Dabur India Q3 Net Profit Up 16.4% to 282.8 Crore

The Board of Directors of Dabur India Ltd (DIL) met here today to consider the unaudited financial results of the company for the quarter and Nine-month period ended December 31, 2014.

Despite a challenging business environment and continued softer consumption trend across the industry, Dabur India Ltd ended the third quarter of 2014-15 with strong growth in its key categories of Health Supplements, Hair Care, Toothpastes and Home Care. Dabur India Ltd reported a 9.2% growth in Consolidated Net Sales during Q3 of 2014-15 to Rs 2,073.6 Crore. Consolidated Net sales stood at Rs 1,899.6 Crore in the same quarter last year. Dabur India Ltd’s Standalone Net Sales marked a near 12% jump to Rs 1,498.3 Crore in Q3 of 2014-15, driven by strong 11.7% growth in the domestic consumer products business.

The Company ended the third quarter with a 16.4% rise in Consolidated Net Profit to Rs 282.8 Crore, up from Rs 242.9 Crore a year earlier. Dabur ended Q3 of 2014-15 with a 17.8% growth in EBITDA.

“While the macroeconomic environment continues to be challenging and competitive intensity remains high, we continue to pursue a prudent growth strategy and have been efficiently managing the risks and challenges. Despite a sharp fall in growth rates in most consumer products segments, Dabur continued to focus on brand-building and market expansion programmes and reported strong growth in its core categories, which have been significantly ahead of the market. Going forward too, our focus will be on pursuing an aggressive and profitable growth strategy,” Dabur India Ltd Chief Executive Officer Mr. Sunil Duggal said.

Category Growths

The Toothpaste business for Dabur grew much ahead of the industry ending the quarter with a strong 19% surge. The Home Care business also reported an over 16% growth during the quarter, while the Health Supplements business grew by 13.5%. The Hair Care category, led by strong growth in Shampoo business, ended the third quarter of 2014-15 fiscal with a 12.1% growth while the Foods category reported a near 12% growth during the quarter.

The quarter also saw Dabur’s beauty retail subsidiary – NewU – mark a turnaround and report Profits for the first time in a quarter.

The growth in Dabur’s International Business was led by Egypt at 29%, Levant (comprising Yemen, Jordan, Lebanon & Syria markets) at 17% and GCC at 14%. “Going forward, we will continue to pursue an aggressive growth strategy,” Mr. Duggal added.