Companies

Dabur India Q4 net profit up 34.4 per cent

Our Bureau New Delhi | Updated on May 07, 2021

Consolidated revenue grew by 25.3 per cent to ₹2,337 crore

The brand says, it has gained market share across key categories

Dabur India has reported consolidated net profit of ₹378 crore for the fourth quarter ended March 31, up 34.4 percent compared with ₹281 crore in the corresponding quarter previous fiscal. Consolidated revenue grew by 25.3 per cent to ₹2,337 crore for the quarter under review continuing its double-digit sales momentum.

For the fiscal year 2020-21, the FMCG major posted a consolidated net profit of ₹1,693 crore up 17.2 per cent compared to the previous fiscal, while consolidated revenue stood at ₹9,562 crore up 10 per cent

In a statement, Amit Burman, Chairman, Dabur India Ltd said, “The Board has proposed a final dividend of ₹3 per share, aggregating to ₹530.23 crore.” The company said it gained market share across key categories including shampoos, toothpaste, hair oils, chywanprash and packaged juices and nectars during the fourth quarter as well as the financial year.

Mohit Malhotra, CEO, Dabur India Ltd said that despite a challenging environment the company recorded another quarter of double-digit, profitable sales growth.

“Our strategic business transformation exercise to develop and implement aggressive growth strategies in our core business areas has led to a more flexible company, helping us successfully navigate the emerging headwinds. Our India FMCG Business led the growth with a 28.3 per cent surge, with an underlying best-ever FMCG volume growth of 25.4 per cent during the fourth quarter of 2020-21,” Malhotra added.

However, the company added that the operating environment remains challenging as the country battles a devastating second pandemic wave. “Despite the uncertainty related to the extent and length of the fresh wave, we will respond to the challenges by sharpening focus on our Power Brands and the Ayurvedic healthcare portfolio, besides building increased flexibility into our planning and Go-to-Market strategies to drive profitable growth and gain market share,” he said.

Healthcare growth

The company said the healthcare piece of its business grew by 23 per cent in the fourth quarter led by nearly 39 per cent growth in Ayurvedic ethical business, 34 per cent growth in OTC portfolio, 20 per cent growth in digestives and 18 per cent growth in the health supplements category.

The sequential revival in discretionary spending enabled home and personal care business to record a growth of 32.6 per cent in the March quarter. “The Oral Care category was the outperformer in this category, reporting an over 42 per cent growth during the fourth quarter, led by a 45 per cent surge in the toothpaste business. Dabur ended the year with a 120 bps gain in market share in the toothpaste category,” the company added.

While shampoos category witnessed a strong growth of 33 per cent, hair oils business was up 24 per cent and Skin Care & Salon business grew by nearly 38 per cent. At the same time the food and beverage business, also grew by nearly 28 per cent.

Dabur India’s management in the earnings call said that the company is looking to invest ₹550 crore over the next 4-5 years to augment existing production capacities as well as set up a greenfield facility in Central India for the healthcare business.

Published on May 07, 2021

Follow us on Telegram, Facebook, Twitter, Instagram, YouTube and Linkedin. You can also download our Android App or IOS App.

This article is closed for comments.
Please Email the Editor