Dabur India on Wednesday posted a consolidated net profit of ₹490.1 crore for the second quarter ended September 30, down 2.8 per cent y-o-y amidst unprecedented inflationary pressures. Consolidated revenue for the quarter stood at ₹2,986.5 crore up 6 per cent.
The company’s board declared an interim dividend of ₹2.50 per share, aggregating to a total payout of ₹442.94 crore.
Urban sales better
Mohit Malhotra, CEO, Dabur India told businessline, “In the past five quarters we had seen rural demand growth trending higher compared to urban markets on the back of the infrastructure we have put in place. So we were bucking the trend. But the unprecedented inflationary pressures has been more pronounced in rural markets. In the second quarter, we saw 1 per cent growth in rural markets and 6 per cent growth (in terms of value) in urban markets, which was driven by modern trade and e-commerce channels, which are doing very well.”
“But we are seeing green shoots of recovery with the onset of the festival season. We are hopeful of rural markets reporting a smart recovery in the coming quarters,” he added.
The company said it saw market share gains across 95 per cent of its product portfolio including juices & nectars, digestives, shampoos and chywanprash. New launches contributed to around 4 per cent of sales in the second quarter, it added.
Overseas does better
The company’s international business reported a 12.3 per cent jump in constant currency terms led by growth in Turkey, Nepal and Egypt.
The FMCG company said its beverages business ended the quarter with a jump of over 30 per cent while the Foods business reported a growth of 21 per cent. “The home care business was up nearly 21 per cent, while the toothpaste category ended the quarter with an over 11 per cent growth. The shampoo and post-wash business ended the quarter up 9 per cent. Dabur’s Ayurvedic OTC business also reported a growth of over 9 per cent during the quarter,” the statement added.