In a business update, Dabur India on January 4said its domestic business revenue is expected to register mid to high single digit growth during the third quarter of financial year 2023-2024.
In India business, F&B (food & beverages) segment is expected to grow in high-single digits and HPC (home and personal care) is expected to record growth in mid-single digit.
Because of the delay in the onset of winter season, Dabur said it anticipates the healthcare business to grow in low to mid single digit. Badshah Masala continued to perform well and is expected to post strong volume led growth in the high twenties, it added.
“The quarter witnessed sequential improvement in demand trends although rural growth was still lagging urban growth. Early signs of revival in consumption are visible with improving trends in volumes. With
pricing growth remaining subdued due to price increases in base year, growth is largely volume led,” the company said.
Dabur’s international business is expected to register double-digit growth in constant currency terms, led by good momentum in the MENA (Middle East and North Africa) region.
The company did not provide an actual revenue figure. It will be released during its earnings announcement.
Gross margins are likely to expand, led by moderating inflation and cost-saving initiatives, Dabur believes. A significant portion of gross margin expansion will be channelled into enhancing advertising and promotion (A&P) spends.
“Consequently, operating profit is expected to grow slightly ahead of the revenue and post an improvement in Y-o-Y operating margins,” the FMCG company said.
Earlier, shares of Dabur ended up 2.73 percent to end the day at Rs 566.10.
Dabur said it expects recovery of consumption in both urban and rural markets in India due to improving macro indicators, increase in government expenditure and positive consumer sentiment.
“We remain committed to driving ahead of the category, performance of our business segments and gain market shares across our portfolio. The focus on brand building, enhancement of digital capability, increasing distribution footprint and efficiency enhancement continues which will be the enablers for continued profitable growth and value creation,” said Dabur.
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