The Hindu Business Line : Dabur India posts higher Q1 net profit of Rs 20.5 cr; sales up 15.6 pc

DABUR India Ltd (DIL) on Monday declared 84 per cent surge in net profit to Rs 20.5 crore during the first quarter ending June 30 on 15.6 per cent higher sales at Rs 286 crore.

The board of directors met here today to consider the unaudited financial result of the company for the first quarter, DIL said in a statement here.

Meanwhile, Dabur India (consolidated), which includes the financial figures of Dabur India, Dabur Foods, Dabur International Ltd, Dabur Nepal Pvt Ltd other subsidiaries and exports from India, posted an increase of 98.8 per cent in net profit to Rs 22.1 crore from Rs 11.1 crore during the first quarter of the current fiscal.

Sales turnover (consolidated) during the quarter under review has increased by 22 per cent from Rs 282.5 crore to Rs 344.4 crore.

"The company gained significantly from its innovative marketing initiatives, aggressive sales strategies and improved business processes. Health care, oral care and baby care segments were the key drivers of growth during the first quarter followed by the products in the Hair care and Digestives category," said the DIL CEO, Mr Sunil Duggal.

The hair care products, which accounted for nearly 39 per cent of sales of the company during the first quarter, grew approximately by 8.6 per cent while the health supplements category, which accounted for over 11 per cent in the turnover, grew by 25 per cent.

During the same period, oral care, which includes the newly launched Red Tooth Paste, posted a healthy growth of 21 per cent while the baby care category grew by over 13 per cent.

The Ayurvedic Specialties Division, which has now been restructured as Consumer Healthcare Division (CHD) comprising OTC products and ayurvedic medicines, registered a growth of 10.4 per cent.

"The restructuring of the CHD Division is complete and we are now poised to generate significant scale and momentum to our OTC portfolio," Mr Duggal said.

Dabur International Ltd, the Dubai-based subsidiary and the hub for all its international operations, grew by 40 per cent in turnover from Rs 16.3 crore to Rs 23 crore during the period. The company has also incorporated a local subsidiary in Nigeria — African Consumer Care — for tapping the Nigerian and West African markets.

Dabur today has manufacturing operations in India, Bangladesh, West Asia, Egypt, and Nepal and has plans to set up manufacturing facilities in Pakistan and Nigeria.

Meanwhile Dabur Foods Ltd, a subsidiary of Dabur India manufacturing Real fruit juices, Hommade and Lemoneez, posted an increase of 68.7 per cent in sales to Rs 28.9 crore during the three-month period.

Real, the flagship brand for Dabur Foods, posted a growth of 66.5 per cent and the company launched its first natural cooling drinks — Coolers — in three flavours during the quarter under review.