Conference Call with Dabur India Management and Analysts on Q2FY24 Performance and Outlook. Listen to the full earnings transcript.
Personal Products company Dabur India announced Q2FY24 results: 1. Financial Performance: - Dabur India Limited reported a 7.3% growth in Revenue from Operations for Q2FY24, reaching Rs 3,203.8 crore. - Consolidated Revenue showed a 10.4% Constant Currency growth. - Operating Profit grew by 10%, with a 16% surge when excluding exceptional legal costs. - Net Profit increased by 5.1% to Rs 515.1 crore, or 14.1% when excluding exceptional legal costs. - India's FMCG Volume growth stood at 3%, while the international business saw a 23.6% Constant Currency growth. 2. India Business Performance: - Key brands and products in the India FMCG market showed category-leading growth and gained market share across 90% of the product portfolio. - Volume growth for the India FMCG business was 3%. - Ad Spends for the quarter increased by 42.6% in the Consolidated business and 40.3% in the Standalone business. - Gross margins improved due to moderating inflation. 3. International Business Performance: - Dabur's international business experienced strong growth, with a 23.6% Constant Currency increase. - The MENA business grew by 18.4%, Egypt by 35%, and the Turkey business by 78%. 4. Category Performance: - The Digestive business, driven by Hajmola, grew by 18.1%. - The home care business reported a 15.1% growth. - Ayurvedic OTC and ethical business grew by 8.1%. - Dabur Red toothpaste franchise showed high single-digit growth and gained market share. - The beverage business was impacted by unseasonal rains, while the food business saw a 40.4% surge. - Recently acquired Badshah brand reported a 16.4% growth. 5. Dividend: - Dabur India declared an Interim Dividend of 275% for 2023-24, totaling Rs 2.75 per share and Rs 487.31 crore in payout. 6. Sustainability Focus: - Dabur improved its ranking on the Dow Jones Sustainability Index by 140%. - Dabur aims to achieve Net Zero in its entire value chain by 2045. "We have delivered steady Revenue and double-digit Operating Profit growth with improvement in gross margins led by moderating inflation. We believe we are on the right path with our strategic playbook. We remain focused on managing our business with agility, leveraging our strong distribution footprint while enhancing our margins, quarter after quarter." said Mohit Malhotra, CEO of Dabur India. "We have witnessed a marked sequential improvement in urban demand, led by new-age channels. While rural growth still lags urban demand, the gap has reduced. We are increasingly optimistic about the future as we are seeing green shoots of recovery in Rural sentiments. We will continue to invest behind our brands, distribution infrastructure, and innovation to deliver volume-led profitable growth," he added Result PDF