Dabur India on Friday said it expects its consolidated revenue to register “mid-to-high single digit” growth during Q1 FY25. The company said it also witnessed a pick-up in rural growth with the quarter witnessing a “sequential improvement” in demand trends.

“India business is expected to record mid-single digit volume growth. In India business, HPC & Healthcare segment is expected to grow in high-single digits. Travel and out of home consumption got impacted due to scorching summers, which had an impact on our beverage segment although the food (culinary) category showed good momentum,” the FMCG major said in a BSE filing.

The company also expects gross margins to see some expansion on the back of roll over price increases and cost-saving initiatives. “The business continued to invest strongly behind the brands with A&P spends growing ahead of revenue. Consequently, the operating profit is expected to grow marginally ahead of revenue,” it noted.

Positive factors

Dabur India also expect the improvement in demand trends to accelerate in the coming months supported by a normal monsoon and the government’s continued focus on macro-economic growth.

“Badshah Masala continued to perform well and is expected to post strong volume led growth in high teens. The International Business is expected to post strong growth in constant currency terms. However severe currency depreciation in Turkey and Egypt continued to have an impact on translated growth. Commodity prices were stable during the quarter,” the company added in the quarterly update performance released, ahead of its results for Q1.

It also said that it is continuing to put focus on strategy to increase its distribution reach, invest aggressively on its key brands and drive increase in our market shares across the portfolio.

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