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Informist, Wednesday, May 7, 2025

 

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--Dabur Jan-Mar consol net profit INR 3.20 bln vs INR 3.50 bln year ago
--Dabur India to pay INR 5.25 per share final dividend
--Dabur Jan-Mar consol revenue INR 28.30 bln vs INR 28.15 bln year ago
--Dabur Jan-Mar advertisement expense INR 1.76 bln vs INR 1.84 bln year ago
--Dabur FY25 consol net profit INR 17.68 bln vs INR 18.43 bln year ago
--Dabur Jan-Mar consumer care business revenue INR 22.55 bln vs INR 22.14 bln
--Dabur Jan-Mar food business revenue INR 5.00 bln vs INR 5.28 bln yr ago
--Dabur FY25 consol revenue INR 125.63 bln vs INR 124.04 bln year ago
--Dabur Jan-Mar consol operating margin 15.08% vs 16.58% year ago
--Dabur Jan-Mar consol operating profit INR 4.27 bln, down 8.5% on year
--Dabur Jan-Mar consol revenue growth 2.1% YoY in constant currency terms
--Dabur Jan-Mar intl revenue INR 8.14 bln, up 19% YoY in constant currency
--Dabur Jan-Mar India home, personal care sales INR 8.63 bln, down 3% on yr
--Dabur Jan-Mar India health care sales INR 5.36 bln, down 4.7% on year
--Dabur Jan-Mar India beverages sales INR 3.52 bln, down 9.2% on year
--Dabur Jan-Mar Badshah sales up 6% on year, volume up 11%
--Dabur India FY25 sales grew 3.6% on year in constant currency terms
 

 

By Avishek Rakshit

 

KOLKATA – Dabur India Ltd.'s top-line performance during Jan-Mar has been the poorest since the outbreak of the COVID-19 pandemic in India in March 2020. Hit by weak consumer demand, Dabur posted a consolidated revenue growth of less than 1% on year. It reported a revenue of a little over INR 28 billion for the quarter, missing the Street's estimates by more than 1%.

 

The company's consolidated net profit declined by over 8% on year to a little over INR 3 billion. The net profit figure missed the Street's projection by around 6%.

 

The March quarter is usually a weak one for Dabur as the company records low revenue growth in this period. Even so, the performance in the quarter under review was particularly poor. In the March quarter of the financial year 2023-24 (Apr-Mar), Dabur's revenue grew 5% on year. In the corresponding quarter of FY23, its top line rose over 6%. In the final quarter of FY22, the topline growth was around 8%, and in the same quarter of FY21, its revenue was up over 25%, thanks to the low base created by the pandemic in FY20.

 

Taking sequential growth in top line and bottom line into account, the quarter under review was easily the worst in the company's recent history. On a sequential basis, revenue declined nearly 16%, registering its sharpest fall since the March quarter of FY20. The profit fell even more sharply by 39%, its worst fall since the corresponding quarter in FY22.

 

But for Dabur's international business, the March quarter would have been a lot worse for the company. In India, the demand environment remained challenging with high food inflation and a surge in the cost of living continuing to limit urban spending, Dabur said by way of explanation for the tepid show.

 

"Despite facing some pressures in the India business, our international business enabled us to successfully navigate the complex external environment," Mohit Malhotra, chief executive officer, said in a statement. "Our international business achieved 19% constant currency growth in the fourth quarter and 17% during the full year," he said.

 

Dabur's consumer care business, which usually accounts for 80% of its total sales, grew nearly 2% on year in the March quarter to INR 22.5 billion. The foods segment, which contributes around 18% of total sales, declined 5% on year to INR 5 billion. Dabur said the foods business reported volume growth of over 14% during the quarter under review, while sales volume in the skin and salon business, which is part of the consumer care business, grew 8%. The shampoo business ended the March quarter with a rise of about 4% in sales volume, and the spices portfolio under the Badshah brand recorded around 11% volume growth. In constant currency terms, Dabur's Jan-Mar sales grew 2%.

 

 

In India, Dabur's sales in the home care and personal care business was down 3% on year at nearly INR 9 billion. Health care sales fell 5% to over INR 5 billion. Beverage sales in the country also declined 9% on year to over INR 3 billion. Sales of the Badshah brand of spices, however, increased 6% on year.

 

Despite the lacklustre financial showing in Jan-Mar, Dabur reported market share gains across 90% of its portfolio during the quarter. Its market share in the juices and nectars category rose by 261 basis points to 60.6%, and in hair oils by 196 bps to 19.1%--the highest market share recorded by the company yet. It gained 15 bps market share in the toothpaste category and the air-freshener market share improved by 67 bps. The Dabur Glucose brand ended with an improvement of 112 bps in market share.

 

The company's global sales, which account for 29% of its total revenue, helped Dabur tide over the tepid show in the March quarter. In constant currency terms, this division recorded 19% on-year growth in revenue to over INR 8 billion. The business reported the strongest growth in Egypt, registering a 36% rise in constant currency terms, followed by Turkey, which recorded 23% growth. Despite the turmoil in Bangladesh since August, revenue from the country grew 22% in the March quarter.

 

Dabur cut down on its advertising expenses in the face of the weak performance, reducing its spend by 4% on year to around INR 2 billion. Despite such measures to improve profitability, the company's operating margin in Jan-Mar fell to 15.1%, compared to 16.6% a year ago. The operating profit, at over INR 4 billion, fell nearly 9% on year.

 

During FY25, Dabur's consolidated net profit declined 4% on year to nearly INR 18 billion. Consolidated sales rose over 1% to around INR 125.6 billion. In constant currency terms, Dabur posted nearly 4% sales growth. Wednesday, shares of Dabur closed 0.3% higher at INR 482.10 on the National Stock Exchange. The company released its results after market hours.  End

 

Edited by Rajeev Pai

 

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