Dabur India slides on expecting mid-single digit growth in Q4.

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Dabur India slipped 3.92% to Rs 510.45 after the company said that its demand trends will remained sluggish during the quarter.

The company said that rural growth picked up fuelled by price roll backs in staples which led to the gap between rural and urban narrowing. With a positive outlook for the rabi crop harvest and monsoon forecast are expected to further boost consumption in the coming months.

The companys consolidated revenue is expected to register mid-single digit growth during Q4 FY24. The inorganic revenue growth which was to the extent of around 2.3% till YTD Dec 2023 on account of Badshah acquisition is now factored in the base.

In India business, home and personal care (HPC) segment is expected to grow in high-single digits. Healthcare and food and beverage (F&B) segments are expected to register low single digit growth. F&B had a high base of last year and healthcare portfolio was impacted due to delayed winter. Badshah Masala continued to perform well and is expected to post strong volume led growth in high teens. The company continued to gain market share across our categories driven by strong execution in market.

On a brighter note, the companys International Business is expected to register double-digit growth in constant currency terms, driven by good momentum in the Middle East and North Africa (MENA) region, particularly Egypt and Turkey. However, currency depreciation in Turkey and Egypt will affect the translated revenue in INR terms will show growth in mid single digits.

The companys gross margins to continue expanding due to a decrease in input costs and cost-saving initiatives. In line with their strategy to invest in its brand, the firm will increase their advertising and promotion (A&P) spends. The operating profit is expected to grow slightly ahead of the revenue and post an improvement in Y-o-Y operating margins.

Looking ahead, the company expects an improvement in consumption due to positive macroeconomic indicators. The company’s focus on investing in their brands, expanding distribution, manufacturing capabilities and organization will position them well to capture the opportunities in the market place.

Dabur India is among the top four FMCG companies in India. It has business interests in healthcare, personal care and food products. The company offers products in over 100 countries across the globe, covering health and personal care segments across the herbal and natural space.

The FMCG major’s consolidated net profit rose 8.04% to Rs 514.22 crore on 6.96% increase in revenue from operations to Rs 3,255.06 crore in Q3 FY24 over Q3 FY23.

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First Published: Apr 04 2024 | 2:50 PM IST



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