Dabur net jumps 9% on cost-saving initiatives

Boosted by good growth across segments, Dabur India on Wednesday reported 8.5 per cent increase in its consolidated net profit at Rs 147.04 crore for the fourth quarter ended March 31.

The company had reported a net profit of Rs 135.5 crore in the corresponding period last financial year. Net sales during the fourth quarter of the year grew by 30.6 per cent to Rs 1108.22 crore from Rs 848.6 crore, the company said in a statement.

Dabur India said its board has also recommended a final dividend of 65 per cent, taking the total dividend for the year 2010-11 to 115 per cent.

"While the external environment and inflation in raw material prices continued to play truant, a combination of calibrated price increases and cost management initiatives helped Dabur report a 28 per cent growth in earnings before interest, taxes, depreciation and amortization during the fourth quarter," Chief Executive Officer Sunil Duggal said in the statement.

During the quarter, the consumer care business registered a revenue of Rs 873.30 crore, while consumer health business had a revenue of Rs 86.07 crore. The foods portfolio, which includes brands such as Real, Activ and Hommade, reported a revenue of Rs 126.44 crore.

For the year ended March 31, 2011, consolidated net profit stood at Rs 568.9 crore, a 13.23 per cent growth over the Rs 502.42 crore earned in the previous year. During the period, the firm's net sales jumped 20.26 per cent to Rs 4,077.4 from Rs 3,390.5 posted in the previous financial year.

Dabur said its global business (including Hobi Kozmetik of Turkey and US-based Namaste Laboratories) grew 46.3 per cent, led by robust performance in Gulf, Egypt, Nigeria, Levant and North African markets.