Dabur Q4 profit flat at Rs 333 crore
Net sales down 4.8% y-o-y to Rs 1,909 cr due to economic slowdown in GCC markets
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The net profit of Dabur India, the fast moving consumer goods (FMCG) major, inched up by 0.5 per cent to Rs 333.1 crore over a year before in the quarter-ended March. Net sales fell 4.8 per cent to Rs 1,909 crore, attributed to economic slowdown in the Gulf Cooperation Council markets.
After a six per cent dip in net sales during the December quarter, due to currency demonetisation, domestic sales improved this quarter. Sales by volume grew 2.4 per cent in India and revenue grew marginally to Rs 1,435 crore. Net profit improved by 5.3 per cent over a year, to Rs 302.3 crore.
Operating margin widened by 118 basis points to 21.9 per cent. Cost of materials went up by 1.7 per cent and was partially offset by a 1.4 per cent cut in the advertisements and publicity budget for the quarter.
Contribution of the domestic FMCG business grew to 71 per cent of consolidated revenue during the quarter, up from 66 per cent last year. The share of international business shrank by five percentage points, to 25 per cent.
“The business faced a tough economic environment, characterised by extreme volatility in currency, particularly in Egypt and North African markets, as well as crude oil-led economic turmoil in Saudi Arabia. In constant currency terms, consolidated net sales remained flat. Demand growth, still reeling under the impact of demonetisation, remained slow at the beginning of the quarter. It improved as the quarter progressed, led by a significant improvement in rural demand,” said Sunil Duggal, chief executive officer of Dabur India.
After a six per cent dip in net sales during the December quarter, due to currency demonetisation, domestic sales improved this quarter. Sales by volume grew 2.4 per cent in India and revenue grew marginally to Rs 1,435 crore. Net profit improved by 5.3 per cent over a year, to Rs 302.3 crore.
Operating margin widened by 118 basis points to 21.9 per cent. Cost of materials went up by 1.7 per cent and was partially offset by a 1.4 per cent cut in the advertisements and publicity budget for the quarter.
Contribution of the domestic FMCG business grew to 71 per cent of consolidated revenue during the quarter, up from 66 per cent last year. The share of international business shrank by five percentage points, to 25 per cent.
“The business faced a tough economic environment, characterised by extreme volatility in currency, particularly in Egypt and North African markets, as well as crude oil-led economic turmoil in Saudi Arabia. In constant currency terms, consolidated net sales remained flat. Demand growth, still reeling under the impact of demonetisation, remained slow at the beginning of the quarter. It improved as the quarter progressed, led by a significant improvement in rural demand,” said Sunil Duggal, chief executive officer of Dabur India.