Dabur sees improvement in demand, rural growth in Q1. The company is optimistic about the future, citing a normal monsoon forecast and the government’s ongoing focus on macroeconomic growth.
Dabur, a homegrown FMCG company, announced a noticeable sequential improvement in demand trends for the June quarter, with a particular boost in rural growth, on July 5, 2024, PTI reports.
Read More: Petrol, Diesel Fresh Prices Announced: Check Rates In Your City On July 06
The Indian FMCG major is optimistic about the future, citing a normal monsoon forecast and the government’s ongoing focus on macroeconomic growth. “We expect the improvement to accelerate in the coming month,” Dabur stated in its quarterly update for the period ending June 30, 2024, PTI quoted.
Dabur anticipated mid-single-digit volume growth for its domestic business and consolidated revenue growth in the mid-to-high single digits for Q1 FY25. This growth is attributed to its well-known brands, including Dabur Chyawanprash, Dabur Honey, Dabur PudinHara, Dabur Lal Tail, Dabur Amla, Dabur Red Paste, Real, and Vatika, as pe the report.
“In India business, HPC (home and personal care) & Healthcare segment is expected to grow in high-single digits,” the company noted. However, the beverage segment faced challenges due to reduced travel and out-of-home consumption caused by the intense summer heat, while the food (culinary) category showed strong momentum, as quoted by PTI.
Dabur’s Badshah Masala business, acquired two years ago, is projected to achieve “strong volume-led growth” in the high teens, according to the update.
Read More: Is Reliance Jio Gearing Up For India’s Largest IPO? Analysts Weigh In
The company also highlighted robust growth in its International Business, which typically accounts for 25-30% of its overall revenue. However, Dabur noted that “severe currency depreciation in Turkiye and Egypt continued to have an impact on translated growth.”
Dabur reported stability in commodity prices during the June quarter. “Gross margins are likely to witness some expansion on account of rollover price increases and cost-saving initiatives,” the company said. Additionally, “The business continued to invest strongly behind the brands with A&P spends growing ahead of revenue.”
As a result, Dabur expects its operating profit to grow slightly ahead of revenue.
(With Inputs from PTI)
