Dabur India Q4 net surges 18.9%; FMCG biz reports 7.7% volume growth

Riding on strong growth across its key business categories and geographies, Dabur India Ltd ended the fourth quarter of FY2017-18 with a Comparable Consolidated Revenue growth of 11.1 per cent at Rs 2,032.91 crore. Consolidated Net Profit reported an 18.9 per cent surge during Q4 of FY 2017-18 to Rs 396.20 crore. 

Dabur’s Comparable Standalone India Revenue for the quarter marked a 10 per cent increase, while Standalone Net Profit grew 17 per cent. Standalone Revenue for Q4 of FY2017-18 stood at Rs 1,509.62 crore and Standalone Net Profit was Rs 353.58 crore. The domestic FMCG business reported an underlying Volume Growth of 7.7 per cent during the quarter. 

Commenting on the results, Sunil Duggal, Chief Executive Officer, Dabur India, said, “While we continue to face macroeconomic headwinds in some parts of the world, Dabur has efficiently managed the risks and challenges to deliver steady growth and report a resilient margin performance. We have delivered another strong performance in the quarter with our India Operating Margin touching a historical high of 27.2 per cent. Our Operating Margin has increased on the back of improved operating efficiencies and judicious cost management. Despite growing competitive intensity, the India business posted a healthy volume growth and continues to outperform the market in key business categories. Going forward, we will continue to invest behind our brands to successfully tap the significant growth opportunities and deliver profitable volume-led growth.” 

Category Growth 

The Shampoo business ended Q4 with a growth of over 31 per cent. Dabur Honey’s sales continued to report strong gains, growing by around 24 per cent, driving the Health Supplements category growth to 14 per cent in Q4. The Toothpaste sales reported a 14 per cent growth, led by the Dabur Red franchise, which grew by 20 per cent. Health Care category posted an over 11 per cent growth during Q4 of 2017-18, while the Hair Oils business, riding on strong demand for both Coconut Oils and Perfumed Oils, reported an around 9 per cent growth. 

“We are witnessing early signs of revival in consumer sentiment, especially in rural India. Rural demand has been growing at a faster pace. Favourable monsoons and a likely stimulus by the Government as part of its overall thrust on rural growth is expected to further boost rural demand,” Duggal added. 

During the quarter, Dabur’s International Business reported a 16.8 per cent growth, in constant currency terms. Sales in GCC markets grew 51 per cent, led by Saudi Arabia, which reported an 82 per cent growth during the quarter. The Business in Egypt reported a 38 per cent growth, while sales in Nepal grew by around 19 per cent. 

Full-Year Results 

Dabur India Ltd’s Comparable Consolidated Revenue for FY2017-18 grew 6.9 per cent. Consolidated Net Profit for the year stood at Rs 1,354.39 crore, up 6.1 per cent. Comparable Standalone Revenue for 2017-18 was up 8.3 per cent, while Standalone Net Profit marked a 7.4 per cent growth at Rs 1,072.05 crore. 

Dividend 

The Board of Directors has recommended a Dividend of 625 per cent, which includes a Final Dividend of 125 per cent and a one-time Special Dividend of 500 per cent. This brings the Total Dividend for the year to 750 per cent. “To mark the 25th year of Dabur’s listing on the Stock Exchanges, the Board has proposed a special dividend of Rs 5 per share in addition to the final dividend of Rs 1.25 per share, aggregating to Rs 1,327.25 crore, including Dividend Tax,” said Dr Anand C Burman, Chairman, Dabur India.

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