Dabur profit jumps 17%

Dabur India’s March quarter net profit grew 17 per cent year-on-year (y-o-y) to Rs 333 crore, despite loss of sales because of lower supply of Real fruit juices. The company had posted Rs 285 crore net profit during the same period last year. The fast-moving consumer goods major received Rs 2,157 crore in net sales, 11 per cent higher than Rs 1,995 crore in 2015.

Due to better cost management and lower raw material costs, the company’s earnings before interest, taxes, depreciation and amortisation (Ebitda) margin improved by 120 basis points to 20.8 per cent on a y-o-y basis. Dabur’s January-March, 2016 Ebitda was Rs 471.7 crore.

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“We had to deal with a tough economic environment characterised by extreme volatility in currency, as well as geopolitical disturbances in key geographies. We have taken steps to efficiently manage emerging risks and challenges. Our domestic FMCG business grew at 8.5 per cent during fourth quarter, 2015-16, led by seven per cent volume growth,” said Sunil Duggal, chief executive, Dabur India.

Dabur’s manufacturing unit in Nepal produces nearly 60 per cent of its juices sold in India. Political turbulence in Nepal over the promulgation of a new constitution, which led to roadblocks on the Indo-Nepal border, had forced the company to shut down its Birgunj production unit for two days in October.

Real fruit juice accounts for a fifth of Dabur’s total revenue. During the September quarter, its foods business declined 23.7 per cent due to supply disruptions in Nepal.

During the quarter, two brands — Dabur Gulabari and Lal Tail — crossed Rs 100 crore sales mark, taking the tally of Dabur’s Rs 100 crore-plus brands to 16. Out of these, Real, Amla and Vatika generate more than Rs 1,000 crore in revenue.

The company’s international business grew 15.7 per cent, led by Egypt (27 per cent), Nepal (19.6 per cent), Turkey (8.5 per cent) and the Namaste business in the US.

During FY16, Dabur posted net profit of Rs 1,255.5 crore, 18 per cent higher than FY15. Its consolidated net sales grew by 8 per cent to Rs 8,436 crore, compared with Rs 7,806.4 crore in 2014-15. Dabur lost more than Rs 100 crore business because of lower sale of Real juices.