Dabur, a leading FMCG company, announced that its consolidated profit for the March quarter increased by 2.25% YoY to reach INR 300.83 crore, and its revenue rose by 6.35% YoY to INR 2,677.80 crore.
As part of its announcement, Dabur declared a final dividend of INR 2.70 per share for the financial year 2022-23.
Dabur’s PAT margin for the quarter was 11.2%, while the operating profit margin contracted by 270 basis points to 15.3% due to material inflation. In constant currency terms, the company’s revenue growth was 8.6%. In terms of revenue, Dabur’s standalone India business increased by 4.7%, and its international business recorded growth of 1.4% in rupee terms and 9.6% in constant currency terms.
Dabur achieved volume case growth of 11% at the end of the quarter and 14% for the year.
Dabur India CEO Mohit Malhotra, said, “During the year, we faced high inflation, which was partly mitigated by price increases to the tune of 6%. Consumer promotions were offered to soften the impact of price hikes on consumption, which resulted in flatfish Value-weighted Volumes for both the fourth quarter and the year. This 11% Case Growth has helped increase the penetration and market share of our brands across categories in line with our ‘Ghar Ghar Dabur’ strategy.”
“Our performance in a tough inflationary environment aptly demonstrates the power and consistency of Dabur’s strategic playbook, which helped us capitalize on our brand strength while continuing to innovate and deepen our engagement with our consumers,” he added.
The CEO stated that although there are concerns about inflationary pressures in the near-term, the company intends to maintain its growth momentum by investing in brand building, innovation, and capabilities that will fuel future growth.
Segment revenue:
Dabur’s oral care penetration rose to 50.8%, and the hair oils business achieved a 130 basis points gain in market share, reaching its highest-ever share of 17%.
Dabur’s Food & Beverages business experienced a growth of 30% during the year, with its Juices & Beverages business also growing at around 30%. The Home Care business had a robust performance in the air fresheners category, resulting in a growth of 23.4% at the end of the year.
The Digestives business had a growth of 10.4% during the year, and the Shampoo portfolio grew by 8%. Despite the challenges posed by the Covid pandemic, the Healthcare business achieved a 3-year CAGR of approximately 10%. Dabur’s market share in the air freshener category saw a surge of 140 basis points, and its shampoo market share increased by 30 basis points.
In the quarter, Dabur’s Turkey business grew by 90%, while its Egypt business increased by 28%, and Nepal business reported a growth of 17%.
Dividend:
Dabur’s board of directors today recommended a final dividend of 270%, taking the total dividend for 2022-23 to 520%. “In line with our payout policy, the board has proposed a dividend of INR 2.70 per share, aggregating to INR 478.38 crore,” Dabur Group Director PD Narang said.
