Dabur India posted a 5.4% year-on-year decline in the company’s consolidated net profit to Rs 476 crore for the third quarter ended December 31, 2022. The consolidated revenue increased 3.4% y-o-y to cross the Rs 3,000-crore mark for the first time in a quarter. Consolidated revenue posted a constant currency growth of 5.7%. The international business reported a 14% growth in constant currency terms. Consolidated revenue posted a three-year CAGR of 9%.
The company’s Ebitda declined 2.8% y-o-y to Rs 610 crore, while operating margins contracted by 130 basis points y-o-y to 20%, primarily due to material inflation and mix impact. However, price increases coupled with cost optimisation partially mitigated inflation.
“We have delivered steady results in what continues to be a difficult cost and operating environment. We continued to adjust prices responsibly to reflect inflation. The impact of inflationary pressures was more pronounced in the rural markets as marked downtrading and shift to more affordable and smaller packs led to rural growth lagging urban markets for the second quarter in a row for Dabur,” said Mohit Malhotra, CEO, Dabur India.
However, the rural demand slump has bottomed out as there are no green shoots of revival in the hinterland, he said. “We are hopeful of rural demand reporting a smart recovery on a record farm output and increased government spending. The urban growth will be driven by softening of inflation and buoyancy in new-age channels like modern trade and e-commerce,” Malhotra said.
Dabur’s home care business ended the quarter with an 18.2% growth. The ayurvedic OTC business grew 16.8% in the December 2022 quarter, while the digestives category reported a 11.2% growth. Dabur’s food & beverages business reported a 6.4% growth, while the toothpaste business, led by a steady demand for the flagship Dabur Red paste, ended the quarter with a 3.2% growth. The company gained market share across its portfolio, led by a 250 basis points improvement in juices & nectars market share, and a 70 basis points market share gain in hair oils to touch the highest-ever 16.2%. Dabur’s share in the Chyawanprash category improved by 30 basis points. Dabur also reported a 40 basis points increase in shampoo market share.