Dabur ad spends up 36% in consolidated business for Q3 2023-24
Operating profit rose 9.5% and revenue is up by 7%
Ayurveda company Dabur India Limited today announced its financial results for the quarter ended December 31, 2023.
In Q3 2023-24, its Consolidated Revenue from Operations is up 7% at Rs 3,255 crore. Q3 Consolidated Revenue reports 10% Constant Currency growth. Consol. Operating Profit posts a 9.5% growth. Net Profit is up 8% at Rs 514.2 crore. Its India FMCG Volume Growth stands at 6% and International Business posts 11.7% Constant Currency growth.
Dabur India Limited ended the third quarter of 2023-24 with a 7% growth in Revenue from Operations at Rs 3,255 Crore, driven by steady performance of both the Home & Personal care and Food & Beverages businesses. Revenue stood at Rs 3,043.2 Crore in Q3 of 2022-23. The Q3 Revenue growth stands at 10% on Constant Currency basis.
Riding on the strength of its consumer-focused product portfolio, superior brand communication and excellence in go-to-market execution, Dabur continued to build and sustain its growth momentum, posting category-leading growths with market share gains across the portfolio. Despite the delay in onset of winters slightly impacting the Healthcare and Winter portfolio, Dabur’s India Business ended the third quarter with a Volume Growth of 6%.
Operating Profit for the quarter marked a 9.5% jump. Consolidated Net Profit for the quarter marked an 8% jump to Rs 514.2 Crore, up from Rs 475.9 Crore a year earlier. Advertising spends for the quarter marked a 36% growth in the Consolidated business and 30% in the Standalone business.
“We remain intensely focused on our strategies of managing an agile and accountable organization structure with a focus on superior product delivery and constructive disruption to drive sustainable, profitable growth across our portfolio. Moderating inflation coupled with buoyant consumer sentiments and our focussed investment in distribution footprint expansion in rural India helped demand from the hinterland bounce back for Dabur. Rural demand for Dabur grew 200 bps ahead of urban. We have also stepped-up investment behind our brands to drive competitive volume growth, reflected in our higher advertising spends during the quarter” Dabur India Limited Chief Executive Officer Mohit Malhotra said.
“We have been investing in growing our rural footprint, which has expanded by 17,000 villages in the current fiscal from 100,000 to 117,000. We are working towards ending this year with a rural coverage of 1.2 lakh villages. Dabur’s rural distribution has, in fact, been the highest in the industry, giving us a distinct advantage and helping drive our rural growth,” Mr. Malhotra added.
Category Growth
Dabur’s Digestives business ended the quarter with an over 15% growth while the Ayurvedic Ethicals business grew by nearly 7% in Q3. Dabur’s Shampoo and Post-Wash category reported an over 11% growth. The Toothpaste business ended the quarter with an industry leading over 8% jump, backed by Toothpaste Volume growth of 5%. The Home Care business reported a 7% growth while the Beverages business returned to the growth trajectory and ended the quarter with a 7% growth. Our Foods business, including Badshah, ended the quarter with a 22% growth.
With the business fundamentals remaining strong, Dabur posted market share gains across the portfolio, led by a 140bps improvement in Hair Oils market share. Dabur also reported an 184bps gain in Air Freshener market share and 151bps gain in Chyawanprash market share.
International Business
Dabur’s International Business reported a growth of 11.7% in Constant Currency terms. The Nigeria business grew by 52%, while the Turkey business was up 44% and the Egypt business ended with a 43% growth.
