Dabur India third quarter profit surges 24%, revenue up by 26%

 

Friday, January 19, 2007

 

 

 

New Delhi, January 19, 2007: The Board of Directors of Dabur India Ltd (DIL) met here today to consider the unaudited financial results of the company for the quarter and the nine-month period ending December 31, 2006.

Riding on strong growth across all its core categories, Dabur India Ltd recorded a 23.7% growth in net profit during the third quarter of the 2006-07 financial year. Its net profit for the third quarter stood at Rs 71.73 crores, up from Rs 57.97 crores in the same period last year. Its turnover for the quarter also marked a 25.7% increase to Rs 508.70 crores from Rs 404.84 crores in the corresponding quarter of the previous fiscal.

 

For the nine-month period ending December 31, 2006, Dabur India net profit surged 34.2% to Rs 186.38 crores from Rs 138.86 crores in Q3 of 2005-06. The turnover, during the same period, registered a growth of 28.6% to Rs 1333.26 crores from Rs 1036.99 crores a year earlier.

 

"The key drivers of growth were International business, foods, oral care, health supplements and home care, all of which recorded strong double digit growth. The company is also moving forward on its plan to expand its existing product categories and new geographies," said Mr Sunil Duggal, CEO, Dabur India.

 

The third quarter saw Dabur India introducing a host of new products - like Vatika Root Strengthening shampoo and Chyawanshakti with high levels of ashwagandha to combat stress - which have been very well accepted in the market..

 

Dabur India Ltd (Consolidated) posted a 22.1% growth in net profit in the third quarter at Rs 79.27 crores, as against Rs 64.93 crores in the same period last year. Turnover for the quarter posted a 14.9% growth to Rs 617.59 crores, from Rs 537.40 crores a year earlier.

 

For the nine-month period ending December 31, 2006, consolidated net profit recorded a 25.5% jump to Rs 206.13 crores, from Rs 164.22 crores a year earlier. The turnover, during the same period, increased by 16.7% to Rs 1657.23 crores as against Rs 1419.64 crores in the corresponding period of the previous financial year.

 

Dabur Foods Ltd, a 100% subsidiary of Dabur India and the market leader in fruit juices with its REAL brand, posted a 24.9% increase in sales during the third quarter of this fiscal at Rs 62.83 crores, from Rs 50.29 crores a year earlier. Both Real and Real Activ range of juices continued to post impressive growth.

 

Overseas sales recorded significant gains during the nine-month period, reporting a 32.4% surge in turnover at Rs 222.16 crores as against Rs 167.75 crores in the corresponding period last fiscal. Growth was lead by strong performance in focus markets such as GCC countries, Egypt, Nepal and Pakistan.

 

"We have built strong capabilities to tap emerging opportunities. What is encouraging is that growth is coming primarily from our core markets, which is in line with our strategy for the international business. Our core brands of DABUR and VATIKA are driving this growth. Entry into new markets in the MENA (Middle East & North Africa) region will only add to the growth momentum," said Mr P D Narang, Group Director-Corporate Affairs, Dabur India.

 

Dabur International, a wholly-owned subsidiary of Dabur India, is setting up a greenfield manufacturing facility in Ras Al Khaimah in the UAE, called Naturelle LLC. This unit, which will initially manufacture personal care products for the Middle East region, will be the largest facility in the subcontinent.

 

 

During the quarter ended December 31, 2006, the merger exercise for three Balsara group entities - Balsara Hygiene Products Ltd, Balsara Home Products Ltd and Besta Cosmetics Ltd - with Dabur India was completed. With the completion of this merger, Dabur India formally became the No 3 player in the oral care business.

 

Corporate Communications Dabur India Limited PH:- 95120-3982000, 3001000 extn 2101/2547 Fax: 95120-4374935 Email:corpcomm@dabur.com