Dabur India maintains margin guidance despite inflation, CEO says 'futile to spend so much on advertising'

Dabur India posted a net profit of Rs 522.38 crore for the quarter ended December 31, 2024.

Trade

• Watchlist
• Portfolio
• Message
• Set Alert

 

 

Choose Stock Exchange: BSE LIVE NSE LIVE

26 Aug, 2025 12:21

Volume

Todays L/H

More

×

As inflation weigh heavy and urban consumption lags, FMCG major Dabur India retained its margin guidance for the fourth quarter, while aiming for mid-single-digit top-line growth. At the current juncture, with the inflationary pressures seen on raw materials, Dabur India plans to mitigate costs through price increases, savings initiatives, and operational leverage.

With these factors weighing, Dabur India's A&P spends for the quarter have reduced. "I think it's futile effort to spend so much of money on advertising. It's important to consolidate your position," said CEO Mohit Malhotra in an earnings call with analysts, noting that while the 'pie' remains the same, growth is hard to get.

"Whenever the luxury is available in terms of margins, you want to invest money behind advertising to grow your brand. But when luxury of spend is not there, then you have to have a balanced approach. So you have to conserve money to maintain your margins," Malhotra added.

As a result, Dabur India will prioritize targeted spending to boost market share and attract more consumers. However, if margins improve, Dabur (India) will reinvest the excess into advertising. When market growth picks up, the Chyawanprash-maker will ramp up its A&P efforts.

Also Read | Dabur shares jump 4% after firm's Q3 net profit rises 2% to Rs 522 crore, revenue up 3%

Earlier today, Dabur India reported a net profit of Rs 522.38 crore for the quarter which ended on December 31. This marks an increase of nearly 2 percent from the Rs 514.22 crore net profit reported in Q3 of previous financial year.

Dabur reported a revenue of Rs 3,355.25 crore, higher  by 3 percent on-year from the Rs 3,255.06 crore revenue reported in the corresponding quarter of FY24.

Disclaimer: The views and investment tips expressed by investment experts on Moneycontrol.com are their own and not those of the website or its management. Moneycontrol.com advises users to check with certified experts before taking any investment decisions.