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Homegrown FMCG major Dabur India reported 7 per cent jump in consolidated net profit atRs 403 crore in the second quarter of the fiscal year 2019-20 against Rs 377 crore in the corresponding quarter previous fiscal. Consolidated revenue for the quarter ended September 30, 2019 stood at ₹ 2212 crore up 4.1 per cent.
“The net profit was impacted by one-time impairment in value of investments to the tune ofRs 40 Crore. Excluding this impairment, the net profit for second quarter of 2019-20 marked a 15.1 per cent growth year-on-year,” the company said.
Dabur India’s board declared an interim dividend of 140 per cent for 2019-20. “Continuing with our payout policy, the board has declared an interim dividend ofRs 1.40 per share, aggregating to a total payout ofRs 298.25 crore, including tax,” said Amit Burman, Chairman, Dabur India Ltd.
The domestic FMCG business of the company clocked a volume growth of 4.8 per cent in the quarter under review. Despite the ongoing consumption slowdown, it stated that it had increased market share in categories including toothpaste, hair oil, juice and shampoo.
“The domestic business continues to face heavy headwinds in the form of a sustained slowdown in demand, aggravated by the liquidity crunch in the market. While we continue to face macroeconomic headwinds, Dabur has efficiently managed the risks and challenges to deliver a steady performance ,” said Mohit Malhotra, CEO, Dabur India.
Talking about the company’s rural distribution expansion strategy, he said that in the second quarter the company has expanded its rural footprint to over 51,000 villages. “Riding on this expansion, rural demand continues to grow ahead of urban demand for Dabur,” Malhotra added.
In terms of category growths, while the health supplements business of the company grew by 14.4 per cent, the digestives category grew by 10.2 per cent in the second quarter. While the Ayurvedic Ethicals business grew by 7.2 per cent, Dabur’s Shampoo business, on the back of the relaunch of its Vatika Shampoo, grew by 12 per cent in the quarter under review. Sales of home care business and oral care business were up by 7 per cent and 5 per cent respectively, it added.
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