 "Dabur Q1 profit marginally rises to Rs 441 cr amid inflationary headwinds")
Homegrown FMCG major Dabur India Ltd on Thursday reported a marginal increase in its consolidated net profit at Rs 441.06 crore for the June quarter as the inflationary headwinds continued during the period.
The company had posted a net profit of Rs 438.30 crore in the April-June quarter a year ago, Dabur India said in a regulatory filing.
Its revenue from operations was up 8.07 per cent at Rs 2,822.43 crore during the quarter under review as against Rs 2,611.54 crore in the corresponding period of the previous fiscal.
The company continued to demonstrate "agility and resilience" to deliver steady revenue growth despite consumer sentiments dwindling in the face of significant and increasing inflationary headwinds, said an earning statement by Dabur India
"Dabur mitigated the impact of unprecedented inflationary pressures and supply chain constraints through disciplined cost control and judicious price hikes across categories," it said.
The company said its domestic FMCG business reported a 5 per cent volume growth.
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Dabur India's total expenses were at Rs 2,358.52 crore, up 10.81 per cent in the June quarter. The same stood at Rs 2,128.32 crore last year.
In April-June period, Dabur's consolidated revenue from the consumer care business segment was down 1.47 per cent at Rs 2,135.90 crore compared to Rs 2,167.93 crore in the year-ago period.
However, revenue from the food business was up 51.25 per cent at Rs 608.78 crore. It was Rs 402.48 crore in the preceding year.
Revenue from its retail business was up two-fold at Rs 25.67 crore from Rs 9.17 crore previous year.
While revenue from other segments was up 64.43 per cent at Rs 41.98 crore as against Rs 25.53 crore in the same quarter of FY22.
Dabur's International business reported a growth of Rs 8 per cent in constant currency terms led by markets such as that of Turkey, Sub-Saharan Africa, Nepal and Egypt.
Its standalone revenue from operations was up 9.92 per cent at Rs 2,179.73 crore against Rs 1,982.84 crore.
Its CEO Mohit Malhotra said Dabur's brands continued to grow significantly ahead of the market, gaining market shares across all key categories.
"Despite the macro-economic headwinds, we remained focused on rolling our consumer-centric innovation that expanded our total addressable market and report strong, sustainable, profitable growth.
"The demand environment remained stressed in view of the heavy inflation, which saw consumers switch to more affordable smaller packs of branded consumer goods," Malhotra added.
Both rural and urban demand growth have been at par Dabur.
"Rural demand for Dabur was driven by the ahead-of-the-curve investments in expanding our rural footprint to over 91,500 villages in the first quarter, up from 89,800 villages in March 2022. Urban growth, on the other hand, was driven by new-age channels like Modern Trade, which grew by 42 per cent during the quarter," said Malhotra.
On Thursday, shares of Dabur India Ltd settled 0.94 per cent up at Rs 574.85 apiece on BSE.
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