Reports 16.8% Volume Growth
New Delhi, November 3rd, 2020: The Board of Directors of Dabur India Ltd (DIL) met here today to consider the unaudited financial results of the company for the quarter ended September 30th, 2020.
Dabur India Ltd reported a strong growth in its performance for the second quarter of 2020-21, backed by sustained efforts in driving demand for its Ayurvedic Healthcare, Hygiene and Nutrition products, coupled with strong innovation to meet the emerging consumer needs in the wake of the COVID pandemic. Dabur ended Q2 2020-21 with a 13.7% growth in Consolidated Revenue at Rs 2,516 Crore, up from 2,212 Crore a year earlier. This is the highest Revenue growth reported by the Company in the last couple of years.
Consolidated Net Profit for Q2 of 2020-21 surged 19.5% to Rs 481.7 Crore as against Rs 403 Crore a year earlier.
Dabur’s India FMCG Business led the growth with a 19.8% surge, with an underlying FMCG Volume Growth of 16.8% during the Second Quarter of 2020-21. Dabur’s Standalone Net Profit grew 20.6% to Rs 392.7 Crore as against Rs 325.5 Crore a year earlier.
“While COVID-19 continues to impact people around the world, Dabur India Ltd’s strategic business transformation exercise to develop and implement aggressive growth strategies in the core business areas and successfully address the emerging challenges helped us deliver a healthy topline growth accompanied by an expansion in Margin. Our domestic Healthcare business reported a strong 49% growth, with the recent consumer-relevant innovations contributing to around 5-6% of our Revenue. Our International Business has also staged a smart recovery and reported a growth of 5.5% despite the key GCC market continuing to face macro-economic headwinds,” Dabur India Limited Chief Executive Officer Mr. Mohit Malhotra said.
Dabur, Mr. Malhotra said, continued to focus on strengthening its core Healthcare portfolio with the introduction of new innovations, coupled with heavy investments behind its Power Brands and expanding its distribution might. This has enabled the Company to grow ahead of categories and gain market share across the portfolio. As Dabur continued to move forward on its distribution expansion strategy in the hinterland, rural demand grew ahead of urban. Favourable Monsoon and enhanced stimulus announced by the Government as part of its overall thrust on boosting rural Economy is expected to further drive rural demand in the coming months. The e-commerce business for Dabur grew by over 200% in Q2 of 2020-21 and today has a saliency of 6% as compared to 2.1% a year earlier.
“Healthcare, particularly the portfolio of our immunity-boosting products, continues to be the outperformer for Dabur. This is also in line with our strategy of focusing on the Consumer Health categories. The Home & Personal care business also reported a recovery, growing by high single digits, while the domestic Foods Business saw a strong revival with in-home consumption returning to near normal levels. However, this category was impacted by the continued closure of Hotels, Restaurants and Institutional businesses,” Mr. Malhotra said.
The Health Supplements business for Dabur reported a 70.8% growth during Q2 of 2020-21. The Ayurvedic OTC range grew by over 56% while the Ayurvedic Ethicals business ended Q2 with an over 26% growth. While the traditional Skin Care business continued to face headwinds, the strong demand for our newly launched Personal Hygiene products range helped the overall category end the quarter with an over 38% growth. Dabur’s Oral Care Sales was up over 24% with its flagship Dabur Red Paste reporting strong double-digit growth. The Shampoo business, on the back of strong demand for Vatika Shampoo, grew by nearly 18% in Q2.
The Board of Directors of Dabur India Ltd declared an interim dividend of 175% for 2020-21. “Continuing with our payout policy, the Board has declared an interim dividend of Rs 1.75 per share, aggregating to a total payout of Rs 309.30 Crore,” Dabur India Ltd Chairman Amit Burman said.
The Board of Directors also announced the appointment of Mr. Mukesh Hari Butani as an additional director in the category of Non-Executive Independent Director on the Board of Dabur India Ltd with effect from January 01, 2021, for a term of five years. Mr. Butani is the founder of BMR Legal Advocates, an independent law firm specializing in Tax Policy, Advocacy & Disputes.
About Dabur India Ltd
Dabur India Limited is one of India’s leading FMCG Companies. Building on a legacy of quality and experience for 136 years, Dabur is today India’s most trusted name and one of the world’s largest Ayurvedic and Natural Health Care Company. Dabur India's FMCG portfolio today includes nine Power Brands – Dabur Chyawanprash, Dabur Honey, Dabur Lal Tail, Dabur Honitus and Dabur PudinHara in the Healthcare space; Dabur Amla, Dabur Red Paste and Vatika in the Personal Care category; and Réal in the Foods category.
For further information, Contact:
Dabur India Ltd