Dabur India reported a 21.98 per cent decline in its consolidated net profit in the fourth quarter of the previous fiscal.
In a statement on Thursday, the company said it suffered losses worth ₹294.34 crore during the period due to issues such as “inflationary headwinds”. It added that its revenue crossed ₹10,888.68 crore in the last fiscal.
In the third quarter, the company had posted a net profit of ₹377.29 crore.
Dabur’s revenue from operations rose 7.74 per cent to ₹2,517.81 crore during the quarter from ₹2,336.79 crore in the corresponding quarter of FY21,
Exceptional costs
“Dabur braved the inflationary headwinds to end the quarter with a 0.4 per cent growth in net profit before exceptional items at ₹379 crore. An impairment of goodwill in respect of Hobi Kozmetic, Turkey, amounting to ₹85 crore was provided due to the steep devaluation in Turkish currency over the past one year. Including this impairment, reported net profit for the fourth quarter of 2021-22 stood at ₹294 crore,” the company said in an earnings statement.
It added that the company’s total expenses increased by 8.7 per cent to ₹2,141.04 crore from ₹1,969.54 crore in FY21. The revenue from the consumer care business increased 4.25 per cent to ₹2,095.15 crore from ₹2,009.63 crore in FY21. Revenue from the food business showed an increase of 31.28 per cent to ₹359.90 crore from ₹274.14 crore.
Market share gains
“Despite the consumption slowdown and shrinkage in overall demand, Dabur reported market share gains across 99 per cent of its product portfolio. In juices and nectars, Dabur grew ahead of the category and improved its market share by 610 bps. Dabur also reported a 250 bps gain in its Chyawanprash market share and a 40 bps gain in shampoo market share during the quarter,” the company statement said.
Dabur’s retail business decreased 3.76 per cent to ₹22.26 crore from ₹23.13 crore in FY21.
“The Egypt business grew by over 12 per cent, while the Namaste business was up 11 per cent and the Turkey business posted a growth of over 47 per cent,” the company said.
Dabur India CEO Mohit Malhotra said FY22 was a strong year for Dabur as it ended with an industry-leading revenue growth of 13.8 per cent in India with an underlying FMCG volume growth of 10.1 per cent for the full year.
“We also ended the year with a 15.8 per cent constant currency growth in the international business,” he said.