Dabur India on Tuesday posted a 1.3% YoY growth in its net profit to Rs 361.9 crore, missing street estimates, for the quarter ending September 30, 2017.
Dabur India on Tuesday posted a 1.3% YoY growth in its net profit to Rs 361.9 crore, missing street estimates, for the quarter ending September 30, 2017. The FMCG firm’s EBITDA (earnings before interest, taxes, depreciation, and amortisation) stood at Rs 504.2 crore, up 1.3 % from the corresponding quarter last year. The EBITDA margin widened to 25.7% during the quarter against 25.1% a year ago. The volume growth of the company was recorded at 7.2%. Dabur reported a minor dip of 1.1% in revenue from operations to Rs 1,958.9 crore as against Rs 1,981.6 crore, a year earlier.
In September, Dabur joined forces with e-commerce player Amazon India for the Ayurveda marketplace and strengthen its international play. Under this regime, Amazon will source products directly from Dabur that will result in better margins for both. The company attributed GST and improved consumer in local market as the major reasons for the strong domestic consumer growth during the July-September quarter in 2017. “However, the overseas business performance was hit by a combination of steep currency devaluation in Egypt, Turkey and Nigeria, and the continued geopolitical disturbances in key geographies,” the company said in a statement. “The medium-to-long term prospects, particularly for India, remain robust and we are confident that domestic consumer demand will gain pace in months to come.
With consumer demand for nature and Ayurveda-based products on the rise, Dabur’s positioning as the ‘Science-based Ayurveda’ specialist will pave the way for future growth,” Sunil Duggal, CEO of Dabur India, said. Increased consumer interest in Ayurveda following the entry of Patanjali Ayurved in the FMCG sector has prompted old FMCG favourites, such as HUL, Marico and Dabur to share the market with the new entrants and fight for the same pie. For the year ending March 31, 2017, Patanjali reported a turnover of Rs 9,346 crore, up 100% year-on-year. Patanjali has launched a slew of products at competitive prices compelling incumbents in the sector to revamp their ayurvedic and herbal offerings.