Dabur records Rs 186 crore Q1 net profit

The company's consumer care bsuiness revenue stands at Rs 1,343 crore as against Rs 1,175 crore y-on-y basis

The Fast Moving Consumers' Goods (FMCG) major Dabur India has recorded a net profit of Rs 186 crore 24.99% increase in the first quarter ended June 30, 2013 on the back of good performance of FMCG segment, price hikes and cost efficiency measures.

The company reported net profit of Rs 149.64 crore in the corresponding quarter last year.

Dabur's net sales went up by 12.93% to Rs 1,651.1 crore in the quarter under review compared to Rs 1,461.97 crore in the corresponding quarter a year ago.

The overall performace of the company is quiet satisfactory. The total income of the company stands at Rs 1,656.5 crore.

The company's consumer care bsuiness revenue has been recorded at Rs 1,343 crore as against Rs 1,175 crore year-on-year basis.

The volume growth stands at 9%. The company has maintained a volume growth guidance of 8-12% for FY14.

Its operating margin stood at 14.5%. The company's ad spends increased 11% at Rs 254 crore. Ad spends have been in line with spends seen in Q1FY13. Ad spends will be contained as per guidance set out for FY14.

The company's EBIDTA margins increased 14.5% and stands at Rs 241 crore.

The company's consumer care business revenue was at Rs 1,343 croe as against Rs 1,175 crore year-on-year basis. Apart from that, it recorded tax expenses at Rs 48.4 crore against Rs 37.8 crore year-on-year basis.

 

Its consumer care business profit stands at Rs 277 crore against Rs 239 crore year-on-year basis. The food business profit was at Rs 38.3 crore as against Rs 33.4 crore year-on-year basis.

The food business has been impacted due to fluctuations in exchange rates. International buisness contributed 32% to the Q1 performance.

"We have managed our business dynamically through a combination of calibrated price increases and greater focus on cost efficiencies," Chief Executive Officer Dabur India Ltd, Sunil Duggal, said in a statement.

 

Despite signs of an economic downturn and increased competitive intensity in the market, the company has reported strong volume growth in its key categories, he added.

 

"Our domestic FMCG business grew at a strong 13.2% driven by a volume growth of 9%," Duggal said.

 

The retail business clocked 27.05% increase in revenue at Rs 16.86 crore.

 

"Dabur's retail business, under NewU, has marked a turnaround with a substantial reduction in losses and the business has attained store-level profitability," Dabur said.
 

 

On the overall expenses front, Dabur reported 12.46% jump at Rs 1,444.35 crore in the quarter ended June 30 this year as against Rs 1,284.27 crore in corresponding quarter last year.

 

International business, including acquisitions, ended the first quarter with 17.5% growth, led by Egypt, GCC and Nepal, the company said without elaborating.

 

Commenting on future outlook for company Duggal said, "The macro-economic pressures notwithstanding, we remain on course to strengthen our brand portfolio and improve our competitiveness in the market place."

 

The company paid final dividend at the rate of Rs 0.85 per share (85%) for FY 2012-13 aggregating to Rs 173.33 crore.

 

Shares of Dabur India were trading at Rs 172.75 per scrip in the afternoon trade, up 1.11% from previous close on BSE.