Dabur India posted a consolidated net profit of ₹500 crore in Q1 FY25, up 8 per cent from ₹464 crore a year earlier. Consolidated revenue was up 7 per cent to ₹3,349 crore, driven by steady growth across all key business verticals.The company said that India FMCG business volume growth stood at 5.2 per cent for the quarter.

Speaking on an investor call post release of earnings, Mohit Malhotra, CEO, Dabur India said that the FMCG sector witnessed a gradual pick-up in rural markets in the past two quarters despite challenges such as unprecedented heatwave and high food inflation. He said that the company drove sequential recovery in volume growth, driven by rural markets, to report “industry-leading performance” across our key verticals.

Rural

Responding to a query on rural demand trends, Malhotra said, “ We are seeing that rural consumer is coming back into the consumption fold with inflation and price premium coming down. This momentum is further being built up by good harvest, normal monsoon and the new schemes announced by the governmentin the Budget focused on agriculture, rural infrastructure and employment opportunities. This is leading to better rural sentiment and this generally leads to better consumption.”

“ For the past three quarters, we have seen our rural recovery happening whereas FMCG industry is showing rural recovery for two quarters. Our sub-stockists channel is also doing well. I think the subsequent quarters for the FMCG sector will be better than previous quarters,” he added.

Spices controversy

Meanwhile, Malhotra also said the recent controversy involving certain Indian spice brands in international markets has had an impact on spice exports from India, especially to markets such as the UK, due to heightened scrutiny by international regulators. “There is a very tight screening and scrutiny happening of all the dispatches (of spices) from India to international (markets), driven by the controversy that happened. While our Badshah products did not get picked up, but because of very high scrutiny there is a long backlog of supplies at ports, which is leading to delays in the supply chain,” he added. “ Our international business for Badshah declined on account of these supply chain constraints, which I think will correct going forward in the next quarter,” Malhotra stated.

The company said its foods business grew by 21.3 per cent while the Badshah business was up 15 per cent in Q1. Toothpaste business was up 12 per cent during the quarter, the 100% Fruit Juice portfolio grew by 21 per cent while the Carbonated Fruit Drinks portfolio grew by 90 per cent, it added. “The Shampoo portfolio also grew by 13.7 per cent while the Health Supplements business posted a 7 per cent growth during the quarter,” Dabur India stated.

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