India FMCG business reports 8.1% Volume Growth
New Delhi, October 31, 2018: 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, 2018.
Steady growth across its core businesses in India helped Dabur India Ltd mitigate the impact of geopolitical and currency devaluation headwinds in key overseas markets like Middle East and North Africa (MENA) to end the second quarter of 2018-19 financial year with an 8.5% growth in Consolidated Revenue. Dabur India Ltd’s Consolidated Revenue for Q2 of 2018-19 stood at Rs 2,125 Crore, up from Rs 1,959 crore a year ago.
Consolidated Net Profit the quarter grew 4.1% to Rs 377 crore, up from Rs 362 crore a year earlier. The domestic FMCG business grew by 8.6%, led by an underlying Volume Growth of 8.1%.
"Despite higher competitive intensity, we have sustained a good growth momentum in the domestic FMCG business with our key brands reporting strong market share gains during the quarter. The performance in our international business was relatively muted due to the weakness in the MENA region and currency devaluations in markets like Turkey. While the global macroeconomic environment continues to be challenging and competitive intensity remains high, we have delivered a steady performance during the quarter by efficiently managing the risks and challenges. The shift in festive season to the third quarter also impacted the overall performance for this quarter. However, the medium and long-term growth prospects in India and other emerging markets remain robust and we are confident that domestic consumer demand will gain pace in months to come,” Dabur India Ltd Chief Executive Officer Mr. Sunil Duggal said.
"We continue to invest behind our brands and enhance our distribution and go-to-market infrastructure. With consumer demand for nature and Ayurveda-based products on the rise, Dabur’s positioning as the ‘Science-based Ayurveda’ specialist will pave the way for future growth," Mr. Duggal added.
The Shampoo business for Dabur reported strong gains with a 49% surge during Q2 of 2018-19. The Health Supplements business grew by 12.3%, while the Skin care and Salon category posted an around 12% growth. The Home Care and Hair Oils businesses both grew by around 11%. The Digestives segment sales was up nearly 11% in Q2 of 2018-19, while the Toothpaste category grew by over 6% during the quarter with the flagship brand Dabur Red Paste reporting a 19.5% growth.
Dabur’s overseas business ended the quarter with an 8.9% growth, led by strong growth in markets like Egypt (27%) and Turkey (16%).
The Board of Directors of Dabur India Ltd declared an interim dividend of 125% for 2018-19. “Continuing with our payout policy, the Board has declared an interim dividend of Re 1.25 per share, aggregating to a total payout of Rs 266.17 Crore, including tax,” Dabur India Ltd Chairman Dr. Anand Burman said.
About Dabur India Ltd
Dabur India Limited is one of India’s leading FMCG Companies. Building on a legacy of quality and experience for 134 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 five flagship brands with distinct brand identities – Dabur as the master brand for natural healthcare products, Vatika for premium personal care, Hajmola for digestives, Réal for fruit-based beverages, and Fem for fairness bleaches & skin care.
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Dabur India Ltd