Rural sales lift Dabur's Q2 profit

Company reports 23% rise in consolidated net profit at Rs 250 cr

Dabur India, on Monday, today reported a 23.40% rise in consolidated net profit at Rs 249.74 crore during the quarter ended September 30, 2013, backed by uptake in rural sales and strong growth in all key categories, including home care, health supplements, shampoos, foods, skin care and oral care.

 

Its consolidated net profit stood at Rs 202.37 crore in the corresponding quarter of last fiscal year.

 

During the quarter under review, its net sales increased 14.85% to Rs 1,748.81 crore, as compared to Rs 1,522.6 crore in the corresponding quarter previous fiscal year.

 

“Strong demand from the hinterland following the mega initiative to double our rural distribution footprint helped Dabur India Ltd sail through a challenging business environment and moderation in consumption expenditure,” the company said in a statement. Consumer care business grew by 18.33% at Rs 1,495.49 crore and foods business rose to Rs 203.39 crore. Category wise, home care business grew 25.3%, oral care category 19%, health supplements business grew by about 17%, skin care by more than 17% and the shampoo business had a 13% growth. 

 

“The rising cost pressures were managed through a mix of judicious price increases and improved buying efficiencies. There are signs of an economic downturn, but Dabur maintained its strong growth momentum and continues to register sales growth ahead of the market in several key categories. We are seeing demand from rural India outpacing the urban markets,” said Dabur India chief executive officer Sunil Duggal.

 

Dabur’s retail business increased 17.36% to Rs 16.56 crore and its international business reported a growth of 25.8% during the July-September quarter, led by 

 

Middle East & North Africa (MENA) and Bangladesh. “Hair Care and Toothpastes were the key growth drivers for Dabur in the international markets,” said Dabur India Ltd Group director P D Narang.

 

Dabur’s consolidated earnings before interest, tax, depreciation and amortisation (EBITDA) increased 22.3% year-on-year to Rs 329 crore and operating profit margin by 120 basis points year-on-year to 18.8% in the quarter under review.