Demand trends remained sluggish during the quarter ended March 31, 2024 (04 FY24), homegrown FMCG major Dabur said in an exchange filing today. In the quarter update, the company said rural growth picked up fuelled by price rollbacks in staples which led to the gap between rural and urban narrowing. With a positive outlook for the rabi crop harvest and monsoon forecast to be normal the company expects consumption to pick up in the coming months.
Dabur’s consolidated revenue is expected to register mid-single digit growth during Q4 FY24. The inorganic revenue growth which was to the extent of around 2.3 percent till YTD ‘Dec 2023 on account of Badshah acquisition is now factored in the base.
In India business, HPC segment is expected to grow in high-single digits. Healthcare and F&B segments are expected to register low single digit growth. F&B had a high base last year and the healthcare portfolio was impacted due to the delayed winter. Badshah Masala continued to perform well and is expected to post strong volume led growth in the high teens, the company said. It added, “We continued to gain market share across our categories driven by strong execution in the market.”
International Business is expected to register double-digit growth in constant currency terms, led by good momentum in the MENA region, Egypt and Turkey. However due to the impact of currency depreciation in Turkey and Egypt the translated revenue in INR terms will show growth in mid single digits.
Gross margins are likely to continue to witness expansion on account of deflation in input cost and cost-saving initiatives. Dabur said, “In line with the strategy to invest behind our brands we will see higher A&P spends. The operating profit is expected to grow slightly ahead of the revenue and post an improvement in Y-o-Y operating margins.”
The company added in the filing, “While the past year was challenging in terms of consumer demand, we expect improvement in consumption going forward as macro-economic indicators continue to be robust. Our focus on investing behind our brands, distribution expansion, manufacturing cap.”
Dabur India’s FMCG portfolio today includes nine distinct Power Brands: Dabur Chyawanprash, Dabur Honey, Dabur Honitus, Dabur PudinHara and Dabur Lal.Tail in the Healthcare space; DaburAmla, DaburRed Paste andVatika in the Personal Care category; and Real in the Food’s space. During FY 2022-23, Dabur recorded consolidated revenue, from operations of Rs 11,530 crore and consolidated profit and consolidated profit after tax of Rs 1,707 crore.