Dabur shares slip 4% as Q4 profit drops amid subdued demand; details here

Dabur's stock fell as much as 4.36 per cent during the day to ₹461.1 per share, the biggest intraday loss since April 7 this year

Shares of Dabur India plunged over 4 per cent in Thursday's intraday session after it reported an 8.3 per cent decline in its net profit for the fourth quarter (Q4) of the financial year 2024-25 (FY25). 

 

The fast-moving consumer goods (FMCG) major's stock fell as much as 4.36 per cent during the day to ₹461.1 per share, the biggest intraday loss since April 7 this year. The stock pared losses to trade 2.52 per cent lower at ₹469.9 apiece, compared to a 0.12 per cent decline in Nifty 50 as of 9:40 AM. 

 

Shares of the company extended their fall to their second day and have fallen by over 4 per cent from the recent peak of ₹495, which it hit late last month. The stock has fallen 6.2 per cent this year, compared to a 3.2 per cent rise in the benchmark Nifty 50. Dabur has a total market capitalisation of ₹84,326.90 crore. 

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Dabur Q4FY25 Results breakdown

 

Dabur reported its consolidated net profit of ₹320.13 crore for Q4FY25, marking an 8.31 per cent drop on a Year-on-Year (Y-o-Y) basis.

 

The company posted revenue from operations at ₹2,830.14 crore, marginally higher than ₹2,814.64 crore recorded during the fourth quarter of the previous financial year. Revenue for the full year stood at ₹12,563 crore, up from ₹12,404 crore a year earlier.

 

The board recommended a final dividend of 525 per cent, taking the total dividend for 2024-25 to 800 per cent.  

 

Dabur management commentary 

 

In a statement, Dabur said that FMCG demand trends remained subdued during the fourth quarter and full year 2024-25. Despite a challenging operating environment, the company said it delivered 2.1 per cent constant currency revenue growth at ₹2,830 crore. 

 

"Despite facing some pressures in the Indian business, our international business enabled us to successfully navigate the complex external environment. Our International Business achieved 19 per cent constant currency growth in the fourth quarter and 17 per cent during the full year. We expect consumer demand in India to recover progressively in the coming quarters, both in urban and rural markets," Dabur India CEO Mohit Malhotra said. 

 

Dabur to drop weak products

 

The company has taken a call to discontinue certain low-performing products as part of its plan to register near-double-digit growth in FY26.

 

“Our ambition is to achieve a sustainable double-digit compound annual growth rate (CAGR) by FY28 in both top line and bottom line. This renewed strategy builds on our core strengths while pivoting towards future-ready levers of value creation,” Malhotra told investors on a post-earnings call on Wednesday.