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Dabur India on Friday said that its consolidated revenue is likely to garner mid to high single-digit growth during the second quarter of FY24. It added that operating profit is expected to grow in line with revenue and is expected to remain steady compared to the same quarter last year. This comes on the back of “gradual recovery” with “slightly deficient monsoon”
“While FMCG consumption is showing year-on-year improvement, however, the recovery has been gradual. This quarter (Q2) witnessed a mild summer and slightly deficient monsoon. The festive season is later than normal this year due to which offtake related to festivals is delayed and will carry forward to next quarter,” the FMCG major said in a BSE filing.
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Stating that consolidated revenue is expected to see mid to high single-digit growth in the quarter under review, it added that healthcare and home and personal care segments are expected to grow in high single-digit. “On account of mild summer and change in the festive season, we anticipate food and beverage business to remain slightly below last year’s revenue,” it added. Badshah Masala is expected to garner growth in “high teens”, it added.
“International business is expected to post high double-digit growth in constant currency led by the Middle East, Egypt and Turkey.” it stated.
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Moderation in inflation and cost-saving measures will help the company’s consolidated business to witness higher gross margin expansion compared to Q1 FY 24, it noted. The company said it will increase advertising and promotion spending. “Consequently, operating profit is expected to grow in line with revenue and remain steady compared to the same quarter last year,” Dabur India added
The homegrown FMCG major also expects recovery in consumption in both urban and rural markets. This it said will be due to improvement in macro indicators, increase in government expenditure and positive consumer sentiment.
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