By: IPP Bureau
Last updated : August 02, 2024 5:03 pm
Q1 Consolidated operating profit Up 8.3%; revenue grows 7% to Rs 3,349 crore
India’s leading Science-based Ayurveda major Dabur India Ltd announced a 7% growth in consolidated revenue for the first quarter of 2024-25 to Rs 3,349 crore, driven by steady growth across all key business verticals. The Q1 revenue growth stands at 10% on a constant currency basis.
Despite a challenging demand environment marked by high food inflation and unemployment rate, Dabur delivered a strong 8.3% growth in Operating Profit, demonstrating the resilience of its business model. Dabur ended the first quarter of 2024-25 with an 8% growth in Consolidated Net Profit at Rs 500 crore, up from Rs 464 Crore a year earlier. The India FMCG business posted a volume growth of 5.2% for the quarter.
“It's been a good start to the new financial year as we drove sequential recovery in volume growth, driven by rural markets, to report industry-leading performance across our key verticals. This allowed us to plough higher investments behind our brands to drive market expansion and sustain our growth momentum,” Dabur India Limited Chief Executive Officer Mohit Malhotra said.
Dabur’s media spends grew by 15.4% during the quarter in the Consolidated business. The investments we have been making allowed us to drive demand during the quarter with key verticals like Health Supplements, Digestives, Shampoos, Toothpaste, Home Care and Beverages. The India Business saw our key brands and products report market share gains across 95% of the portfolio.
“Through disciplined execution of our go-to-market strategy, we continued to capitalise on our brand strength and deepen engagement with our consumers. Our focussed approach towards expanding our rural footprint to over 1.22 lakh villages reaped rich dividend as rural demand outpaced urban demand by 350 bps during the quarter. To cater to this wider network, we have expanded our product basket with the launch of newer affordable and rural-specific pack bundles across categories, besides investing in consumer activations in the hinterland to establish a better connect with our consumers,” Malhotra added.
Dabur has also made rapid strides on the ESG (Environment, Social & Governance) front. Our business is committed not just towards profitable growth, but also towards leaving a deeper imprint on the society as a whole. Paving the way towards a more sustainable future, Dabur is moving ahead on its target of becoming a Net Zero Emissions Enterprise by 2045, Malhotra said.
International Business Growth
Dabur's International Business reported an 18.4% growth in constant currency terms. The Egypt business reported a near 64% growth and Nigeria grew by 181%, while Sub-Saharan Africa grew by 21.4% and MENA by 13%.
Category Growths
Riding on growing demand for our flagship Dabur Red Paste and the premium brand Meswak, Dabur’s Toothpaste business reported a 12% growth during the quarter. The 100% Fruit Juice portfolio grew by 21%, while the Carbonated Fruit Drinks portfolio grew by 90%. Our Digestives business posted a 11% jump. The Shampoo portfolio also grew by 13.7% while the Health Supplements business posted a 7% growth during the quarter. The Foods business grew by 21.3%. The recently acquired Badshah business grew by a robust 15%.
Dabur reported market share gains across 95% of its portfolio. Odomos gained 518 bps market share, while the J&N portfolio reported a 330-bps improvement in market share. Dabur also reported a 194-bps gain in Air Freshener market share. Dabur Red Paste gained 15 bps share.