India’s leading Science-based Ayurveda major Dabur India Ltd today reported a 3.4% growth in Consolidated Revenue for the Quarter ended December 31, 2022, to cross the Rs 3,000-crore mark for the time in a quarter, despite a highly challenging cost and operating environment. Consolidated Revenue posted a constant currency growth of 5.7%.
The Board of Directors of Dabur India Ltd met here today to consider the unaudited financial results of the company for the third quarter of 2022-23.
Dabur India Ltd braved the inflationary pressures, significant moderation in industry growth and dip in overall consumer sentiments to deliver a competitive growth of 3.4% in Consolidated Revenue for the third quarter of 2022-23 at Rs 3,043 crore. The International Business reported a 14% growth in constant currency terms. Consolidated Revenue posted a 3-year CAGR of 9%, reflecting the remarkable agility and resilience the business continues to demonstrate even in tough conditions.
Consolidated Net Profit for the third quarter stood at Rs 476 crore with the 3-year CAGR at 6.1%.
“We have delivered steady results in what continues to be a difficult cost and operating environment. We continued to adjust prices responsibly to reflect inflation. Our India business reported a growth of 3.3% with a 3-year CAGR of 9.5% and steady market share gains across portfolio, despite most operating categories reporting a decline,” Dabur India Ltd Chief Executive Officer Mr. Mohit Malhotra said.
Dabur remains intensely focused on operational excellence and delivering consumer-centric innovation to expand the total addressable market. “The impact of inflationary pressures was more pronounced in the rural markets as marked downtrading and shift to more affordable and smaller packs led to rural growth lagging urban markets for the second quarter in a row for Dabur. However, we believe that this demand slump in rural has bottomed out as we are now seeing some green shoots of revival in demand in the hinterland. We are hopeful of rural demand reporting a smart recovery on the back of a record farm output and increased government spending. The urban growth will be driven by softening of inflation and buoyancy in new-age channels like Modern Trade and e-commerce,” he added.
Dabur’s Home care business ended the quarter with an 18.2% growth. The Ayurvedic OTC business grew by 16.8% in Q3, while the Digestives category reported a 11.2% growth. Dabur’s Food & Beverages business reported a 6.4% growth during the quarter, while the Toothpaste business, led by steady demand for the flagship Dabur Red paste, ended the quarter with a 3.2% growth.
With the business fundamentals remaining strong, Dabur posted market share gains across the portfolio, led by a 250bps improvement in Juices & Nectars market share. Dabur also reported a 70bps market share gain in Hair Oils to touch the highest-ever 16.2%. Dabur’s share in the Chyawanprash category improved by 30bps. Dabur also reported a 40bps increase in Shampoo market share.
Dabur’s International Business reported a growth of 14% in Constant Currency terms, with a 3-Year CAGR of 14.1%. The Turkey business grew by 97%, while the Egypt business was up 35%. The Sub-Saharan Africa business reported a growth of 17%, while the SAARC market grew by 8%.