Ayurveda major Dabur India Ltd announced a 11 percent growth in consolidated revenue for the first quarter of 2023-2024 to cross the Rs 3,000 crore mark for the first time in the first quarter.
This is driven by strong double-digit growth in both HPC and HC businesses. The Q1 revenue growth stands at 13.3 percent on a constant currency basis.
The financial year 2023-2024 began on a strong note, reflecting the successful execution of our business and go-to-market strategies to deliver a robust performance during the first quarter of the year.
Dabur reported a 11 percent growth in consolidated revenue at Rs 3,130 crore, up from Rs 2,822 crore a year ago, with an underlying volume growth of three percent in the India FMCG business.
Dabur’s operating profit saw a growth of 11.2 percent. Dabur ended the first quarter of 2023-24 with a 5.3 percent growth in consolidated net profit at Rs 464 crore, up from Rs 440.3 crore a year earlier. Net profit excluding amortisation related to Badshah acquisition reported an eight percent growth.
“We remain committed to our strategy of superior go-to-market execution by enhancing our distribution footprint while focusing on driving growth for our Power Brands and building an agile organisation culture in our pursuit of sustainable, balanced growth and value creation. We have initiated several measures to pursue greater efficiency and the gains were ploughed back in the form of higher investments behind our brands to drive demand. Our media spends grew by 30 percent in the consolidated business and by 28 percent in the India business,” said Mohit Malhotra, chief executive officer, Dabur India.
“We continue to see strong consumer engagement with our brands, helping them grow significantly ahead of the market and report market share gains across 90 percent of the portfolio. With the inflation softening, we have seen our rural growths bounce back to high single digits after three quarters. While rural growth continues to lag urban demand, the gap has reduced significantly. We continue to strengthen our long-term competitiveness through investments in developing consumer-centric innovations and technology, as we deliver on our purpose of health and well-being for every household,” Malhotra added.
In 2022-23, Dabur emerged as the first Indian FMCG company to become plastic waste positive, having collected, processed and recycled 35,000 MT of post-consumer plastic waste from all over India. Today, Dabur collects, processes and recycles more plastic waste than it sells in its product packaging in a year.
International business growth
Dabur’s international business reported a 20.6 percent growth in constant currency terms. The Turkey business reported a 51.2 percent growth, while the Egypt business grew by 45.7 percent, Sub-Saharan Africa by 13 percent and MENA by 10.2 percent.
Category growths
Riding on growing demand for our flagship cough and cold brand Honitus, Dabur’s OTC business reported a 24.3 percent growth during the quarter. The digestive business was up 14.3 percent while the home care business posted a 14.5 percent jump.
The oral care portfolio grew by 12.7 percent while the hair care portfolio posted a near 10 percent growth during the quarter. While the foods business grew by 35 percent, the beverages portfolio was impacted by the unseasonal rains.
Dabur also reported market share gains across 90 percent of its portfolio. In the hair oils category, Dabur gained 200 bps to end the quarter at its highest-ever share of 17.4 percent.
Dabur Red Paste gained 50 bps market share, taking the overall toothpaste market share to 16.9 percent. Odomos gained 340 bps, taking our share of the mosquito repellent category to 58.9 percent. Dabur also reported a 320-bps gain in Chyawanprash market share.