Dabur Q1 Results: Net profit rises 3.5% to ₹457 crore

Dabur India, a prominent Fast-Moving Consumer Goods (FMCG) company, experienced a significant 11% rise in its consolidated revenue in Q1 FY24, reaching Rs 3,130 crore, compared to Rs 2,822 crore in the same period of the previous year. 

During the quarter, the company’s operating profit experienced a remarkable 11.4% growth, amounting to Rs 605 crore, compared to Rs 543 crore in the previous year. However, the operating profit margin remained unchanged at 19.3%. 

The company witnessed a 3.5% increase in its net profit for the quarter ended June 2023, reaching Rs 456.6 crore, as compared to Rs 441 crore recorded in the corresponding period of the previous year. 

The growth was attributed to robust double-digit expansion in both the Home and Personal Care (HPC) and Health Care (HC) divisions. When measured on a Constant Currency basis, the Q1 revenue growth stands even higher at 13.3%. 

In terms of specific divisions, Dabur’s OTC business reported impressive growth of 24.3% during the quarter. The Digestive business saw a significant increase of 14.3%, and the Home Care business recorded a notable 14.5% surge. 

The Oral Care portfolio exhibited a growth of 13%, while the Hair Care portfolio saw a nearly 10% increase during the quarter. However, the Beverages portfolio was impacted by unseasonal rains, leading to a growth slowdown, whereas the Foods business performed remarkably well with a growth rate of 35%. 

If we check the company’s international business, then it has achieved a remarkable 20.6% growth when measured in constant currency terms. Within this segment, the Turkey business witnessed an outstanding growth rate of 51.2%, followed closely by the Egypt business with a growth of 45.7%. Additionally, Sub-Saharan Africa experienced a solid 13% growth, and the MENA region achieved a respectable growth rate of 10.2%. 

Today, the broader market ended the session in red, which was also reflected in the shares of Dabur India. The stock started the trading session at Rs 558.90, representing a decline of 1.2% from the previous day’s closing price of Rs 565.65. The session concluded at Rs 554.70 per share on the BSE. 

Over the last month, the shares of Dabur India have not performed well and have generated a negative return for its investors. 

Disclaimer: This blog has been written exclusively for educational purposes. The securities mentioned are only examples and not recommendations. It is based on several secondary sources on the internet, and is subject to changes. Please consult an expert before making related decisions.