Dabur Q4 results: Profit up 16% at Rs 349.5 cr, rural business beats urban

The maker of Real fruit juices and Hajmola candy saw its rural business outpacing urban in the last quarter on the back of a growing distribution system in the rural areas

Home-grown fast moving consumer goods (FMCG) company Dabur India on Thursday reported a 16.2 per cent year-on-year (Y-o-Y) increase in consolidated net profit to Rs 349.5 crore in the fourth quarter ended 31 March 2024, in line with analyst estimates.

Analysts, tracked by Bloomberg, had expected a profit of Rs 342.6 crore. The company had reported a net profit of Rs 300.8 crore in the same period last year.

For the full year, consolidated net profit for 2023-24 saw a 7.9 per cent jump to Rs 1,843 crore from Rs 1,707 crore a year ago.

The maker of Real fruit juice and Hajmola candy saw its rural business outpacing urban in the last quarter on the back of a growing distribution system in the rural areas. 

“Our rural coverage expanded by 22,000 villages during the year to 122,000 villages. We have seen demand from the hinterland outpace urban demand by 400 bps in the fourth quarter. While rural reported an 8.2 per cent growth, urban markets grew by 4.2 per cent,” said Mohit Malhotra, chief executive officer, Dabur India during an earnings call with investors after announcing the company’s results.

The company’s net sales rose 5.1 per cent to Rs 2,814.6 crore from Rs 2,677.8 crore in the same period last year. It reported a volume growth of 4.2 per cent during the fourth quarter and 5.5 per cent in the full year.

The company is working towards strengthening its summer portfolio, with the launch of talcum powders under the ‘Cool King’ range, Malhotra added during the call.

“We are following the mandated regulatory norms laid down by FSSAI. As of now, nothing from our portfolio has been highlighted,” he said, talking about the increased vigilance on spices.

“We have ended the year with a steady performance. We have been investing heavily behind our brands, which increased by 33 per cent, to drive demand and also sustain the growth momentum. This has helped us deliver steady sales and profit growth in the fourth quarter despite multiple headwinds,” said Malhotra in an earnings release.

The company added that it has witnessed market share gains in 95 per cent of its portfolio. Premium products today account for 18 per cent of its portfolio, it added.

The company also announced a dividend of Rs 2.75 per share aggregating to Rs 487.31 crore.