Dabur Q1 Net Profit Jumps 28% on Volume Growth, Higher Margin

Last Updated: Aug 08, 2022 - 06:43 pm 56.3k Views

Fast-moving consumer goods maker Dabur India Ltd reported a 28% jump in its consolidated net profit for the first quarter through June 2021 thanks to strong growth in business volumes and higher earnings margins.

Net profit for the April-June period rose toRs 438.3 crore from Rs 341.3 crore in the year-ago period, the maker of Dabur Chyawanprash, Real fruit juices and Vatika hair oil said.

The company’s revenue climbed 32% to Rs 2,611.5 crore from Rs 1,980 crore a year earlier, despite the mobility restrictions and disruptions due to localized lockdowns in the wake of the Covid-19 pandemic.

Dabur’s India FMCG business grew 35.4% during the quarter, with an underlying volume growth of34.4%.


Other key details:

1. Dabur’s EBITDA rose 32.5% to Rs 552 crore from Rs 416.5 crore. EBITDA margin widened to 21.1% from 21%.

2. April-June revenue from the food business soared 85% to Rs 402.5 crore.

3. Quarterly sales from the main consumer care business jumped 25% to Rs 2,168 crore.

4. Healthcare business reported 30% growth, with the ayurvedic OTC business growing 52%.

5. Overseas sales soared 34% in constant currency terms, with the MENA business growing 49% and SAARC business rising 41%.


Management Commentary: 

Dabur CEO Mohit Malhotra said the company learnt from last year to streamline its supply chain and ensured minimal disruption while firmly focusing on delivering volume-led growth.

Malhotra said the company has expanded its rural coverage by 16%, from 60,000 villages at the end of 2020-21 to 69,000 villages as of June 30, 2021, and that it plans to expand it to 80,000 villages over the next two years.

The company also said that its e-commerce vertical reported more than 100% growth and now contributes 8.2% to its India FMCG business.

It also said that discretionary spending in the country is reviving despite the pandemic. This helped its home and personal care business grow by 26% during the quarter while the skin care and salon business reported 66% growth.



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