise its strategic vision cycle to three years from four years to be able to quickly navigate challenges and capture emerging opportunities, amid volatility in the geopolitical landscape in the short term and uncertain macroeconomic indicators. It said it has engaged consulting firm McKinsey & Co. to align its strategies for the next three years in line with the evolving situation.

Dabur India posted its earnings for the December quarter during market hours on Thursday. Post the earnings, shares of the company rose as much as 4.2% to touch an intraday high of INR 540, but pared some of its gains and closed at INR 533.70, up 3%, on the National Stock Exchange.  End

Edited by Avishek Dutta

For users of real-time market data terminals, Informist news is available exclusively on the NSE Cogencis WorkStation.

Cogencis news is now Informist news. This follows the acquisition of Cogencis Information Services Ltd by NSE Data & Analytics Ltd, a 100% subsidiary of the National Stock Exchange of India Ltd. As a part of the transaction, the news department of Cogencis has been sold to Informist Media Pvt Ltd.

Informist Media Tel +91 (22) 6985-4000

Send comments to feedback@informistmedia.com

© Informist Media Pvt. Ltd. 2025. All rights reserved.