Dabur Q1 web up 8%; meets boulevard estimate – Business Information

Consumer goods major Dabur on Thursday reported better-than-expected June quarter profit, driven by volume growth in rural markets. The company reported an 8% jump in its consolidated net profit for Q1FY25 to Rs 500 crore, against a Bloomberg consensus estimate of Rs 496 crore.

Consolidated revenue for the quarter stood at Rs 3,349 crore, up 7% year-on-year (y-o-y), slightly above the Bloomberg consensus estimate of Rs 3,343 crore.

The earnings were announced during market hours. Shares of Dabur closed 1.2% higher on the BSE at Rs 642.95 apiece on Thursday.

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The India FMCG business, which accounts for over 70% of Dabur’s revenue, posted a volume growth of 5.2% for the quarter, led by rural markets showing signs of recovery. Rural growth outpaced urban growth by 350 basis points y-o-y in Q1. This marks the second consecutive quarter where rural demand has surpassed urban demand for Dabur. The company derives over 40% of its revenue from rural markets, above the industry average of 33-35%.

Earnings before interest, tax, depreciation, and amortisation (Ebitda) rose 8.3% y-o-y in Q1 to Rs 655 crore, despite high food inflation. Ebitda margins for the June quarter stood at 19.6%, compared to 19.3% last year.

Dabur CEO Mohit Malhotra stated that the company would continue to invest heavily in its brands to drive market expansion. “It has been a good start to the financial year. We propose to sustain this momentum, especially in rural areas,” he said.

Malhotra added that the company was expanding its rural footprint to over 122,000 villages and had increased its product range with the launch of new affordable and rural-specific pack bundles across categories. Additionally, Dabur is investing in consumer activations in the hinterland to better connect with consumers.

Dabur’s international business reported an 18.4% growth in constant currency terms in Q1. The Egypt business reported nearly 64% growth, Nigeria grew by 181%, Sub-Saharan Africa by 21.4%, and MENA by 13%, the company said.