Dabur Reports 36% Increase in Ad Spends In Its Consolidated Biz For Q3 2023-24

Dabur India has released its financial results for the quarter ended December 31, 2023.

In Q3 2023-24, its consolidated revenue from operations is up 7 per cent at Rs 3,255 crore. Q3 consolidated revenue reports 10 per cent constant currency growth. Consolidating operating profit posts a 9.5 per cent growth and the net profit is up 8 per cent at Rs 514.2 crore. Its India FMCG volume growth stands at 6 per cent and international business posts 11.7 per cent constant currency growth.

Dabur India ended the third quarter of 2023-24 with a 7 per cent growth in revenue from operations at Rs 3,255 crore, driven by steady performance of both the home & personal care and food & beverages businesses. Revenue stood at Rs 3,043.2 crore in Q3 of 2022-23. The Q3 Revenue growth stands at 10 per cent on a constant currency basis.

Despite the delay in the onset of winter slightly impacting the healthcare and winter portfolio, Dabur’s India business ended the third quarter with a volume growth of 6 per cent.

The operating profit for the quarter marked a 9.5 per cent jump. Consolidated net profit for the quarter marked an 8 per cent jump to Rs 514.2 crore, up from Rs 475.9 crore a year earlier. Advertising spends for the quarter marked a 36 per cent growth in the consolidated business and 30 per cent in the standalone business.

“We remain intensely focused on our strategies of managing an agile and accountable organisation structure with a focus on superior product delivery and constructive disruption to drive sustainable, profitable growth across our portfolio. Moderating inflation coupled with buoyant consumer sentiments and our focussed investment in distribution footprint expansion in rural India helped demand from the hinterland bounce back for Dabur. Rural demand for Dabur grew 200 bps ahead of urban. We have also stepped up investment behind our brands to drive competitive volume growth, reflected in our higher advertising spends during the quarter,” says Dabur India's Chief Executive Officer, Mohit Malhotra.

“We have been investing in growing our rural footprint, which has expanded by 17,000 villages in the current fiscal from 100,000 to 117,000. We are working towards ending this year with a rural coverage of 1.2 lakh villages. Dabur’s rural distribution has been the highest in the industry, giving us a distinct advantage and helping drive our rural growth,” Malhotra adds.

Category Growth

Dabur’s digestives business ended the quarter with over 15 per cent growth while the ayurvedic ethicals business grew by nearly 7 per cent in Q3. Dabur’s shampoo and post-wash category reported an over 11 per cent growth. The toothpaste business ended the quarter with an industry-leading over 8 per cent jump, backed by toothpaste volume growth of 5 per cent. The home care business reported a 7 per cent growth while the beverage business returned to the growth trajectory and ended the quarter with a 7 per cent growth. The food business, including Badshah, ended the quarter with a 22 per cent growth.

With the business fundamentals remaining strong, Dabur posted market share gains across the portfolio, led by a 140bps improvement in hair oils market share. it also reported an 184bps gain in air freshener market share and a 151bps gain in chyawanprash market share.