Dabur Q4 net up 17% on strong volume across key categories

Company's net sales in the fourth quarter grew 15.53% to Rs 1,769.02 crore

Dabur India, on Tuesday, reported a 17.32% increase in consolidated net profit at Rs 235.29 crore for the January-March 2014 quarter backed by volume growth in key categories like health supplements, digestives, shampoos, toothpastes, foods and home care.

The company had reported a net profit of Rs 200.55 crore in the corresponding quarter previous fiscal year. Dabur's net sales in the fourth quarter grew 15.53% to Rs 1,769.02 crore as compared with Rs 1,531.09 crore in the corresponding period 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.

Dabur's consumer care business grew 15.22% to Rs1,486.05 crore, foods business grew 19.92% to Rs 231.08 crore, retail business grew 20.46% to Rs 19.07 crore while other businesses declined marginally by 0.24% to Rs 32.82 crore, the company said in a statement.

"The business has performed well on all operating parameters. Dabur has been reporting strong and consistent performance despite intensifying competitive pressures and the challenging market environment being witnessed for some quarters now. Going forward too, our focus will be on pursuing an aggressive and profitable growth strategy," said Dabur India CEO Sunil Duggal.

During the quarter, digestives category grew 23.3%, foods business increased 20.6% on strong demand for packaged juices, while toothpaste business grew 20.7% and shampoo business rose 19%. Dabur's health supplements business also grew 17.6%, followed by home care category at 13 percent.Dabur's international business ended the fourth quarter with 20% growth, led by GCC, Egypt and Levant(comprising Yemen, Jordan, Lebanon& Syria)markets.

"During the full year 2013-14, the Levant business reported a strong 32% growth, while sales in Egypt grew by 20% and GCC markets by 17%," said P D Narang, Group Director, Dabur India.

Dabur's overall expenses rose 15.70% to Rs 1,505.31 crore during the quarter under review, as compared with Rs 1,300.94 crore in the same quarter the previous fiscal year.

During the full fiscal year (2013-14), Dabur India reported a 15.1% growth in net sales at Rs 7,073.21 crore, as compared with Rs 6,146.38 crore in the previous year. Net Profit for 2013-14 rose 19.7% to Rs 913.92 crore.

"Dabur's volume and value growth remained healthy despite the slowdown witnessed in the domestic FMCG industry. However, higher raw material, employee and other expenses have some impact on the company's performance during the quarter," said V Srinivasan, research analyst Angel Broking.

Dabur stock was last traded 1.36% down at Rs 177.70 per share on BSE on Tuesday.