Dabur India posted a net profit of ₹300.8 crore for the fourth quarter ended March 31, up 2.2 per cent compared to ₹294.2 crore in the corresponding period of the previous fiscal. Consolidated revenue grew 6.4 per cent to ₹2,677.8 crore for the quarter under review.
For the full year of FY23, the company reported a net profit of ₹1,707.1 crore, marginally down compared to ₹1,739.2 crore on account of operating profit contraction and higher depreciation and amortisation costs. It posted a consolidated revenue of ₹11,529.9 crore, up 5.9 per cent from ₹10,888.7 crore in FY22.
The company’s board recommended a final dividend of 270 per cent, taking the total dividend for FY23 to 520 per cent. “In line with our payout policy, the board has proposed a dividend of ₹2.70 per share, aggregating to ₹478.38 crore,” the company said.
Read: Dabur mulls acquisitions to expand across India, Southeast Asia
Rural markets
On an earnings call, Mohit Malhotra, CEO, Dabur India, said while the operating environment remained challenging, positive growth momentum in the later part of Q4 was visible. “Rural markets have continued to lag urban on account of high inflation and downtrading by consumers. Having said that silver lining for the year has been the performance of the new age channels and some green shoots which are emerging in the rural markets, towards the end of the quarter, indicating early signs of revival in demand,” he added.
The company said it partially mitigated high inflation by price increases to the tune of 6 per cent during the year. “Consumer promotions were offered to soften the impact of price hikes on consumption, which resulted in flattish value-weighted volumes for both the fourth quarter and the year,” it added.
Food and beverage
“The food and beverage portfolio, which is in the range of roughly ₹1,700 crore, should grow to ₹4,000-5,000 crore in next 5-6 years,” Malhotra said. During the year, the company’s F&B business grew 30 per cent.
The company added that its oral care business penetration has now increased to 50.8 per cent and that it has become the Number 2 player in the segment with a 15.8 per cent market share. “Hair oils business reported a 130bps gain in market share to end at its highest-ever share of 17 per cent,” it added. The home care business ended the year with a 23.4 per cent growth.