Dabur India gains after Q1 rises 28% YoY, buoyed by strong volume growth

Dabur India advanced 2.76% to Rs 615.75 after the company reported 28% rise in consolidated net profit to Rs 437.33 crore on a 31.9% increase in revenue from operations to Rs 2,611.54 crore in Q1 FY22 over Q1 FY21.

As compared with Q4 FY21, the company's net profit and revenues have risen by 15.8% and 11.8%, respectively.

Profit before tax in Q1 FY22 stood at Rs 567.99 crore, up by 34% from Rs 423.82 crore in Q1 FY21. Current tax outgo rose by 59.3% YoY to Rs 126.34 crore during the period under review.

Dabur India said that continued investments behind the power brands and increasing distribution footprint, coupled with a structured and balanced approach to driving cost management, helped the company overcome the challenging context of COVID second wave.

Dabur's India FMCG Business grew by 35.4%, with an underlying volume growth of 34.4% in the first quarter of 2021-22.

Dabur continued to post strong growth and market share gains across all key verticals like health care, home care, personal care and foods in Q1 2021-22. E-Commerce reported an over 100% growth and today contributes to 8.2% of the India FMG business.

The company's focus on innovation, a widened product portfolio and a revival in in-home consumption in line with the growing consumer need for health helped Dabur's Food & Beverages business end Q1 2021-22 with an 80.4% surge.

The company's Healthcare business reported a strong 30% growth in Q1 with the ayurvedic OTC business growing by over 52%, ayurvedic ethicals business reporting a growth of nearly 51% and the Health Supplements category ending the quarter with a 24.5% growth.

The revival in discretionary spending continued during the quarter, which helped the Home & Personal Care business grow by over 26%. The HairCare category was up nearly 39% during the first quarter, while the Home Care business grew by over 30% and the Oral Care business by over 21%. The Skin Care and Salon business (excluding Sanitisers) reported a 66% growth during the quarter.

Dabur's International Business continued to move ahead on the growth trajectory with an over 34% jump in constant currency terms. The MENA (Middle East and North Africa) business grew by nearly 49%, while the Egypt business was up 43%, Namaste by over40% and the SAARC business posted a growth of 41% during the quarter.

Mohit Malhotra, chief executive office, Dabur India, said: "Riding on the strength of its strategic business transformation exercise, Dabur demonstrated renewed agility and resilience in the face of the second wave of COVID-19. We applied learnings from last year on streamlining the supply chain to ensure minimal disruption in supplies while firmly focusing on delivering volume-led profitable growth. Our operating margin reported a 32.5% growth during the quarter, which marked a 10 bps gain despite high inflationary pressures.

While the operating environment was challenging and the competitive intensity high, we have successfully tapped the growth opportunities to deliver a strong performance during the quarter. We continue to invest ahead of the curve in expanding our rural footprint. We have expanded our rural coverage by 16%, from 60,000 villages at the end of 2020-21 to 69,000 villages in Q1 2021-22. We plan to further expand it by 33% to 80,000 villages over the next 2 years.

Dabur India is one of India's leading FMCG companies and is one of the world's largest ayurvedic and natural health care company. Dabur India's FMCG portfolio today includes nine distinct Power Brands: Dabur Chyawanprash, Dabur Honey, Dabur Honitus, Dabur PudinHara and Dabur Lal Tail in the Healthcare space; Dabur Amla, Dabur Red Paste and Vatika in the Personal Care category; and Rl in the Foods space.

Powered by Capital Market - Live News