Dabur Q1 results: Net profit comes flat for June quarter; revenue up 10%

Homegrown FMCG major Dabur India Ltd on Thursday reported a flat consolidated net profit of Rs 440 crore year-on-year in the quarter ended 30 June, 2022. The company had posted a net profit of Rs 437 crore in the year-ago period.

Sequentially, the company reported a jump of 50 per cent from Rs 294 crore in the preceding quarter (Q4FY22).

The company's consolidated revenue from operations rose 10.3 per cent to Rs 2,822.43 crore in the quarter under preview as against Rs 2,611.54 crore a year ago, while the total income for the quarter increased to Rs 2,922.98 versus Rs 2,696.38 in the same quarter last fiscal. Consolidated revenue for the quarter reported a 2-year CAGR of 19.4 per cent.

"Dabur continued to demonstrate agility and resilience to deliver steady revenue growth despite consumer sentiments dwindling in the face of significant and increasing inflationary headwinds," the company said in a regulatory filing.

Dabur's International Business reported an 8 per cent jump in Constant Currency terms, led by strong growths in Turkey (88%), Sub-Saharan Africa (35%), Nepal (30%) and Egypt (17.5%). The International Business reported a 2-year CAGR of 12.9%, it added.

"Our brands continued to grow significantly ahead of the market, gaining market shares across all key categories. Despite the macro-economic headwinds, we remained focused on rolling our consumer- centric innovation that expanded our total addressable market, and report strong, sustainable, profitable growth. The demand environment remained stressed in view of the heavy inflation, which saw consumers switch to more affordable smaller packs of branded consumer goods," said Dabur India Ltd Chief Executive Officer Mohit Malhotra.

"Both rural and urban demand growth have been at par for Dabur. Rural demand for Dabur was driven by the ahead-of-the-curve investments in expanding our rural footprint to over 91,500 villages in Ql, up from 89,800 villages in March 2022. Urban growth, on the other hand, was driven by new-age channels like Modern Trade, which grew by 42% during the quarter," he added.

Shares of Dabur on Thursday closed 0.76 per cent to Rs 573.85 apiece on BSE.