Dabur Q4 FY2021 net profit surges 34.4% to Rs 378 cr; Revenue up 25.3%

Dabur India Ltd leveraged the emerging growth opportunities and braved the growing headwinds to continue its double-digit sales momentum in the fourth quarter of 2020-21 financial year ended March 31, 2021. Riding on sustained efforts to drive demand for its Ayurvedic Healthcare, Foods and Nutrition products businesses, coupled with the increased focus on distribution expansion, Dabur India Ltd reported a 25.3% jump in its consolidated revenue for Q4 FY2021.

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The Q4 2020-21 consolidated revenue stood at Rs 2,337 crore, up from Rs 1,865 crore a year earlier. Consolidated net profit for the quarter surged 34.4% to Rs 378 crore from Rs 281 crore a year earlier. Dabur’s standalone revenue rose 30.3% to Rs 1,722 crore during the quarter.

For the 2020-21 financial year, Dabur India Ltd reported a 10% growth in consolidated revenue at Rs 9,562 crore, while consolidated net profit was up 17.2% to Rs 1,693 crore. Dabur continued to gain market share across all key categories like Shampoos, Toothpaste, Hair Oils, Chyawanprash and Packaged Juices & Nectars, during the quarter and the full year.

“In a challenging market environment, we have delivered another consecutive quarter of double-digit, profitable Sales growth. Our strategic business transformation exercise to develop and implement aggressive growth strategies in our core business areas has led to a more flexible company, helping us successfully navigate the emerging headwinds. Dabur's financial situation remains strong with a 25.6% growth in our Operating Profit during Q4 2020-21. Our India FMCG Business led the growth with a 28.3% surge, with an underlying best-ever FMCG Volume Growth of 25.4% during the fourth quarter of 2020-21,” said Dabur India Ltd Chief Executive Officer, Mohit Malhotra.

The operating environment remains challenging with the emergence of the second and more devastating wave of COVID. Malhotra further said, “As the fresh wave of COVID-19 continues to impact lives and livelihood around the world, we stand with all those affected and are committed to protecting and supporting our employees, partners and communities in the face of this unfolding crisis. Despite the uncertainty related to the extent and length of the fresh wave, we will respond to the challenges by sharpening focus on our Power Brands and the Ayurvedic Healthcare portfolio, besides building increased flexibility into our planning and Go-to-Market strategies to drive profitable growth and gain market share.”

Category Growths

Dabur’s Healthcare business reported a strong 23% growth in Q4 with the Ayurvedic Ethicals business growing by 39.1%, OTC business reporting a growth of 34%, the Digestives business growing by 20%, and the Health Supplements category ending the quarter with a nearly 18% growth.

The group also witnessed a sequential revival in discretionary spending, which helped the Home & Personal Care business grow by 32.6%. The Oral Care category was the outperformer in this category, reporting an over 42% growth during the fourth quarter, led by a 45% surge in the Toothpaste business. Dabur ended the year with a 120 bps gain in market share in the toothpaste category.

Within HPC, the Skin Care & Salon business grew by nearly 38%, while Shampoos continued to gallop ahead with an over 33% growth and the Hair Oils business grew by over 24%. The Home Care business marked a smart turnaround during the quarter and ended with an over 24% growth.

Despite continued pressure on the institutional and HORECA business, the Food & Beverages business marked a turnaround to report a nearly 28% growth during the quarter.

International Business

Dabur’s International Business continued to move ahead on the growth trajectory with a 19.4% jump in INR terms and 21% in Constant Currency terms. The Dubai business grew by over 25%, while the Egypt business was up nearly 24% and the SAARC business posted a growth of 29%.

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