Dabur releases Q3 financial reports

Dabur announced its financial results for the quarter ended December 31, 2023. Q3 operating profit surges 9.5% and revenue up by 7%. India FMCG Volume Growth stands at 6%.

08 Feb 2024 | By Disha Chakraborty

“Dabur’s rural distribution has, in fact, been the highest in the industry”

Dabur ended the third quarter of 2023-24 with a 7% growth in revenue from operations at Rs 3,2550-crore, driven by steady performance of both the home and personal care and food and beverages businesses. Revenue stood at Rs 3,043.2 Crore in Q3 of 2022-23. The Q3 revenue growth stands at 10% on a constant currency basis.

Despite the delay in onset of winters slightly impacting the healthcare and winter portfolio, Dabur’s business ended the third quarter with a volume growth of 6%. Operating profit for the quarter marked a 9.5% jump. Consolidated net profit for the quarter marked an 8% jump to Rs 514-crore, up from Rs 475-crore in 2022. Advertising spends for the quarter marked a 36% growth in the Consolidated business and 30% in the Standalone business.

Mohit Malhotra, CEO, Dabur said, “We remain intensely focused on our strategies of managing an agile and accountable organisation structure with a focus on superior product delivery and constructive disruption to drive sustainable, profitable growth across our portfolio. Moderating inflation coupled with buoyant consumer sentiments and our focussed investment in distribution footprint expansion in rural India helped demand from the hinterland bounce back for Dabur. Rural demand for Dabur grew 200 bps ahead of urban. We have also stepped-up investment behind our brands to drive competitive volume growth, reflected in our higher advertising spends during the quarter.” 

“We have been investing in growing our rural footprint, which has expanded by 17,000 villages in the current fiscal from 1,00,000 to 1,17,000. We are working towards ending this year with a rural coverage of 1.2 lakh villages. Dabur’s rural distribution has, in fact, been the highest in the industry, giving us a distinct advantage and helping drive our rural growth,” Mr. Malhotra added.

The digestives business ended the quarter with over 15% growth while the ayurvedic ethicals business grew by nearly 7% in Q3. Dabur’s shampoo and post-wash category reported an over 11% growth. The toothpaste business ended the quarter with an industry leading over 8% jump, backed by toothpaste volume growth of 5%. The home care business reported a 7% growth while the beverages business returned to the growth trajectory and ended the quarter with a 7% growth. The foods business, including Badshah, ended the quarter with a 22% growth.

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