Dabur India reports 7% increase in revenue in Q3 FY20
Consolidated net profit grew 8.7% to Rs 397.7 crore, up from Rs 366.1 crore in the corresponding period last year
Dabur India Limited reported a 7% jump in revenue and a 10.7% growth in operating margin during the third quarter of 2019-20. Dabur’s consolidated revenue for Q3 of 2019-20 stood at Rs 2,353 crore, up from Rs 2,199 crore a year earlier. Consolidated net profit grew 8.7% to end the third quarter at Rs 397.7 crore, up from Rs 366.1 crore a year ago.
The net profit was impacted by one-time impairment in the value of investments to the tune of Rs 20 crore. Excluding this impairment, the net profit for Q3 of 2019-20 marked a 12.8% growth year-on-year. Dabur's domestic FMCG business reported an underlying volume growth of 5.6% during the quarter.
Speaking on the development, Dabur India Ltd Chief Executive Officer Mohit Malhotra said, “While the global macroeconomic environment continues to be challenging and competitive intensity remains high, we have successfully tapped the growth opportunities to deliver a strong performance during the quarter. Our focus on strengthening our core Healthcare portfolio with heavy investments behind our Power Brands, coupled with investment in expanding our rural footprint and enhancing our go-to-market approach, continues to serve us well. This has enabled us to grow ahead of categories and gain market share across our portfolio".
“The near-term outlook for demand growth remains challenging with most key categories reporting a steady decline in Value and Volume growth. We will continue to invest in building a sustainable growth platform for the future with healthy investments in strengthening our brands and enhancing our competitiveness in the marketplace to tide over the consumption headwinds,” Malhotra added.
Dabur’s Health Supplements business grew by 12.2% during the quarter, led by strong demand for its flagship Dabur Chyawanprash. Riding on this, Dabur Chyawanprash reported an over 300 bps gain in market share to 64%. The Digestives business, riding on strong demand for Hajmola and PudinHara Fizz, ended the quarter with a nearly 16% growth. The OTC category also reported a 5.5% growth during the quarter. On the back of continued demand for the flagship Dabur Red Paste, Dabur’s Oral Care business grew by 8.4%. Dabur’s toothpowder brand Lal Dant Manjan also reported a 10.4% growth during the quarter. The Shampoo business was up 5%.
Dabur's International business grew by 11.7% during the third quarter of 2019-20, led by strong local currency growth in key markets like the Middle East and North Africa (MENA), Egypt, Nigeria, Turkey and Nepal. The Turkey business grew by over 32%, while Nepal reported a nearly 21% growth during the quarter. The MENA business posted a growth of over 10%, while Egypt grew by 17% and Nigeria by over 17%.
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