Dabur's H1 ad spend up 7%

Dabur India has posted a consolidated net profit of Rs 425 crore for the second quarter of 2024-25. The company’s revenue stood at Rs 3029 crore, which is 9.5% lower than the first quarter of the current fiscal.

Their advertisement and publicity expenses turned out to be Rs 225.63 crore for Q2 2024-25, which was 4% less than Q1 FY25 when it was Rs 235.89 crore. Th ad expenses was Rs 216.53 crore during July-September 2023-24. 

In H1 of this fiscal, the advertisement and publicity expenses were Rs 461.52 crore, which is 9.6% higher than last fiscal’s H1. 

The company said in a statement, “Despite a challenging demand environment marked by high food inflation and a resultant squeeze in urban demand, Dabur continued to drive consumer engagement across its key brands to end the second quarter of 2024-25.”

Dabur’s CEO Mohit Mathotra said, “Over the past couple of years, we have witnessed a marked shift in consumer buying patterns in favour of emerging channels like quick commerce, driven by the convenience this channeI offers. This has resulted in the emerging channels growing at high teens, putting the General Trade under stress. To address the changing dynamics in the marketplace and support our distributor partners in tiding over the challenges, we took a proactive decision to rationalise inventory in the GeneraI Trade, which resulted in a temporary dip in states during the quarter. However, the move has resulted in improving the long-term health and hygiene of our business, paving the way for healthy growth going forward."

Additionally, Dabur lndia Limited announced that it has entered into an agreement to merge Sesa Care Private Limited (sesa), subject to regulatory approvals. As part of the transaction, Dabur will acquire 51% of the total paid up cumulative redeemable preference shares (CRPS) of sesa from its existing shareholder, True North (a private equity fund), for Rs 12.59 crore at face value.

The enterprise value is estimated to be in the range of Rs 315-325 crore, including debt of Rs 289 crore, which will be backed by the corporate Guarantee of Dabur.

"Dabur is a market leader in the hair oil's category. The proposed merger of sesa witt brings to Dabur a premium brand with strong credentials around Ayurveda that will complement our.existing portfolio and strengthen our presence in the hair care category. we look forward to the exciting opportunities this day brings," Dabur India Chairman Mohit Burman said.