Dabur shares decline 3% as Q3 business update reveals low single-digit revenue growth

Dabur India Limited saw its shares decline by 3% in early trade today following the release of its Q3 FY25 business update. The company, in its post-market announcement on January 3, 2025, reported low single-digit revenue growth and flat profit growth on a year-on-year (YoY) basis for the quarter ending December 31, 2024. The subdued performance has raised concerns among investors, especially in light of ongoing demand challenges in critical segments.

Key Highlights from Dabur’s Q3 FY25 Business Update:

• Revenue Growth: Dabur expects consolidated revenue growth to remain in the low single digits, primarily due to muted demand in the healthcare and beverage segments.
• Profitability: Net profit for the quarter is projected to remain flat YoY, reflecting ongoing challenges in driving earnings growth.
• Segment-Wise Performance:
  • Healthcare Segment: Performance remained flat, impacted by the delayed onset of winter.
  • Beverages: The segment showed muted growth during the quarter.
  • Home and Personal Care (HPC): Anticipated to deliver mid to high single-digit growth.
  • Culinary Business: Achieved strong double-digit growth, supported by brands like ‘Hommade’ and ‘Badshah.’
• Rural and Urban Trends: Rural markets continued to grow at a faster pace than urban markets, showcasing resilience in demand. However, general trade remained under pressure, with alternate channels like modern trade, e-commerce, and quick commerce delivering strong growth.
• Inflationary Pressures: The company mitigated inflationary challenges in certain segments through price increases and cost-efficiency initiatives.
• International Business: Dabur’s international operations reported double-digit growth in constant currency terms, led by strong performances in the Middle East and North Africa (MENA), Egypt, Bangladesh, and the United States

As of 9:27 am the shares were trading 2.58% lower at ₹511.35 on NSE.