FMCG major Dabur India on Thursday posted Q2 profit at Rs 515.05 crore, up 5.1 per cent in comparison to Rs 490.06 crore during the second quarter of FY23, surpassing estimates. It posted revenue from operations at Rs 3,203.84 crore, up 7.3 per cent as against Rs 2,986.49 crore during the corresponding quarter of FY23. Dabur’s revenue growth was driven by steady performance of both the Home & Personal care and HealthCare businesses. The company EBITDA stood at Rs 661 crore. According to a CNBC TV18 poll, Dabur was expected to post a profit of Rs 505 crore and the revenue for the quarter ended September 2023 was expected to come at Rs 3,210 crore.
While the total income during the quarter in review was at Rs 3,320.25 crore, total expenditure incurred during the second quarter was at Rs 2,669.43 crore.
The company board also declared an interim dividend of Rs 2.75 per equity share having face value of Re 1 each (i.e., 275 per cent) for the financial year 2023-24. “The company has vide its letter dated October 25, 2023 already informed to Stock Exchanges regarding the record date of November 10, 2023, fixed for ascertaining the name of the members/beneficial owners entitled to receive the interim dividend on equity shares for the financial year 2023-24,” it said in a regulatory filing.
Dabur’s Q2 performance across markets
Dabur’s India business saw key brands and products by the company posting ‘category-leading growths’ with market share gains across 90 per cent of the product portfolio. The India FMCG business ended the second quarter with a volume growth of 3 per cent.
Dabur’s international business continued its strong growth momentum with a 23.6 per cent jump in constant currency terms in the second quarter. During the quarter, the MENA business grew by 18.4 per cent; Egypt by 35 per cent and the Turkey business by 78 per cent.
“We have delivered steady Revenue and double-digit Operating Profit growth with improvement in gross margins led by moderating inflation. We believe we are on the right path with our strategic playbook. We remain focused on managing our business with agility, leveraging our strong distribution footprint while enhancing our margins, quarter after quarter,” Mohit Malhotra, Chief Executive Officer, Dabur India Limited said.
“We have witnessed a marked sequential improvement in urban demand, led by new-age channels. While the rural growth still lags urban demand, the gap has reduced. We are increasingly optimistic of the future as we are seeing green shoots of recovery in rural sentiments. We will continue to invest behind our brands, distribution infrastructure and innovation to deliver volume-led profitable growth,” he added.
Dabur’s Q2 performance across product categories
Dabur’s digestive business, riding on steady performance of its flagship brand Hajmola, grew by 18.1 per cent, while the Home Care business reported a 15.1 per cent growth. The Ayurvedic OTC and Ethicals business grew by 8.1 per cent. “Our flagship toothpaste franchise Dabur Red ended the quarter with a high single-digit growth with continued market share gains. While the unseasonal rains in our key North Indian markets impacted the beverage business during the quarter, the Foods business ended with a 40.4 per cent surge. The recently acquired Badshah brand reported a 16.4 per cent growth during the quarter,” it said.