Tuesday, June 18, 2024

Dabur Q4 consolidated net profit surges 16.2% to Rs 350 crore

Must Read

Dabur India Ltd has achieved a significant milestone in its financial performance for the year 2023-24, with consolidated revenue surpassing the Rs 12,000 crore mark to reach Rs 12,404 crore, marking a notable 7.6% increase compared to the previous year. Moreover, the full-year consolidated revenue growth stands at an impressive 10.1% on a constant currency basis. The company’s consolidated net profit also saw a robust growth of 7.9% to Rs 1,843 crore for the fiscal year, up from Rs 1,707 crore in the preceding year.

The strong performance can be attributed to Dabur India’s strong execution of brand strategy, increased premiumization efforts, and expansion of distribution footprint, coupled with the benefits derived from stringent cost reduction measures implemented throughout the fourth quarter and the entire fiscal year of 2023-24. 

The company’s operating profit exhibited an improvement of 13.9% during the quarter, with quarterly net profit surging by 16.2% to Rs 350 crore, compared to Rs 301 crore recorded a year ago. Q4 Consolidated Net Profit, on a like-to-like basis, witnessed a substantial upsurge of 22.7% to Rs 370 crore.

During the quarter, consolidated revenue experienced a robust 7.3% growth on a constant currency basis, reaching Rs 2,815 crore, representing a 5.1% increase on an INR basis compared to Rs 2,678 crore reported a year earlier.

Mohit MalhotraCEO, Dabur India Limited, expressed satisfaction with the company’s performance, emphasizing the efficacy of Dabur’s brands.  He says, ‘‘We have been investing heavily in our brands, which have increased by 33%, to drive demand and also sustain the growth momentum. This has helped us deliver steady sales and profit growth in the fourth quarter despite multiple headwinds. We continued to execute our strategic playbook by driving operational excellence, delivering innovative and premium products, and expanding our retail footprint to build the foundation for long-term profitable, sustainable growth.”

Premium products account for 18% of Dabur’s portfolio, contributing to the overall growth trajectory. The FMCG business witnessed a volume growth of 5.5% for the full year, with key brands posting category-leading growth and gaining market share across 95% of the portfolio. Notably, Odomos, Chyawanprash, Hair Oil, and Honitus reported significant market share gains, reflecting the strength of Dabur’s brands.

Dabur’s investment in expanding its rural footprint has yielded substantial dividends, with rural demand outpacing urban demand. The company’s rural distribution network, which expanded by 22,000 villages to 122,000 villages during the fiscal year 23-24, has played a pivotal role in driving rural growth, resulting in a 400 bps increase compared to urban growth.

In terms of category growth, Dabur’s Oral Care penetration stands at  52%, with the toothpaste business reporting a notable 23% jump. The Digestives, Home Care, Shampoo, and Foods segments also demonstrated strong growth during the quarter.

Dabur also delivered a solid performance in the overseas markets, with the International Business reporting a Constant Currency growth of 12% in the fourth quarter and 16.4% for the full year 2023-24. During the quarter, the Egypt business grew by 63%, while Turkey business was up 39% and the Middle East & North Africa (MENA) markets posted a growth of 6.3%. The Sub-Saharan Africa business rose 23.8%.

The Board of Directors has recommended a Final Dividend of 275%, totaling 550% for the fiscal year 2023-24, in line with the company’s payout policy. This reflects Dabur’s commitment to delivering value to its shareholders while maintaining a strong financial performance.

Latest News

New Report Reveals Emerging Investment Opportunities in the Plant-Based Ingredients Sector

Asit C. Mehta Investment Intermediaries (ACMIIL), a trusted equity research house , has published a comprehensive report titled “From...