Dabur India spurts as PAT rises 8% YoY in Q3 FY24

Dabur India jumped 5.39% to Rs 566.70 after the FMCG major's consolidated net profit rose 8.04% to Rs 514.22 crore on 6.96% increase in revenue from operations to Rs 3,255.06 crore in Q3 FY24 over Q3 FY23.

The firm stated that revenue growth was driven by steady performance of both the Home & Personal care and Food & Beverages businesses.

Consolidated revenue growth for the quarter stood at 10% on a constant currency basis.

EBITDA stood at Rs 795.2 crore, registering the growth of 11.9% YoY while EBITDA margin improved to 24.4% during the quarter as against 23.4% posted in same quarter last year.

Dabur's India Business ended the third quarter with a volume growth of 6%. Riding on the strength of its consumer-focused product portfolio, superior brand communication and excellence in go-to-market execution, Dabur continued to build and sustain its growth momentum, posting category-leading growths with market share gains across the portfolio, despite of the delay in onset of winters slightly impacting the healthcare and winter portfolio.

The FMCGs International Business reported a growth of 11.7% in constant currency terms. The Nigeria business grew by 52%, while the Turkey business was up 44% and the Egypt business ended with a 43% growth.

Dabur's Digestive business ended the quarter with an over 15% growth while the Ayurvedic Ethicals business grew by nearly 7% in Q3. Dabur's Shampoo and Post-Wash category reported an over 11%growth.

The Toothpaste business ended the quarter with an industry leading over 8% jump, backed by toothpaste volume growth of 5%.

The Home Care business reported a 7% growth while the Beverages business returned to the growth trajectory and ended the quarter with a 7% growth. The Foods business, including Badshah, ended the quarter with a 22% growth.

With the business fundamentals remaining strong, Dabur posted market share gains across the portfolio, led by a 140bps improvement in Hair Oils market share. Dabur also reported an 184 bps gain in Air Freshener market share and 151 bps gain in Chyawanprash market share.

Mohit Malhotra, chief executive officer of Dabur India said, We remain intensely focused on our strategies of managing an agile and accountable organization structure with a focus on superior product delivery and constructive disruption to drive sustainable, profitable growth across our portfolio. Moderating inflation coupled with buoyant consumer sentiments and our focussed investment in distribution footprint expansion in rural India helped demand from the hinterland bounce back for Dabur. Rural demand for Dabur grew 200 bps ahead of urban. We have also stepped-up investment behind our brands to drive competitive volume growth, reflected in our higher advertising spends during the quarter.

We have been investing in growing our rural footprint, which has expanded by 17,000 villages in the current fiscal from 100,000 to 117,000. We are working towards ending this year with a rural coverage of 1.2 lakh villages. Dabur's rural distribution has, in fact, been the highest in the industry, giving us a distinct advantage and helping drive our rural growth, Malhotra added.

Meanwhile, the board has approved capital expenditure of around Rs 135 crore for setting up a new plant in South India for capacity expansion of Red Toothpaste, Odonil and Honey.

Dabur India is one of India's leading FMCG companies. It is one of the world's largest ayurvedic and natural health care company.

The scrip rose 0.60% to end at Rs 539.05 on the BSE.

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