Dabur reports 2% rise in net profit to ₹504 crore in Q3

Dabur’s consolidated revenue from operations rose 8% to ₹2,942 crore in the quarter under review as against ₹2,729 crore a year ago.

Homegrown FMCG major Dabur India Ltd on Wednesday reported a consolidated net profit of ₹504 crore, up 2%, in the quarter ending December 31, 2021. The company had posted a net profit of ₹493.5 crore in the year-ago period.

“The consolidated net profit for the 9 months recorded a 10% hike, while the India FMCG business noticed a 13% volume growth for the 9 months,” Dabur said in a statement.

The company’s consolidated revenue from operations increased 8% to ₹2,942 crore in the quarter against ₹2,729 crore in the previous year, while the total income for the quarter rose to ₹3,038.49 against ₹2,809.77 in the same quarter last fiscal.

Moreover, the company’s EBITDA, or earnings ahead of interest, taxes, depreciation, and amortisation jumps by 9.3% to ₹628 crore in Q3FY22 compared to₹574 crore in Q3FY21, while the EBIDTA margin also increases by 30 basis points to 21.3%.

The company declared that the overall operating environment was put as challenging throughout the quarter with unprecedented inflation of 13% and subdued consumer sentiments

“While our Healthcare portfolio was affected due to the high base of the previous year and a noticed a drop in demand for COVID-contextual products, this business reported a 2-year CAGR of 11.4%. Excluding the COVID-contextual range of Chyawanprash and Honey, our domestic FMCG Volume Growth stood at 8% for the third quarter,” he further stated.

Segment-wise growth: 

Dabur’s F&Bs business continued to be the outperformer in Q3, growing by 38%. “Dabur’s Foods business under the Homemade brand with a range of ready-to-eat and ready-to-cook products will become Rs 100-crore business by the end of the 2021-22 financial year,” Malhotra said.

Dabur’s toothpaste business also showed a strong industry-leading 8.1% growth while the ayurvedic ethicals business grew by 8.3% during the quarter.

Further, Dabur posted “handsome market share gains across the entire portfolio, led by a 514bps improvement in juices & nectars market share to the highest-ever share of 64.3%,” the company further added.

Dabur’s share in the Chyawanprash category was enhanced by 200bps to 63.6%. In the honey market, Dabur marked a market share gain of 180bps. It also noticed a 90bps market share gain in hair oils, with a share of pure coconut oil market increasing 120bps.