Moneycontrol Bureau
Personal care products manufacturer Dabur India's third quarter consolidated revenues grew 16.7 percent, higher than analysts' expectations, to Rs 1,909 crore compared to a year ago period, supported by strong growth in international business.
"Net sales growth was driven by strong volume growth across key categories of health supplements, air care, hair care, oral care, skin care and foods," the company said in its filing.
Net profit rose 15 percent year-on-year to Rs 243 crore, but that was squeezed due to weak operational performance and was lower than street forecast. Higher employee cost and advertising expenses also affected the profitability.
According to CNBC-TV18 poll, analysts on an average had expected net profit of Rs 250 crore on total income of Rs 1,880 crore for the quarter.
Volume growth of the FMCG company stood at 9 percent as against expectation of 10 percent.
Dabur’s international business grew 26 percent in the quarter ended December 2013 as against forecast of 20 percent, led by strong performance in GCC, Egypt and Nigeria.
"The GCC business reported a 21 percent growth, while sales in Egypt and Nigeria both grew by 16 percent. Going forward, we will continue to pursue an aggressive growth strategy," PD Narang, group director said.
Operational performance missed expectations. Earnings before interest, tax, depreciation and amortisation (EBITDA) grew 8.4 percent year-on-year to Rs 298 crore and operating profit margin declined 120 basis points to 15.6 percent as against analysts' forecast of Rs 320 crore and 17 percent, respectively.
Advertising-spends climbed 23.2 percent on yearly basis to Rs 290 crore and that as a percentage of sales rose 80 basis points to 15.2 percent compared to a year ago period.
Employee cost jumped 29 percent to Rs 158 crore in the quarter ended December 2013 from Rs 123 crore in corresponding quarter of last fiscal.
Sunil Duggal, chief executive officer said, "Focus on brand building and market expansion programs coupled with a greater degree of innovation has helped Dabur sustain strong growth in the core categories, which have been significantly aheadof the market. Going forward, the focus will be on pursuing an aggressive and profitable growth strategy."
In the quarter gone by, air freshener business under Odonil brand grew by over 27 percent while shampoo business growth stood at 25 percent and food business at 18 percent.
Home care business reported 16 percent growth and toothpaste 14 percent growth while skin care growth was seen at over 13 percent.
The stock closed at Rs 160.80, down 4.06 percent amid hefty volumes on the BSE.
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