Advertising and publicity expense increased 4.1% YoY to Rs 225.4 crore in Q2 FY25. A&P expenditures constitute 7.4% of revenue from operations.

Operating profit stood at Rs 552.5 crore in Q2 FY25, down 16.4% as compared with Rs 660.9 crore in Q2 FY24.

The company’s lnternationaI Business reported strong constant currency growth of 13% during the second quarter. The Egypt business reported a near 730% CC growth, while MENA business grew by 10% and Sub-Saharan Africa grew by 26%. The Badshah business also reported a15% growth in Q2.

Mohit Mathotra, chief executive officer, Dabur lndia, said, “Over the past couple of years, we have witnessed a marked shift in consumer buying patterns in favour of emerging channels like quick commerce, driven by the convenience this channeI offers. This has resulted in the emerging channels growing at high teens, putting the General Trade under stress. To address the changing dynamics in the marketplace and support our distributor partners in tiding over the challenges, we took a proactive decision to rationalize inventory in the GeneraI Trade, which resulted in a temporary dip in sates during the quarter. However, the move has resulted in improving the long-term health and hygiene of our business, paving the way for healthy growth going forward."

We expect recovery in consumer demand in the coming quarters, both in urban and rural markets. We are focusing on strengthening our competitive edge in the marketplace by investing in scaling up our rural footprint and rolling out consumer-centric innovations. Our focused approach towards expanding our rural footprint to over 1.22 lakh villages reaped rich dividend as rural demand outpaced urban demand by 130 bps during the quarter.”

Meanwhile, the company’s board declared interim dividend of Rs 2.75 per share for FY25. The record date for the same is fixed at 8 November 2024 and the dividend will be paid after 22 November 2024.

Further, the company has entered into an lmplementation Agreement (IA) to merge Sesa Care with itself. Sesa is a leading brand in the Ayurvedic hair care market with a strong brand equity.

As a part of the transaction, The FMCG company will acquire 51% of the paid up Cumulative Redeemable Preference Shares (CRPS) of Sesa Care from its existing shareholders, True North (a private equity fund), for Rs 12.59 crore at face value.

The enterprise value is estimated to be in the range of Rs 315-325 crore, including debt of Rs 289 crore, which will be backed by the corporate guarantee of the company.

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 counter jumped 2.07% to end at Rs 546.95 on the BSE.