As the coronavirus pandemic hit billions of lives, consumers’ renewed focus on immunity boosting and healthcare brands has led to FMCG major Dabur witnessing an exponential growth in the sales of its chyawanprash range.
As the coronavirus pandemic hit billions of lives, consumers’ renewed focus on immunity boosting and healthcare brands has led to FMCG major Dabur witnessing an exponential growth in the sales of its chyawanprash range. “Demand patterns have changed significantly, with consumers increasingly seeking Ayurveda-based interventions for boosting their immunity… We are already witnessing a 400% surge in demand for our flagship immunity booster Dabur Chyawanprash and an 80% growth in Dabur Honey,” Mohit Malhotra, Chief Executive Officer, Dabur India Ltd, said. The company has also released its Q4 and full-year results on wednesday.
Key takeaways from Dabur results
- The spread of the coronavirus pandemic derailed Dabur’s growth trajectory in the fourth quarter of 2019-20. “Quarterly Revenue from Operations was growing by 4.5% till February-end,” but the company posted a revenue decline of 12.3% due to spread of coronavirus.
- Dabur India Ltd reported Consolidated Revenue from Operations in Q4 of 2019-20 at Rs 1,865 crore as against Rs 2,128 crore a year ago.
- Dabur reported a consolidated net profit for Q4 at Rs 281 crore while the same stood at Rs 370 crore a year earlier.
- For the full year 2019-20, Dabur reported a 2% growth in revenue from operations at Rs 8,704 crore. This is a jump from Rs 8,533 crore a year earlier.
- Dabur’s net profit for the full year stood at Rs 1,445 crore witnessing an increase of 0.2% from Rs 1,442 crore a year earlier.
- Dabur made a one-time investment to the tune of Rs 100 crore in 2019-20.
While Dabur was on track to post a positive growth, the nationwide lockdown has impacted its business with the company’s portfolio mostly comprising non-essential categories. However, the company decided to launch new products which are in line with the “changing demand patterns”. This includes items in preventive healthcare and personal hygiene such as Dabur Tulsi Drops, Dabur Amla Juice, Dabur Giloy-Neem-Tulsi juice and Dabur Immunity Kit etc. Dabur also debuted in the hand sanitizer category during lockdown as demand shot up.