Dabur expects muted revenue growth in Q3; Marico upbeat on top line growth

Homegrown fast-moving consumer goods (FMCG) major Dabur India is set to record low single-digit growth in consolidated revenue in the December quarter, it said in an update on Friday.

 

The maker of Hajmola candy and Real fruit juice said rural consumption continued to be resilient and grow faster than urban in the third quarter.

 

It further said that general trade continued to remain under pressure, while alternative channels like modern trade, e-commerce, and quick commerce registered strong growth.

 

In the September quarter, the company had undertaken a one-time inventory rationalisation exercise for the general trade channel.

 

The company said it witnessed inflationary pressures in certain segments, which were mitigated through “tactical price increases and cost-efficiency initiatives.” The company said it expects a “flattish operating profit growth” in the third quarter.

 

The company expects its health and personal care business to grow in the mid to high single digits, while the healthcare portfolio, which includes Chyawanprash, is expected to be flattish due to the delayed onset of winters. Its beverages business is expected to report muted growth, while the culinary business – Hommade and Badshah – performed well and is expected to post a strong double-digit growth.

 

Meanwhile, Marico – the maker of Parachute coconut oil – stated that its domestic business posted a sequential uptick in underlying volume growth with sustained market share gains across key franchises.

 

“The consolidated business delivered mid-teen revenue growth on a year-on-year basis, thereby staying on course to meet the double-digit growth aspiration on a full-year basis,” the company stated in its quarter update.

 

While Parachute coconut oil remained resilient amid the rising input costs, recording a low teen revenue growth; Saffola oils held firm in volume terms despite steep pricing interventions, posting high teen revenue growth. Its value-added hair oils segment declined marginally due to competitive headwinds.

 

“The rising trend in input costs is expected to result in a higher-than-anticipated gross margin contraction on a year-on-year basis, as the company continued to favour consumer franchise expansion,” it added.