FMCG major Dabur India posted a consolidated net profit of ₹504.35 crore in the quarter ended December 31, 2021, up 2.19 cent compared to ₹493.50 crore in the corresponding quarter in the previous fiscal. Consolidated revenue was up 7.8 per cent at ₹2,941.75 crore in the third quarter that saw high inflationary pressures, moderation in industry growth and dip in overall consumer sentiment.

“The overall operating environment remained challenging throughout the quarter with unprecedented inflation of 13 per cent and subdued consumer sentiments. We have mitigated the impact of inflation partially through calibrated price increases and cost-saving initiatives. Our investments in distribution footprint expansion in rural India helped drive growth even in a challenging environment with rural demand for Dabur outpacing urban demand by 500 bps,” Dabur India Ltd Chief Executive Officer Mohit Malhotra said.

The company said despite the macro-economic headwinds, it remained focused on rolling out new products that expanded its total addressable market and it also gained market share across its portfolio.

Dabur India witnessed a marked revival in discretionary spending by consumers which helped the home and personal care business grow 8.4 per cent. “While our healthcare portfolio was impacted due to the high base of the previous year and a marked drop in demand for Covid-contextual products, this business reported a 2-year CAGR of 11.4 per cent,” Malhotra added.

“Excluding the Covid-contextual range of Chyawanprash and Honey, our domestic FMCG volume growth stood at 8 per cent for the third quarter,” Malhotra pointed out.

The company’s foods & beverages business witnessed strong growth of 38 per cent. “Dabur’s foods business under the Hommade brand with a range of ready-to-eat and ready-to-cook products, will become a ₹100 crore business by the end of FY22,” Malhotra added.

Growth of the digestives business was up 12.2 per cent while the hair care category reported a growth of 8.4 per cent backed by 21 per cent surge in the shampoo business. The toothpaste business recorded a growth of 8.1 per cent while the ayurvedic ethicals business was up 8.3 per cent.

“Dabur’s international business reported a growth of 8.7 per cent in constant currency terms. The UK & EU business grew by 21.5 per cent, while the Nepal business was up 17 per cent . The US business posted a growth of 16 per cent , while the Turkey business reported a 14.6 per cent growth and Egypt grew by 13 per cent,” the company added.

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