Dabur India Limited, one of the leading Science-based Ayurveda companies in India has recently announced its financial results for the quarter ended September 30, 2023.
Second Quarter 2023-24 Financial Highlights:
– Q2 2023-24 Consolidated Revenue from Operations up 7.3% at INR 3,203.8 crores;
– Q2 Consolidated Revenue reports 10.4% Constant Currency growth;
– Consol. Operating Profit posted a 10% growth; Excluding exceptional legal costs, Operating Profit surges 16%;
– Q2 Net Profit up 5.1% at INR 515.1 crores; Excluding exceptional legal costs, Net Profit up 14.1%;
– India FMCG Volume growth of 3%; With Badshah, it stands at 5.8%;
– International Business posts 23.6% Constant Currency growth.
Dabur India Limited ended the second quarter of 2023-24 with a 7.3% growth in Revenue from Operations at INR 3,203.8 crores, driven by steady performance of both the Home & Personal care and HealthCare businesses. The Q2 Revenue growth stands at 10.4% on a Constant Currency basis.
The India Business saw our key brands and products posting category-leading growths with market share gains across 90% of our product portfolio. The India FMCG Business ended the second quarter with a volume growth of 3%.
Consolidated Net Profit for the quarter marked a 5.1% jump to INR 515.1 crores, up from INR 490.1 crores a year earlier. Our Net Profit without the exceptional legal costs increased by 14.1%. Ad Spends for the quarter marked a 42.6% growth in the Consolidated business and 40.3% in the Standalone business. Consolidated Operating Profit posted a 10% growth during the quarter.
“We have delivered steady Revenue and double-digit Operating Profit growth with improvement in gross margins led by moderating inflation. We believe we are on the right path with our strategic playbook. We remain focused on managing our business with agility, leveraging our strong distribution footprint while enhancing our margins, quarter after quarter,” Dabur India Limited Chief Executive Officer Mohit Malhotra stated.
“We have witnessed a marked sequential improvement in urban demand, led by new-age channels. While the rural growth still lags urban demand, the gap has reduced. We are increasingly optimistic of the future as we are seeing green shoots of recovery in Rural sentiments. We will continue to invest behind our brands, distribution infrastructure and innovation to deliver volume-led profitable growth,” Mohit Malhotra added.
Dabur’s International business continued its strong growth momentum with a 23.6% jump in Constant Currency terms in the second quarter. During the quarter, the MENA business grew by 18.4%; Egypt by 35% and the Turkey business by 78%.
Category Performance
Dabur’s Digestive business, riding on steady performance of its flagship brand Hajmola, grew by 18.1%, while the Home Care business reported a 15.1% growth. The Ayurvedic OTC and Ethicals business grew by 8.1%. Our flagship toothpaste franchise Dabur Red ended the quarter with a high single-digit growth with continued market share gains. While the unseasonal rains in our key North Indian markets impacted the beverage business during the quarter, the Foods business ended with a 40.4% surge. The recently acquired Badshah brand reported a 16.4% growth during the quarter.
Dividend
The Board of Directors of Dabur India Ltd. declared an Interim Dividend of 275% for 2023-24. “Continuing with our payout policy, the Board has declared an Interim Dividend of INR 2.75 per share, aggregating to a total payout of INR 487.31 crores,” Dabur India Ltd. Chairman Mohit Burman stated.
Sustainability Focus
Dabur is progressing well to meet its long-term sustainability commitments. The quarter saw a 140% improvement in Dabur’s ranking on DJSI (Dow Jones Sustainability Index). With this, Dabur has been ranked amongst the leading Corporates in India on the Sustainability Index. Paving the way towards a more sustainable future, Dabur has targeted to achieve Net Zero in its entire value chain by 2045.