FMCG firm Dabur Ltd on January 3 said the rural consumption for FMCG was resilient and continued to grow faster than urban in the December quarter.
"During Q3, rural consumption for FMCG was resilient and continued to grow faster than urban. While general trade was still under pressure, alternative channels like modern trade, e-commerce, and quick commerce continued to post strong growth. Dabur's consolidated revenue is expected to register low single digit growth during Q3FY25," said Dabur as part of its business update for the third quarter.
In India business, home and personal care (HPC) is expected to grow in mid- to high-single digits, while Health Care is expected to be flattish due to the delayed winter onset, added the company.
"While Beverages portfolio is expected to report muted performance, our culinary business under the brand 'Hommade' and 'Badshah' continued to perform well during Q3 and is expected to post strong double-digit growth," said Dabur.
On January 3, Dabur's shares on NSE closed 2% higher at Rs 524 apiece.
Dabur said the International Business is expected to register double-digit growth in constant currency terms, led by good momentum in MENA region, Egypt, Bangladesh and US business.
"In Q3, inflationary pressures were witnessed in some segments which were partially mitigated through tactical price increases and cost-efficiency initiatives. We anticipate flattish operating profit growth in Q3," added Dabur.
The FMCG major expects sequential improvement in demand going forward.
"With improving macroeconomic indicators, we expect FMCG growth to revive and sequential improvement in demand going forward. We remain committed to delivering superior performance across all business segments and enhancing market share within our portfolio. Our strategic priorities continue to centre on brand building, sustained profitable growth, and long-term value creation," said Dabur.
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