Dabur India surges 9% as domestic FMCG biz posts 21% volume growth in Q1

The stock surged 9% to Rs 429, its new high on the BSE in intra-day trade, after the company reported a better-than-expected domestic FMCG volume growth of 21% in June quarter.

Shares of Dabur India have surged 9% to Rs 429 per share, also their new high on the BSE in intra-day trade, after the company reported a better-than-expected domestic volume growth of 21% in June quarter (Q1FY19).  Analysts had expected volume growth in the range of 10% to 15% for the quarter.

The fast moving consumer goods (FMCG) major reported 19.6% year on year (yoy) jump in its comparable consolidated revenue at Rs 20.81 billion in Q1FY19.

“Growth in domestic FMCG was 23.7% backed by one of the highest ever volume growth of 21%,” Dabur India said in a press release.

The company reported 25% yoy rise in its consolidated net profit at Rs 3.29 billion as against Rs 2.64 billion in Q1FY18. On an operating level, the earnings before interest, taxes, depreciation and amortisation (EBITDA) margin during quarter under review improved to 18.6% from 17.3% in previous year quarter.

“Despite an increase in the level of competitive intensity, our brands reported a robust performance during the quarter, growing ahead of the market and delivering strong double-digit growth across all our key categories like Health Supplements, Hair Care, Oral Care, Skin Care, Home Care and Foods. Our India FMCG business, in fact, reported it’s highest-ever volume growth of 21% during the quarter,” Dabur India Chief Executive Officer Sunil Duggal said.

At 02:37 pm; the stock was trading 8% higher at Rs 425 on the BSE, as compared to 0.08% rise in the S&P BSE Sensex. The trading volumes on the counter nearly doubled with a combined 15.51 million equity shares changed hands on the NSE and BSE so far.