Marico vs. Dabur: Q1 FY2025 Business Update Breakdown

Marico

• Domestic Business: Modest volume growth, driven by Saffola Oils and Foods segments. Value Added Hair Oils faced headwinds but are expected to recover. Project SETU aims to expand direct reach.
• International Business: Strong double-digit constant currency growth on the back of resilient and broad-based growth across markets.
• Consolidated Revenue: High single-digit growth despite pricing cuts and currency headwinds. Expected to rise further due to volume improvement and favourable pricing.
• Margins: Gross margin expansion is anticipated due to the portfolio mix.
• Profit: Operating profit is expected to grow slightly faster than revenue, leading to a marginal increase in operating margin.
• Growth Strategy: Focus on core brands, digital-first brands, and the new collaboration with Kaya for premium personal care.

Dabur

• Consolidated Revenue: Mid to high single-digit growth expected.
• India Business: The business recorded mid-single-digit volume growth.
• Home & Personal Care (HPC) and Healthcare: High-single-digit growth anticipated.
• Beverages: Impacted by scorching summers.
• Food (Culinary): Strong momentum.
• Badshah Masala: Expected to deliver strong high-teen volume growth.
• International Business: Strong constant currency growth, but impacted by currency depreciation in Turkey and Egypt.
• Margins: Slight gross margin expansion due to price increases and cost-saving initiatives.
• Profit: Operating profit is expected to outpace revenue growth marginally.
• Focus: Continued brand investment and cost management.

Key Takeaways

• Both Marico and Dabur experienced moderate domestic volume growth in Q1.
• Marico’s international business performed significantly better than Dabur’s.
• Marico expects a stronger overall revenue growth trajectory due to volume improvement and favourable pricing.
• Dabur focuses on HPC and Healthcare and Badshah Masala for growth.
• Both companies are prioritising margin expansion and brand investments.

Overall, based on the Q1 performance, Marico seems to have a slight edge with stronger international business performance and projected revenue growth trajectory. However, Dabur’s strong growth in specific segments like HPC and Healthcare and Badshah Masala should be considered. Long-term performance will depend on the execution of their respective growth strategies.

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.