Dabur said that the quarter saw sequential improvement in demand trends with rural growth picking up. With forecast of a normal monsoon and continued focus by the government on macro-economic growth, the firm expects the improvement to accelerate in the coming months.
The company added that its India business is expected to record mid-single digit volume growth.
In India business, HPC & Healthcare business, 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 the company’s beverage segment although the food (culinary) category showed good momentum. Badshah masala continued to perform well and is expected to post strong volume led growth in high teens, it added.
Dabur’s 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. Gross margins are likely to witness some expansion on account of roll over price increases and cost-saving initiatives. The business continued to invest strongly behind the brands with advertising & promotional (A&P) spends growing ahead of revenue. Consequently, the operating profit is expected to grow marginally ahead of revenue, the company stated in the press release.
Further, the FMCG company said that it continues to focus on its strategy to increase its distribution reach, invest aggressively on the firm’s key brands and drive increase in its market shares across the portfolio.
Dabur India is among the top four FMCG companies in India. It has business interests in healthcare, personal care and food products. The company offers products in over 100 countries across the globe, covering health and personal care segments across the herbal and natural space.
the company’s consolidated net profit jumped 16.2% to Rs 350 crore in Q4 FY24 as compared with Rs 301 crore in Q4 FY23. Revenue from operations increased 5.11% YoY to Rs 2814.64 crore in the quarter ended 31 March 2024.
The scrip rose 0.03% to end at Rs 606.40 on Friday, 5 July 2024.