Companies

Dabur India net profit up 28% in Q1

Our Bureau New Delhi | Updated on August 03, 2021

Mohit Malhotra, CEO, Dabur India Ltd

Despite mobility restrictions and disruptions due to localised lockdowns, India FMCG business grew 35.4%

Dabur India’s consolidated net profit grew 28 per cent to ₹437 crore for the quarter ended June 30, from ₹342 crore in the corresponding period in the previous fiscal. Consolidated revenue from operations grew 32 per cent to ₹2,612 crore aided by strong volume growth and cost management strategies.

The company said that despite mobility restrictions and disruptions due to localised lockdowns its India FMCG business grew 35.4 per cent with an underlying volume growth of 34.4 per cent in the first quarter.

“Riding on the strength of its strategic business transformation exercise, Dabur demonstrated renewed agility and resilience in the face of the second wave of Covid-19. We applied learnings from last year on streamlining the supply chain to ensure minimal disruption in supplies while firmly focusing on delivering volume-led profitable growth. Our operating margin reported a 32.5 per cent growth during the quarter, which marked a 10 bps gain despite high inflationary pressures,” said Mohit Malhotra, CEO, Dabur India Ltd.

He said the company saw market share gains across all key verticals of healthcare, home care, personal care and foods during the quarter. E-commerce witnessed a growth of over 100 per cent and now contributes 8.2 per cent to the India FMCG business.

Rural coverage

“We continue to invest ahead of the curve in expanding our rural footprint. We have expanded our rural coverage by 16 per cent , from 60,000 villages at the end of 2020-21 to 69,000 villages in Q1, 2021-21. We plan to further expand it by 33 per cent to 80,000 villages over the next 2 years,” Malhotra added.

The FMCG major said that revival in discretionary spending continued during the quarter enabling home and personal care business to clock a growth of over 26 per cent.

“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 & Beverages business end the first quarter with an 80.4 percent surge,” it added.

The healthcare business clocked a growth of 30 per cent backed by over 52 per cent growth in Ayurvedic OTC business, 51 per cent in Ayurvedic ethicals business and about 24 per cent growth in health supplements category.

“Dabur's International Business continued to move ahead on the growth trajectory with an over 34 per cent jump in constant currency terms,” a company statement added.

Published on August 03, 2021

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