Dabur Q1 FY17 consolidated net profit up 11.8% at Rs 292.8 cr

In the face of strong macroeconomic headwinds, Dabur India reported growth in its key businesses and ended Q1 of FY2017 with a 1.2 per cent growth in Consolidated Net Sales. Consolidated Net Sales for the first quarter of 2016-17 stood at Rs 1,923.9 crore, up from Rs 1,901.7 crore a year earlier.

Consolidated Net Profit for Q1 FY14 marked an 11.8 per cent growth to Rs 292.8 crore, up from Rs 261.8 crore in the same quarter last year.

Sunil Duggal, CEO, Dabur India, commented, “In the first quarter of 2016-17, we had to deal with a tough economic environment characterised by demand slowdown, intensifying competitive pressures and deteriorating geopolitical situation in select geographies like the Middle East and Africa. Despite these challenging conditions, Dabur remains on a steady course and has reported profitable growth. Our domestic FMCG business ended Q1 of 2016-17 with an underlying volume growth of 4.1 per cent even in this tough environment.”

He further said, “We are pursuing a prudent growth strategy and have taken steps to efficiently manage the emerging risks and challenges as well as protect our turf in the face of intensifying competitive pressures. Despite a sharp fall in growth rates in most consumer products segments, Dabur continues to focus on brand-building while leveraging its strong herbal heritage and positioning as the ‘Science-based Ayurveda’ specialist. This, we feel, will enable us to consolidate our market position as also pave the way for future growth.”

Dabur is also focusing on aggressive expansion of its manufacturing capability and will be investing Rs 500 crore within the 2016-17 fiscal to establish new production units as also expand its existing plants in India and abroad.

Category Growths

The Oral Care business – riding on strong demand for both toothpastes and toothpowders – posted a near 12 per cent growth during Q1 FY17. Dabur’s Foods business ended the quarter with an over 4 per cent growth, while the Home Care business reported an over 2 per cent growth.

The International Business reported a near 6 per cent growth, led by Nepal, Egypt and Turkey.