MUMBAI – Dabur India on Wednesday reported an 8% year-on-year (YoY) growth in consolidated net profit for the quarter ended December to Rs 514.20 crore, which was largely on expected lines.

Consolidated revenue for the quarter increased 7% YoY to Rs 3,255 crore, which was also on expected lines. In constant currency (CC) terms, consolidated revenue grew by 10%, and the international business saw a nearly 12% growth.

Sequentially, the consolidated topline rose just 1.6%, while the bottomline declined 0.2%.

The growth in revenue was driven by steady performance of both the home & personal care and food & beverages businesses, the company said.

Despite delay in the onset of winters slightly impacting the healthcare and winter portfolio, Dabur’s India business ended the third quarter with a volume growth of 6%.

Earnings before interest, taxes, depreciation and amortization or EBITDA rose 9.4% YoY to Rs 667.40 crore, constrained by the sharp rise in advertising and promotional spending, and a rise in input costs. Advertising expenses shot up 36% from the year-ago period to Rs 244.54 crore. Operating margin rose just 46 basis points YoY to 20.50%. “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,” Dabur India’s Chief Executive Officer, Mohit Malhotra, said.

Moderating inflation, coupled with buoyant consumer sentiments and focussed investment in distribution footprint expansion in rural India helped demand from the hinterland bounce back for Dabur, the FMCG major said.

Rural demand for the honey maker 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,” Malhotra said.

Category Performance
Dabur’s digestives business registered an over 15% growth, while the Ayurvedic Ethicals business grew by nearly 7% in the last quarter. Shampoo and post-wash category reported an over 11% growth, while the toothpaste business saw an industry leading growth of over 8%, backed by a 5% volume growth.

The Home Care business reported a 7% growth, while beverages portfolio returned to the growth trajectory with a 7% growth. The foods business, including Badshah masala portfolio, ended the quarter with a healthy 22% growth.

On the international front, the Nigeria business grew by a robust 52%, Turkey saw a 44% growth, and Egypt 43% growth.

Post earnings announcement, shares of Dabur India came off the day’s highs and were trading 0.3% higher on the National Stock Exchange at Rs 537.50.

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