FMCG major Dabur on Thursday posted fiscal first quarter profit at Rs 456.61 core, up 3.5 per cent on-year as against Rs 441.06 crore during the corresponding quarter of FY23. It posted revenue from operations at Rs 3,130.47 crore, up 10.9 per cent in comparison to Rs 2,822.43 crore during Q1FY23. The company crossed the Rs 3,000 crore mark for the first time in the first quarter, said Dabur, driven by strong double digit growth in both HPC and HC businesses. “The financial year 2023-24 began on a strong note, reflecting the successful execution of our business and go-to-market strategies to deliver a robust performance during the first quarter of the year,” Dabur said in a regulatory filing.
The company EBITDA stood at Rs 604.7 crore. According to CNBC TV18 estimates, Dabur was expected to post the first quarter profit at Rs 465 crore and revenue at Rs 3,120 crore. The FMCG company recorded a total income for the quarter in review at Rs 3,240.25 crore, up 10.9 per cent in comparison to Rs 2,922.98 crore. However, the total expenses during Q1FY24 came in at Rs 2,646.69 crore, up 12.2 per cent from Rs 2,358.52 crore a year earlier.
Dabur’s Q1 performance across segments
Dabur’s consumer care business clocked a revenue of Rs 2,391.44 crore during the quarter from Rs 2,135.90 crore a year earlier. Its food business posted a revenue of Rs 668.75 crore, up 9.9 per cent on-year. The company’s retail business, meanwhile, recorded the quarter revenue at Rs 29.71 crore as against Rs 25.67 crore during Q1FY23.
“Riding on growing demand for our flagship cough & cold brand Honitus, Dabur’s OTC business reported a 24.3 per cent growth during the quarter. The Digestive business was up 14.3 per cent while the Home Care business posted a 14.5 per cent jump. The Oral Care portfolio grew by 12.7 per cent while the Hair Care portfolio posted a near 10 per cent growth during the quarter,” it said. Even as the foods business posted a growth, the beverages portfolio at Dabur was impacted by the unseasonal rains. Dabur also reported market share gains across 90 per cent of its portfolio.
Further, in the Hair Oils category, Dabur gained 200 bps to end the quarter at its highest-ever share of 17.4 per cent. Dabur Red Paste gained 50 bps market share, taking the overall toothpaste market share to 16.9 per cent. Odomos gained 340 bps, taking the share of the mosquito repellent category to 58.9 per cent. Dabur also reported a 320 bps gain in Chyawanprash market share.
Dabur’s go-to-market strategy
“We remain committed to our strategy of superior go-to-market execution by enhancing our distribution footprint while focusing on driving growth for our power brands and building an agile organization culture in our pursuit of sustainable, balanced growth and value creation. Our media spends grew by 30 per cent in the consolidated business and by 28 per cent in the India business,” said Mohit Malhotra, CEO, Dabur India Limited.
With the inflation softening, Dabur is expecting to see its rural growth bounce back on high single digits after three quarters. “While rural growth continues to lag urban demand, the gap has reduced significantly. We continue to strengthen our long-term competitiveness through investments in developing consumer-centric innovations and technology, as we deliver on our purpose of health and well-being for every household,” said Mohit Malhotra.
Dabur’s international business, meanwhile, reported a 20.6 per cent growth in constant currency terms. The Turkey business reported a 51.2 per cent growth, while the Egypt business grew by 45.7 per cent, Sub-Saharan Africa by 13 per cent and MENA by 10.2 per cent.