FMCG major Dabur India on Wednesday reported a consolidated net profit of ₹514.2 crore for the December ended quarter (Q3FY24), an increase of 8% year-on-year (YoY).
Revenue from operations climbed 7% from a year ago to ₹3,255.06 crore during the quarter under review, “driven by steady performance of both the home & personal care and food & beverages business,” said an earnings statement from the company which owns brands such as Dabur Amla, Dabur Vatika, and juice brand Real.
Total expenses in the December quarter grew 7.82% ₹2,720.62 crore in Q3, while total income was at ₹3,382.43 crore, up 7.58%.
Despite a delayed onset of winters, which hurt the healthcare and winter portfolio, Dabur India reported a volume growth of 6% year-on-year, the company said in an exchange filing.
Advertising spends during the quarter surged 36% year-on-year.
“…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,” said Mohit Malhotra, chief executive Dabur India.
“We have been investing in growing our rural footprint, which has expanded by 17,000 villages in the current fiscal from 100,000 to 117,000. 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,” Malhotra said.
The company also gained board approval to set up a new manufacturing facility in southern India at an investment of ₹135 crore.
The new unit will manufacture a range of Dabur’s ayurvedic healthcare, personal care and home care products like Dabur Honey, Dabur Red Paste and Odonil air fresheners, the company said in a statement on Wednesday.
South Indian markets account for an estimated 18-20% of the company’s domestic business.
“…This is not only an opportunity to bring more jobs to the region, but also allows us to further expand our manufacturing capabilities and meet the growing need for Dabur products in South India,” Malhotra added.
This project marks Dabur’s first investment in south India and will add to its existing network of 13 domestic manufacturing locations.
Dabur India sells products under brands such as Dabur Chyawanprash, Dabur Honey, Dabur Honitus, Dabur PudinHara and Dabur Lal Tail in the healthcare space; Dabur Amla and Dabur Red Paste in the personal care category; and Réal in the foods and beverages category.
