Dabur Q1 net up 29% y-o-y at Rs 91 cr

Beating market expectations, fast-moving consumer goods (FMCG) player, with a presence in the oral care, hair care, skincare, food and healthcare segments, Dabur registered a consolidated net profit increase of 29.4 per cent per cent for the quarter ended June 30, 2009 at Rs 91.39 crore as compared to Rs 70 crore in the corresponding quarter a year ago.

The revenue for the first quarter also increased by 22 per cent to Rs 748 crore, as compared with Rs 612 crore in the corresponding quarter of the previous financial year. “What is encouraging is that this quarter saw the highest volume growth among previous 12 quarters at 16 per cent. The price growth was 3.5 per cent,” said Sunil Duggal, chief executive officer, Dabur India while pointing out that Dabur’s toothpaste business reported 20.7 per cent growth during the quarter, and has increased its share of the toothpaste market to 13.1 per cent from 12.2 per cent a year ago.

However, the maker of Vatika and Gulabari's newly set up retail venture incurred loss of Rs.2.7 crore during the first quarter of the current financial year as against Rs 4.9 crore in the corresponding quarter last year.

The first quarter saw Dabur India roll out a host of new products which include a fruit beverage  Burrst, fragrant light hair oil  Dabur Amla Flower Magic and a new Ayurvedic shampoo under the Dabur brand,  Dabur Total Protect Health Shampoo.

During the quarter, the company also completed the acquisition of Fem Care Pharma, a leading player in the women’s skin care products market. Fem care takeover process completed on June 25, 2009 and results consolidated for 6 days of the quarter.

"The transaction has helped consolidate our position in the high-growth skin care market, where Dabur has now become the third-largest player,” said Dabur Chairman Dr Anand Burman.

Dabur’s overseas business recorded growth of 52.9 per cent, led by robust performance in Gulf Cooperation Council (GCC) region, Egypt, Levant, North African and South Asian markets. Sales in the GCC region reported a 65 per cent growth, while Dabur Egypt witnessed an over 63 per cent growth during the quarter. The South Asian markets saw Bangladesh sales surging by 80 per cent and Nepal by 62 per cent during the first quarter of 2009-10. The quarter also saw Dabur enter three new overseas markets of Uzbekistan, Guinea and Belarus.