Dabur Q4 net profit rises 16.5% to Rs 341 crore, declares Rs 2.75 dividend

Dabur Q4

Dabur India on May 2 reported consolidated net profit of Rs 341.22 crore for the March quarter, registering a growth of 16.5 percent from Rs 292.76 crore in the same quarter of the previous financial year.

In Q4FY24, the total revenue of the company was Rs 2,814.64 crore, rising 5.11 percent from Rs 2,677.80 crore in the year-ago quarter, the FMCG major said in a regulatory filing.

Revenue and net profit exceeded estimates. The company was expected to report a Rs 2,735-crore revenue, according to mean estimates of seven brokerage firms. The net profit was expected at Rs 335 crore in the January to March quarter.

The Board of Directors of the Company have recommended final dividend of Rs. 2.75 per equity share for the financial year 2023-2024.

Earnings before interest, tax, depreciation and amortization (EBIDTA) for the quarter was at Rs 467 crore growing by 14 percent. EBITDA margins have improved by 130 bps YoY to 16.6 percent.

"We have been investing heavily behind our brands, which tncreased by 33%, to drive demand and also sustain the growth momentum. This has helped us deliver steady sales and profit growth in the fourth quarter despite multiple headwinds. We continued to execute on our strategic playbook by driving operational excellence, delivering innovative and premium products, and expanding our retail footprint to build the foundation for long-term profitable, sustainable growth." said Mohit Malhotra, CEO, Dabur India.

Premium products currently make up 18% of Dabur's portfolio. The FMCG business in India achieved a volume growth of 5.5% for the entire year. Key brands and products in India experienced significant growth, leading their respective categories and gaining market share across 95% of the portfolio. Odomos, the mosquito repellent brand, saw a market share increase of 677bps, while Chyawanprash reported a gain of 135bps.

Dabur's market share in the hair oil segment increased by 115 bps. Honitus also experienced a market share gain of 114bps, and Dabur's brands saw a 53bps increase in the Juices & Nectars category.

Benefiting from robust demand for its diverse product range, Dabur's penetration in oral care now stands at 52%, meaning that approximately every other household in India uses Dabur's oral care products. In the latest quarter, the Oral Care business surged by 22%, primarily driven by a 23% increase in toothpaste sales.

The Digestives business, led by the strong performance of Hajmola, witnessed a 16% growth.

Similarly, the Home Care segment experienced a 7.5% growth, propelled by the success of mosquito repellents. Shampoo sales also saw a noteworthy increase of over 6% during the quarter. Dabur's Food business, including Badshah, expanded by 20.6%.

Furthermore, Dabur's international business exhibited significant growth, with a 112% increase in Constant Currency terms in the fourth quarter and a 16.4% growth for the full year 2023-24.

Notably, during the quarter, the Egypt business expanded by 63%, while Turkey's business grew by 39%, and the Middle East & North Africa (MENA) markets saw a growth of 6.3%. Additionally, the Sub-Saharan Africa business recorded a robust growth of 23.8%.

Following the earnings, shares of Dabur India were trading 2.20 percent higher at Rs 518.70 on BSE at 2:39 pm.