Home-grown FMCG major Dabur India on Thursday reported an 8.27 per cent rise in consolidated net profit at Rs 494.35 crore in the first quarter ended June 2024 amid a challenging demand environment marked by high food inflation and unemployment rate. The company had posted a consolidated net profit of Rs 456.61 crore in the same quarter last fiscal, Dabur India said in a regulatory filing.
Consolidated revenue from operations in the quarter under review was at Rs 3,349.11 crore as against Rs 3,130.47 crore in the year-ago period, it added.
Total expenses in the quarter were higher at Rs 2,835.86 crore as compared to Rs 2,646.69 crore in the corresponding period a year ago.
“Despite a challenging demand environment marked by high food inflation and unemployment rate, Dabur delivered a strong 8.3 per cent growth in operating profit, demonstrating the resilience of its business model,” the company said.
The India FMCG business posted a volume growth of 5.2 per cent for the quarter, it added.
“It’s been a good start to the new financial year as we drove sequential recovery in volume growth, driven by rural markets to report industry-leading performance across our key verticals. This allowed us to plough higher investments behind our brands to drive market expansion and sustain our growth momentum,” Dabur India CEO Mohit Malhotra said.
The company said its media spends grew by 15.4 per cent during the quarter in the consolidated business thereby allowing it to drive demand during the quarter with key verticals like health supplements, digestives, shampoos, toothpaste, home care and beverages.
“Through disciplined execution of our go-to-market strategy, we continued to capitalise on our brand strength and deepen engagement with our consumers. Our focussed approach towards expanding our rural footprint to over 1.22 lakh villages reaped rich dividend as rural demand outpaced urban demand by 350 bps during the quarter,” Malhotra said.
Dabur said its international business reported an 18.4 per cent growth in constant currency terms with Egypt reporting a near 64 per cent growth and Nigeria 181 per cent, while Sub-Saharan Africa grew by 21.4 per cent and MENA (Middle East and North Africa) by 13 per cent.
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