Dabur Q3 Results: Profit Up By 8 % Consolidated net profit stood at 514.2 crore compared with INR 476.7 crore during the quarter under review
You're reading Entrepreneur India, an international franchise of Entrepreneur Media.
Dabur India reported a consolidated net profit INR 514.2 crore compared with INR 476.7 cr (YoY) during the quarter under review, recording a growth of 8 per cent. Its revenue from operations was up 7 per cent at INR 3,255.06 crore, it was at INR 3,043.17 crore in the corresponding quarter of the previous fiscal.
Riding on the strength of its consumer-focused product portfolio, 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.
"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.
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 industry leading 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. Our Foods business, including Badshah, ended the quarter with a 22 per cent growth. Dabur's International Business reported a growth of 11.7 per cent in constant currency terms.
The company approved an investment of INR 135 crore for setting up a new manufacturing facility in South India. This new unit would manufacture a range of Dabur's Ayurvedic Healthcare, personal care and home care products like Dabur Honey, Dabur Red Paste and Odonil air fresheners.
"Our business has scaled up in South India and today accounts for around 18-20 per cent of Dabur's domestic business. With South India's contribution increasing, we have decided to establish a new manufacturing facility there to better cater to the local demand. The Board today approved an investment of Rs 135 crore for establishing this greenfield facility. This is not only an opportunity to bring more jobs to the region, but also allows us to further expand our manufacturing capabilities and meet the growing need for Dabur products in South India," added Malhotra.
