Dabur, the FMCG giant, has been investing in expanding its rural footprint, which has driven the demand for its brands better by nearly 400 basis points than in urban areas, the company stated.
Furthermore, Dabur has boosted its investments in consumer activation within rural areas to extend the reach of its products.
“We’ve expanded our product offerings in rural markets by introducing new affordable and rural-specific packs across various categories. This strategic move aims to cater to the unique needs of these markets and drive demand growth,” the company stated.
Dabur CEO Mohit Malhotra emphasized that the company boasts the highest rural distribution, a key factor in its growth.
Continue Exploring: Dabur India delivers strong Q4 performance, PAT surges 16.2% to INR 350 Cr; board announces dividend of INR 2.75
“Our rural coverage expanded by 22,000 villages to reach 122,000 villages during the year. Dabur’s rural distribution stands out as the highest in the industry, providing us with a distinct advantage and driving rural growth. These proactive investments have led to our rural business outpacing urban growth by 400 basis points,” he explained.
The company’s CFO, Ankush Jain, also mentioned that volume growth for FY25 is anticipated to surpass that of FY24, with a more favorable recovery rate expected from Q2 onwards through Q3.
In this quarter, Dabur also reported a 13.9 percent increase in operating profit, attributed to its effective execution of the Power Brand strategy, enhanced premiumization, and cost reduction measures, among other factors.
“We’ve concluded the year with a consistent performance, highlighting the strength of Dabur’s brands. We’ve significantly increased investments in our brands, up by 33 percent, to stimulate demand and maintain growth momentum. Despite encountering various challenges, this commitment has enabled us to achieve steady sales and profit growth in the fourth quarter,” remarked Malhotra.
The consumer company reported a 16 percent growth in its consolidated net profit, reaching INR 350 crore for the quarter ended March 2024. Revenue from operations also saw a 5 percent year-on-year increase, totaling INR 2,815 crore for the reporting period. Additionally, the Board has proposed a final dividend of INR 2.75 per equity share for the fiscal year 2023-24.
Continue Exploring: Dabur announces INR 135 Crore investment for new greenfield facility in South India
