Dabur India Q1 net profit rises 28% to Rs 437 crore, revenue up 32%

Dabur India on Tuesday reported a 28 per cent year-on-year increase in its consolidated net profit for April-June quarter at Rs 437 crore on the back of higher volumes.
 
The FMCG company's revenue from operations rose 32 per cent to Rs 2,612 crore despite the second wave of COVID-19 pandemic. Total expenses rose 31 per cent to Rs 2,128 crore.
 
"Continued investments behind the Power Brands and increasing distribution footprint, coupled with a structured and balanced approach to driving cost management, helped Dabur India Ltd overcome the challenging context of COVID second wave...," the company said in a post-earnings release.
 
Dabur India's FMCG business grew 35.4 per cent, with an underlying volume growth of 34.4 per cent in the first quarter of 2021-22. The company said its e-commerce business reported over 100 per cent growth during the quarter under review and now contributes to 8.2 per cent of the India FMCG business.
 
"Our relentless focus on innovation, a widened product portfolio and a revival in in-home consumption in line with the growing consumer need for health helped Dabur's Food and Beverages business end Q1 2021-22 with an 80.4 per cent surge," the release said.
 
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The company said its healthcare business reported a 30 per cent growth in the quarter, while ayurvedic OTC business grew by over 52 per cent. Ayurvedic ethicals business reported a growth of nearly 51 per cent, while health supplements category ended the quarter with a 24.5 per cent growth.
 
The revival in discretionary spending continued during the quarter, which helped Dabur India's home and personal care segment grow by over 26 per cent. Meanwhile, the international business reported 34 per cent growth in constant currency terms.
 
"While the operating environment was challenging and the competitive intensity high, we have successfully tapped the growth opportunities to deliver a strong performance during the quarter. We continue to invest ahead of the curve in expanding our rural footprint," Dabur India CEO Mohit Malhotra said.
 
Dabur India expanded its rural coverage by 16 per cent to 69,000 villages in June quarter, and plans to further expand it by 33 per cent to 80,000 villages over the next 2 years, Malhotra added.
 
"Our operating margin reported a 32.5 per cent growth during the quarter, which marked a 10 bps gain despite high inflationary pressures," Malhotra said.
 
Shares of Dabur India were trading 2.65 per cent higher at Rs 615.10 on the BSE in the afternoon session on Tuesday.

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