Dabur Q3 net up 15.7% on strong volume, international business

The company had posted net profit of Rs 210.5 crore in the same period of 2012-13 fiscal

Dabur India, on Wednesday, reported 15.7% rise in consolidated net profit at Rs 243.6 crore for the third quarter ended December 2013, backed by strong growth in international business and volume across business verticals. It reported net profit at Rs 210.5 crore in the corresponding quarter previous fiscal year.

Dabur’s consolidated net sales during the third quarter this fiscal year rose by 16.8% at Rs 1,904.3 crore, as compared to Rs 1,630.7 crore reported during the same period the previous fiscal year.

The company said in a statement that its net sales growth was driven by strong volume growth across key categories of health supplements, air care, hair care, oral care, skin care and foods. On the other hand, its International business grew 26% during the quarter, backed by increased sales in markets like Gulf Cooperation Council (GCC), Egypt and Nigeria.

“Our focus on brand-building and market expansion programs coupled with a greater degree of innovation has helped Dabur sustain strong growth in the core categories, which have been significantly ahead of the market. Going forward, our focus will be on pursuing an aggressive and profitable growth strategy,” Dabur India Chief Executive Officer Sunil Duggal said in a statement.

During the quarter, the company said, its health supplements business grew by 9.5%. Air freshener business, backed by Odonil brand, grew more than 27%. Dabur’s foods business also reported a robust near 18% growth. The shampoo business ended the third quarter of the current fiscal year with a strong 24.7% growth.

“The GCC business reported a 21% growth, while sales in Egypt and Nigeria both grew by 16%. Going forward, we will continue to pursue an aggressive growth strategy,” said Dabur India Group Director P D Narang.

The FMCG major has spent about 23.2% more on advertising during the quarter under review, on yearly basis, because of fresh launches. It has spent Rs 290 crore during the period.

Its employee cost also increased 29% to Rs 158 crore during the quarter ended December 2013 from Rs 123 crore in same quarter of previous fiscal.

Earnings before interest, tax, depreciation and amortisation (EBITDA) grew 8.4% year-on-year to Rs 298 crore.