Dabur expects single-digit revenue growth, flat operating profit in Q3FY25

Dabur expects a "low single-digit growth" in the December quarter along with a "flattish operating profit" as the homegrown FMCG major faced inflationary headwinds in some of the segments.

This forced Dabur to go for "tactical price increases" and tried to mitigate the inflationary pressure through cost-efficiency initiatives partially, Dabur informed in its quarterly updates on Friday.

During the October-December period, rural consumption of FMCG was resilient and continued to grow faster.

Alternative channels like modern trade, e-commerce, and quick commerce continued to post strong growth, while general trade, which mainly includes neighbourhood kirna stores was still under pressure in the October-December period.

In the domestic market, Dabur's HPC (home & personal care) is expected to grow in the mid to high single digits, while Health Care is expected to be 'flattish' due to the delayed winter onset.

"While the Beverages portfolio is expected to report muted performance, our culinary business under the brand 'Hommade' and 'Badshah' continued to perform well during Q3 and is expected to post strong double-digit growth," Dabur said in an update for the quarter ended December 31, 2024.

However, the company's International Business is expected to register 'double-digit growth' in constant currency terms, led by good momentum in the MENA region (Middle East and North Africa), Egypt, Bangladesh and US business.

"Dabur's consolidated revenue is expected to register low single-digit growth during Q3 FY25," it said.

During the quarter, the company faced 'inflationary pressures' in some segments which were partially mitigated through tactical price increases and cost-efficiency initiatives.

"We anticipate flattish operating profit growth in Q3," it said.

However, with improving macroeconomic indicators, it expects "FMCG growth to revive and sequential improvement" in demand going forward, said the company, which owns power brands such as Dabur Chyawanprash, Dabur Honey, Dabur PudinHara, Dabur Lal Tail, Dabur Amla, Dabur Red Paste, Real and Vatika.

"We remain committed to delivering superior performance across all business segments and enhancing market share within our portfolio. Our strategic priorities continue to centre on brand building, sustained profitable growth, and long-term value creation," the company said.

This update provides an overall summary of the performance and demand trends witnessed during the quarter ended December 31, 2024, and this will be followed by detailed financial results and earnings presentation once its board approves the financial results for the December quarter.

Shares of Dabur India settled at Rs 525.05 apiece, up 2.29 per cent from the previous close on the BSE.