India’s leading Science-based Ayurveda company, Dabur India Ltd, announced a 7% growth in consolidated revenue for the first quarter of 2024-25 to Rs 3,349 Crore. The company is driven by steady growth across all key business verticals. The Q1 revenue growth stands at 10% on a constant currency basis.
Despite a challenging demand environment marked by high food inflation and unemployment rate, Dabur delivered a strong 8.3% growth in operating profit, demonstrating the resilience of its business model. Dabur ended the first quarter of 2024-25 with an 8% growth in consolidated net profit at Rs 500 crore, up from Rs 464 crore a year earlier. Its India’s FMCG business posted a volume growth of 5.2% for the quarter.
Talking about the company’s performance, Mohit Malhotra, CEO, Dabur India Limited, said, ‘‘It’s been a good start to the new financial year as we drove sequential recovery in volume growth, driven by rural markets, to report industry-leading performance across our key verticals. This allowed us to plow higher investments behind our brands to drive market expansion and sustain our growth momentum. The investments allowed us to drive demand during the quarter with key verticals like Health Supplements, Digestives, Shampoos, Toothpaste, Home Care and Beverages.’’
Mohit added, ‘‘Through disciplined execution of our go-to-market strategy, we continued to capitalize on our brand strength and deepen consumer engagement. Our focused approach towards expanding our rural footprint to over 1.22 lakh villages reaped rich dividends as rural demand outpaced urban demand by 350 bps during the quarter. To cater to this wider network, we have expanded our product basket with the launch of newer affordable and rural-specific pack bundles across categories, besides investing in consumer activations in the hinterland to establish a better connection with our consumers.’’
In terms of category growth, Dabur’s Toothpastes, Dabur Red Paste and its premium brand Meswak, reported a 12% growth during the quarter. The 100% Fruit Juice portfolio grew by 21%, while the Carbonated Fruit Drinks portfolio grew by 90%. The Digestives business reported an 11% jump. The Shampoo portfolio also rose by 13.7% while the Health Supplements business posted a 7% growth during the quarter. The food business grew by 21.3%. The company recently acquired the Badshah business which grew by 15%.
Dabur reported market share gains across 95% of its portfolio. Odomos gained a 518 bps market share, while the J&N portfolio reported a 330-bps improvement in market share. Dabur also reported a 194-bps gain in Air Freshener market share.
In terms of international business, the company reported an 18.4% growth in constant currency terms. The Egypt business reported a nearly 64% growth and Nigeria grew by 181%, while Sub-Saharan Africa grew by 21.4% and MENA by 13%.
Dabur has also made significant strides on the ESG (Environment, Social & Governance) front. The company is achieving its target of becoming a Net Zero Emissions Enterprise by 2045.
