Dabur expects Jan-Mar operating profit margin to fall 150-175 bps on year
This story was originally published at 08:34 IST on 3 April 2025
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--Dabur: Consol sales growth in Jan-Mar likely to be flattish on year
--Dabur: Operating profit margin in Jan-Mar to fall 150-175 bps on year
--Dabur: Rural markets grew ahead of urban markets in Jan-Mar
--Dabur: FMCG volume trends continued to be subdued in Jan-Mar
--Dabur: Intl ops to grow in double digits in constant currency Jan-Mar
--Dabur: India FMCG business to decline in mid-single digits Jan-Mar
--Dabur: India ops impacted due to delayed winters, slowdown in urban mkt
MUMBAI – Dabur India Ltd. late Wednesday said the company expects its operating profit margin in the March quarter to fall around 150-175 basis points on year, while growth in consolidated revenue is likely to be flat. The fast-moving consumer goods major blamed "inflation coupled with operating deleverage" for the fall in operating margin.
During the three-month period ended in March, rural demand showcased resilience and grew ahead of demand in urban markets, the company said in an exchange filing. It added that due to delayed and truncated winters, and slowdown in urban demand, its domestic FMCG business is likely to decline in mid-single digits.
Overall, FMCG volume trends remained subduded in Jan-Mar and the general trade channel continued to be under pressure during the quarter, the company said. At the same time, organised trade channels, including modern trade, e-commerce and quick commerce, continued to post growth.
The company's foods business in India is expected to post double-digit growth. Dabur expects business in its key international markets, including West Asia and North Africa region, Egypt, and Bangladesh, to post double-digit growth in constant currency terms.
"...we anticipate that the incentives outlined in the recent Union budget will stimulate consumption and facilitate a recovery in the FMCG sector which Dabur is well placed to capitalise on," the company said in its quarterly update.
For the December quarter, Dabur reported a consolidated net profit of INR 5.22 billion on consolidated revenue of INR 33.55 billion. The company's shares closed 0.4% lower on Wednesday at INR 495.75 on the National Stock Exchange. End
Reported by Shakshi Jain
Edited by Avishek Dutta
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