The FMCG firm's consolidated net profit slipped 5.88% to Rs 341.78 crore on 12.90% drop in revenue from operations to Rs 1,979.98 crore in Q1 June 2020 over Q1 June 2019.
Consolidated profit before tax (PBT) fell 4.38% to Rs 423.82 crore in Q1 June 2020 as against Rs 443.24 crore in Q1 June 2019. Current tax expense for the quarter skid 8.54% at Rs 79.31 crore as against Rs 86.72 crore in Q1 June 2019. The Q1 result was declared during market hours today, 30 July 2020.
The slowdown in economic activity and supply chain disruptions in view of the unprecedented lockdown announced by the government to arrest the spread of COVID-19 pandemic continued to impact the business in Q1 June 2020. As the restrictions were subsequently eased, Dabur India quickly scaled up operations to reach near normal levels in May and June 2020.
Speaking on the Q1 earnings, Mohit Malhotra, the chief executive officer (CEO) of Dabur India, said: "We were growing at a steady pace until COVID pandemic brought business to a standstill. Amidst this challenging business environment, the company revamped its portfolio to meet the growing consumer need for quality preventive healthcare, personal hygiene and household hygiene products, while alongside enhancing production of our existing Ayurvedic Immunity boosters like Dabur Chyawanprash and Dabur Honey."
"Despite a challenging April 2020, the quarter saw a nearly 7-fold growth in demand for Dabur Chyawanprash with over 60% surge in demand for Dabur Honey. Dabur has significantly ramped up capacity with production now at near-normal levels and the business poised to deliver growth for the rest of the year.".
"We will continue to invest behind our Power Brands, many of which are in the Healthcare space, to drive business growth. Going forward, we will also capitalize on the emerging tailwinds and our distribution might to further strengthen our position as a frontrunner in the Ayurvedic Healthcare and Hygiene products markets," Mr Malhotra added.
Dabur continued to gain market share across all key categories like chyawanprash, toothpaste and packaged juices & nectars, during the quarter. Dabur Chyawanprash reported a growth of over 694% during the quarter, while Dabur Honitus grew by over 80% while Dabur Honey ended Q1 2020-21 with a growth of over 60%.
Dabur Chyawanprash and Dabur Honey, Dabur's Health Supplements Business reported a 53% growth during Q1 June 2020. The OTC healthcare business ended the quarter with a 34% growth while the Ayurvedic Ethicals business was up 11%. The toothpaste business, on the back of continued demand for our flagship Dabur Red Paste, ended the quarter with a nearly 3% growth. The other categories have also witnessed improvement in sales sequentially through the quarter.
Shares of Dabur India rose 0.91% to Rs 494.35. Dabur India operates in various product categories, such as hair care, oral care, healthcare, skin care, home care and foods. Its business units include consumer care business, foods business and international business.
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