India FMCG business reports 7.2% Volume Growth
New Delhi, October 31, 2017: 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, 2017.
Dabur India Ltd ended Q2 of 2017-18 financial year with a Consolidated Revenue of Rs 1,958.9 Crore as against Rs 1,981.6 Crore a year earlier. The comparable Consolidated Revenue growth adjusted for currency translation and GST marked an 8% growth during the second quarter of 2017-18 financial year.
The comparable Standalone Revenue growth for the quarter was 10.7%, led by an underlying Volume Growth in India FMCG business of 7.2%.
With the GST headwinds settling down and improved consumer offtake in domestic markets, Dabur India Ltd reported a strong surge in the domestic consumer growth during the second quarter of 2017-18 financial year. However, the overseas business performance was hit by a combination of steep currency devaluation in Egypt, Turkey and Nigeria, and the continued geopolitical disturbances in key geographies.
Consolidated Net Profit for the second quarter stood at Rs 361.9 Crore as against Rs 357.3 Crore a year earlier. However, adjusted for GST and currency translation, the Comparable Consolidated Net Profit marked a 7.2% growth during the quarter while the Comparable Standalone Net Profit also reported a 7.2% growth.
“The overall business environment continued to be challenging particularly with the overseas geographies like the Middle East and Africa facing geopolitical headwinds. In India, the trade channels have largely normalized post the introduction of GST and consumer offtake has been reporting a steady growth. We continue to invest behind our brands and are confident of our ability to report profitable growth, going forward. We have navigated the external business environment well. Our Standalone Operating Profit for the quarter reported a 11.2% growth,” Dabur India Ltd Chief Executive Officer Mr. Sunil Duggal said.
“The medium to long-term prospects, particularly for India, remain robust and we are confident that domestic consumer demand will gain pace in months to come. 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. We have lined up a number of exciting initiatives and are committed to
aggressively launch new products leveraging on our Ayurvedic heritage and cutting-edge Science,” Mr. Duggal added.
The Oral Care business for Dabur, led by continued demand for Dabur Red paste, continued to move forward on its strong growth trajectory and ended the quarter with around 23% growth. The Skin Care
and Salon business reported a 16% growth during the quarter, while the Foods business ended the second quarter with around 12% growth. The Digestives segment also reported a nearly 12% growth in Q2 of 2017-18.
In constant currency terms, Dabur’s business in Egypt grew by 38%, Nigeria by 30% and Turkey by 27%. These businesses were, however, impacted in translation due to steep currency devaluations.
The Board of Directors of Dabur India Ltd declared an interim dividend of 125% for 2017-18. “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 265.02 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 133 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