Dabur Ltd on Wednesday recorded its third quarter profit for the financial year 2023-24 at Rs 514.22 crore, up 8 per cent in comparison to Rs 475.94 crore during the corresponding quarter of previous year. It posted revenue from operations at Rs 3,255.06 crore, up 7 per cent as against Rs 3,043.17 crore during the third quarter of FY23, driven by steady performance of both the Home & Personal care and Food & Beverages businesses. The company EBITDA stood at Rs 667.6 crore, up 9.4 per cent on-year.
“Riding on the strength of its consumer-focused product portfolio, superior brand communication and excellence in go-to-market execution, Dabur continued to build and sustain its growth momentum, posting category-leading growths with market share gains across the portfolio. Despite the delay in onset of winters slightly impacting the Healthcare and Winter portfolio, Dabur’s India Business ended the third quarter with a volume growth of 6 per cent,” the company said.
Dabur’s International Business, meanwhile, reported a growth of 11.7 per cent in Constant Currency terms. The Nigeria business grew by 52 per cent, while the Turkey business was up 44 per cent and the Egypt business ended with a 43 per cent growth.
Dabur’s Q3 performance across segments
Dabur’s Digestives business ended the quarter with an over 15 per cent growth while the Ayurvedic Ethicals business grew by nearly 7 per cent in Q3. Dabur’s Shampoo and Post-Wash category reported an over 11 per cent growth. The Toothpaste business ended the quarter with an over 8 per cent jump, backed by Toothpaste volume growth of 5 per cent. The Home Care business reported a 7 per cent growth while the Beverages business returned to the growth trajectory and ended the quarter with a 7 per cent growth. The Foods business, including Badshah, ended the quarter with a 22 per cent growth. With the business fundamentals remaining strong, Dabur posted market share gains across the portfolio, led by a 140 bps improvement in Hair Oils market share. Dabur also reported an 184 bps gain in Air Freshener market share and 151 bps gain in Chyawanprash market share.
“We remain intensely focused on our strategies of managing an agile and accountable organization structure with a focus on superior product delivery and constructive disruption to drive sustainable, profitable growth across our portfolio. Moderating inflation coupled with buoyant consumer sentiments and our focussed investment in distribution footprint expansion in rural India helped demand from the hinterland bounce back for Dabur. Rural demand for Dabur grew 200 bps ahead of urban. We have also stepped-up investment behind our brands to drive competitive volume growth, reflected in our higher advertising spends during the quarter,” said Mohit Malhotra, CEO, Dabur India Limited.
The company has also been investing in growing its rural footprint, which has expanded by 17,000 villages in the current fiscal from 100,000 to 117,000. “We are working towards ending this year with a rural coverage of 1.2 lakh villages. Dabur’s rural distribution has, in fact, been the highest in the industry, giving us a distinct advantage and helping drive our rural growth,” added Mohit Malhotra.