Dabur Q3 Results: Net Profit Rises 6% On Robust Performance In F&B, Personal Care Segments

The revenue from operations was higher by 7 per cent at Rs 3,255.06 crore for Q3FY24, while the revenue stood at Rs 3,043.17 crore in the corresponding quarter of the previous fiscal

FMCG major, Dabur India Ltd, reported a jump of over 6 per cent in the consolidated net profit on a year-on-year (YoY) basis in its third quarter (Q3) earnings on Wednesday. It logged a net profit of Rs 506.44 crore for the December quarter in the current financial year (FY24) against a net profit of Rs 476.65 crore in the third quarter of the previous fiscal year (FY23).

The revenue from operations was higher by 7 per cent at Rs 3,255.06 crore for Q3FY24, while the revenue stood at Rs 3,043.17 crore in the corresponding quarter of the previous fiscal. The firm attributed this growth to the steady performance of the Home & Personal care and Food & Beverages business segments, it said in the exchange release. The homegrown FMCG giant operates brands like Dabur Amla, Dabur Vatika, and juice brand Real. 

The company clocked total expenses at Rs 2,720.62 crore in the period under review, marking a growth of 7.82 per cent on a YoY basis. The India FMCG business logged a volume growth of 6 per cent in the quarter against the same period in the preceding fiscal year.

The total income of the firm stood at Rs 3,382.43 crore, up by 7.58 per cent on a YoY basis. “Despite the delay in onset of winters slightly impacting the Healthcare and Winter portfolio, Dabur's India Business ended the third quarter with a Volume Growth of 6 per cent. Advertising spends for the quarter marked a 36 per cent growth in the Consolidated business and 30 per cent in the Standalone business,” the firm informed in the statement. 

Elaborating on the results, Mohit Malhotra, CEO, Dabur India, said, “Moderating inflation coupled with buoyant consumer sentiments and our focussed investment in distribution footprint expansion in rural India helped demand from the hinterland bounce back for Dabur. Rural demand for Dabur grew 200 bps ahead of urban. We have also stepped-up investment behind our brands to drive competitive volume growth, reflected in our higher advertising spends during the quarter.”

The firm also increased its rural footprint by 17,000 villages in the current fiscal year from 100,000 to 117,000. “We are working towards ending this year with a rural coverage of 1.2 lakh villages. Dabur's rural distribution has been the highest in the industry, giving us a distinct advantage and helping drive our rural growth,” Malhotra added.