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Immunity-boosting products outperformer for Dabur; sales of sanitiser drops: CEO Malhotra

The 136-year-old company will continue its innovation-based journey, going forward as well

November 03, 2020 / 08:07 PM IST

COVID-19 has made consumers health conscious which is seen helping Dabur India. Dabur has seen a robust growth of immunity-boosting products such as Dabur Chyawanprash and Dabur Honey in the second quarter of FY21.

“Dabur recorded strong growth on the back of 2x sales of Dabur Chyawanprash and robust double-digit growth in Dabur Honey,” said Mohit Malhotra, Chief Executive Officer, Dabur India in an earnings concall post the announcement of Q2 results adding that Dabur’s market share in Chyawanprash category increased by 190 bps.

The Health Supplements business for Dabur reported a 70.8 percent growth during Q2 of the fiscal 2020-21.

On the other hand, sales of sanitisers has been falling for the company.

On the question of sanitiser sales falling for Dabur, Malhotra agreed that Dabur Sanitiser sales have gone down as multiple players have entered the market.

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“The prices have also come down, volumes are also getting reduced. It is not a sustainable business,” he added.

The company had registered a total sales of santisers at around Rs 80 crore in the first quarter of FY21 which dropped to merely Rs 12 crore in the second quarter of FY21.

The 136-year-old company will continue its innovation-based journey, going forward as well. However, Malhotra refrained from disclosing the new launches that they are working on.

In the quarter gone by, Dabur launched Dabur Vedic Suraksha Tea, Dabur Single Herbs Range including Giloy, Tulsi, Ashwagandha and Amla. It also launched Dabur Honey Tulsi and Dabur Honey Ashwagandha, Dabur Ayurvedic Nasal Drop and Dabur Himalayan Apple Cider Vinegar.

Dabur India reported a strong growth in its performance for the second quarter of 2020-21, driven by demand for its Ayurvedic Healthcare, Hygiene and Nutrition products.

Dabur ended Q2 of FY21 with a 13.7 percent growth in consolidated revenue at Rs 2,516 crore, up from Rs 2,212 crore a year earlier. The company’s consolidated net profit for Q2 of 2020-21 surged 19.5 percent to Rs 481.7 crore as against Rs 403 crore a year earlier.

Dabur’s India FMCG Business led the growth with a 19.8 percent surge, with an underlying FMCG volume growth of 16.8 percent during the second quarter of 2020-21. Dabur’s standalone net profit grew 20.6 percent to Rs 392.7 Crore as against Rs 325.5 crore a year earlier.

Malhotra pointed out that rural growth has been better than the urban growth.

Speaking about the e-commerce platform, Malhotra said their e-commerce business have grown by over 200 percent in Q2 of FY21. The business has grown to 6 percent as compared to 2.1 percent a year ago.

Within home and personal care, Red Toothpaste continued to see good demand momentum, according to Malhotra.

"While the traditional skin care business continued to face headwinds, the strong demand for our newly launched personal hygiene products range helped the overall category end the quarter with an over 38 percent growth," he said.

Malhotra also said that Dabur’s oral care sales was up over 24 percent with its flagship Dabur Red Paste reporting strong double-digit growth. The shampoo business, on the back of strong demand for Vatika Shampoo, grew by nearly 18 percent in Q2.

Meswak and Babool franchise also reported robust double-digit growths. Toothpaste market share improved by 90 bps.

Within the foods segment, domestic juices business saw a growth of 6 percent with market share of Real Juice increasing by 170 bps and Activ Coconut Water reporting strong double-digit growth. Recent launches of Real Mango Drink in PET, Real Amla Plus and Real Frappe showed good traction, Malhotra said.

Among Digestives, Pudin Hara portfolio saw strong double-digit growth in Q2 FY21. Hajmola portfolio was impacted due to restricted outdoor activity, minimal outside food consumption and closures of restaurants.

Going forward we will continue to grow business by aggressively investing behind brands staying focused on health and hygiene and driving innovation and restyling products, Malhotra said.
Himadri Buch
first published: Nov 3, 2020 08:07 pm

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