Dabur India Stock Price Ends 4% Higher After Profit Rises 16.5%


by Sandip Das on 2 May 2024,  3 min read


Dabur India announced its financial results for the fourth quarter ending March 31, showcasing robust growth in both revenue and net profit. The company reported a consolidated net profit of Rs 341.22 crore, marking a notable increase of 16.5 percent compared to Rs 292.76 crore in the corresponding quarter of the previous fiscal year. This growth trajectory highlights Dabur’s resilience and adaptability in navigating through challenging market conditions.

In Q4FY24, Dabur’s total revenue reached Rs 2,814.64 crore, reflecting a solid uptick of 5.11 percent from Rs 2,677.80 crore in the same quarter last year. This performance surpassed market expectations, with the company outperforming the mean estimates of seven brokerage firms, which projected a revenue of Rs 2,735 crore. Additionally, the net profit surpassed expectations, standing at Rs 341.22 crore against an estimated Rs 335 crore for the January to March quarter.

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The Board of Directors has recommended a final dividend of Rs. 2.75 per equity share for the financial year 2023-2024, underscoring Dabur’s commitment to enhancing shareholder value.

Key to Dabur’s success in the quarter was its strategic focus on brand investment, which saw a significant increase of 33 percent. This investment was instrumental in driving demand and sustaining growth momentum amidst prevailing headwinds. Mohit Malhotra, CEO of Dabur India, emphasised the company’s dedication to executing its strategic playbook, which prioritises operational excellence, innovation, and expansion to ensure long-term profitable growth.

Dabur’s portfolio includes a diverse range of premium products, which currently contribute 18 percent to its overall business. The FMCG segment in India witnessed a commendable volume growth of 5.5 percent for the fiscal year, with several key brands experiencing substantial growth and market share expansion across various categories. Notable performers include Odomos, which saw a remarkable market share increase of 677bps in the mosquito repellent segment, and Chyawanprash, reporting a gain of 135bps.

The company’s stronghold in the hair oil segment strengthened further, with a market share increase of 115bps. Other brands such as Honitus and Dabur’s Juices & Nectars category also recorded significant market share gains of 114bps and 53bps, respectively.

Dabur’s penetration in the oral care segment reached 52 percent, reflecting its widespread acceptance among Indian households. The Oral Care business witnessed a remarkable surge of 22 percent in the latest quarter, primarily driven by a robust 23 percent increase in toothpaste sales.

The Digestives business, led by the iconic brand Hajmola, posted a commendable growth of 16 percent, underlining the brand’s enduring popularity among consumers.

Similarly, the Home Care segment, buoyed by strong demand for mosquito repellents, registered a robust growth of 7.5 percent. Shampoo sales also witnessed a noteworthy increase of over 6 percent during the quarter. Dabur’s Food business, which includes brands like Badshah, expanded by an impressive 20.6 percent.

In addition to its robust performance in the domestic market, Dabur’s international business demonstrated significant growth, with a remarkable 112 percent increase in Constant Currency terms in the fourth quarter. For the full fiscal year 2023-24, the international business recorded a commendable growth of 16.4 percent, underscoring Dabur’s growing footprint in global markets.

Overall, Dabur India’s fourth-quarter results reflect its resilience, strategic foresight, and unwavering commitment to delivering sustained value to its stakeholders. The company’s focus on brand investment, product innovation, and market expansion positions it well for continued growth and success in the dynamic FMCG landscape.

Source: moneycontrol

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Disclaimer: The information provided in this blog post is for informational purposes only and should not be construed as investment or trading advice. The author is not a financial advisor and does not have any professional qualifications in this area. The author does not guarantee the accuracy or completeness of the information provided. Any action you take based on the information in this blog post is done at your own risk. Please consult with a financial advisor before making any investment.

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