Dabur Q1 net profit up 19.6% on price hikes

Our Bureau Updated - November 12, 2017 at 10:10 PM.

Homegrown FMCG player Dabur India announced a 19.6 per cent rise in net profits, aided by strong demand and price hikes.

The company reported a net profit of Rs 127.74 crore for the June quarter, up from Rs 106.79 crore in same period last year.

Dabur posted a 31.6 per cent rise in consolidated sales at Rs 1,216.24 crore as against Rs 924.38 crore in the same period last year.

This includes income from its recent acquisitions Hobi Kozmetik of Turkey and Namasté Laboratories of the US.

Measures

Dabur India CEO, Mr Sunil Duggal, said strong demand, calibrated price hikes and stringent cost-saving initiatives had helped it mitigate the impact of rising input costs and helped it record a 27.8 per cent growth in EBITDA.

The company reported double-digit growth across its portfolio of hair oil, toothpaste, homecare business, foods business and skin care. Of these, the foods business posted a 31 .5 per cent growth while home care business grew by 24.9 per cent.

International business

Dabur said its international business recorded a strong 98.9 per cent surge during the quarter, led by robust performance in Nigeria, Egypt & GCC and income from the newly acquired overseas companies.

An FMCG analyst from a broking firm said that the contraction in gross margins was a bit surprising. Especially given the price hikes the company had effected in its products. The company had hiked product prices by 4-5 per cent.

Published on July 27, 2011 16:31