FMCG major Dabur’s fiscal fourth quarter net profit declined 0.5 per cent to Rs 292.76 crore from Rs 294.34 crore in the same quarter last year, missing estimates of Rs 350 crore. According to a CNBC TV 18 poll, Dabur was expected to report profit at Rs 350 crore and revenue of Rs 2670 crore. The FMCG firm posted revenue from operations at Rs 2,677.80 crore, up 6.4 per cent from Rs 2,517.8 crore in the fourth quarter of FY22. “The strong execution of the Power Brand strategy coupled with distribution footprint enhancement helped Dabur India Ltd report a steady performance during the fourth quarter and the full year,” the company said. Dabur has also recommended a final dividend of Rs 2.70 per equity share having face value of Re 1 each (i.e., 270 per cent) for the financial year 2022-23.
Dabur ended the quarter with a volume case growth of 11 per cent and the year with 14 per cent. “During the year, we faced high inflation, which was partly mitigated by price increases to the tune of 6 per cent. Consumer promotions were offered to soften the impact of price hikes on consumption, which resulted in flatfish value-weighted volumes for both the fourth quarter and the year,” said Mohit Malhotra, Chief Executive Officer, Dabur India Ltd. The FMCG major plans to “accelerate the growth momentum by continuing to invest in brand building, innovation, and capabilities that will drive future growth”.
Dabur’s performance across segments
Dabur’s health supplements category saw a 3-year FY CAGR of 8.1 per cent with market share gains continuing in Chyawanprash and Honey categories. The Digestives segment saw strong growth during FY23 on a high base of 12.6 per cent growth, driven by Hajmola and Pudin Hara franchises. While OTC segment recorded flat performance in FY23 on account of high Covid base, Ethicals portfolio registered double digit 3-year CAGR. In the home care segment, Dabur posted double digit growth for Odonil, Odomos and Sanifresh. Dabur’s Oral Care penetration has now increased to 50.8 per cent, it said. The toothpaste portfolio recorded 5.7 per cent growth driven by Dabur Red with its market share increasing by 20 bps. The hair oil portfolio recorded 1 per cent growth with market share improving by ~130 bps. The brand’s shampoo portfolio posted 8 per cent growth in FY23 on a high base of 22 per cent growth. Dabur’s food & beverages business reported a 30 per cent growth during the year with its juices & beverages business also growing at around 30 per cent.