India’s leading Science-based Ayurveda major Dabur India reported an 8.1% growth in Consolidated Revenue for the First Quarter of 2022-23 with an underlying Volume growth of 5% in the India FMCG business. The Q1 2022-23 Revenue growth, which stands at 10.3% on Constant Currency basis, comes on a high base of 32% in the same quarter last year.

The Board of Directors of Dabur India Ltd (DIL) met here today to consider the unaudited financial results of the Company for the quarter ended June 30th, 2022.

Dabur continued to demonstrate agility and resilience to deliver steady Revenue growth despite consumer sentiments dwindling in the face of significant and increasing inflationary headwinds. Dabur reported a Consolidated Revenue of Rs 2,822 Crore in the first quarter of 2022-23 financial year, up from Rs 2,612 Crore in the same quarter a year ago. Consolidated Revenue for the quarter reported a 2-year CAGR of 19.4%.

Dabur mitigated the impact of unprecedented inflationary pressures and supply chain constraints through disciplined cost control and judicious price hikes across categories. Dabur ended the first quarter with a Net Profit of Rs 440.3 Crore, up 0.7% from Rs 437.3 Crore a year earlier, with the India FMCG Business reporting a 5% Volume growth on a high base of 34%.

“Our brands continued to grow significantly ahead of the market, gaining market shares across all key categories. Despite the macro-economic headwinds, we remained focused on rolling our consumer-centric innovation that expanded our total addressable market, and report strong, sustainable, profitable growth. The demand environment remained stressed in view of the heavy inflation, which saw consumers switch to more affordable smaller packs of branded consumer goods. Both rural and urban demand growth have been at par for Dabur. Rural demand for Dabur was driven by the ahead-of-the-curve investments in expanding our rural footprint to over 91,500 villages in Q1, up from 89,800 villages in March 2022. Urban growth, on the other hand, was driven by new-age channels like Modern Trade, which grew by 42% during the quarter,” Dabur India chief executive officer, Mohit Malhotra said.

Innovation continues to be the cornerstone of Dabur’s strategy with new launches contributing to 4.4% of Sales. Dabur's International Business reported an 8% jump in Constant Currency terms, led by strong growths in Turkey (88%), Sub-Saharan Africa (35%), Nepal (30%) and Egypt (17.5%). The International Business reported a 2-year CAGR of 12.9%.

Category Growths

Dabur’s Foods & Beverages business reported a strong growth, led by 51% jump in the Beverages business. The Foods business also reported 36% growth during the quarter.

The Home Care business was up 52%, while the Skin & Salon business reported a 11.4% rise during the quarter. The Oral Care business, riding on strong performance of our Toothpaste brands, ended the quarter with a 12.5% growth. Sustained demand for Hajmola amd PudinHara helped the Digestives business end the quarter up 31%.

Despite the consumption slowdown and shrinkage in overall demand, Dabur reported market share gains across 98% of its portfolio. In juices and nectars, Dabur grew ahead of the category and improved its market share by 330 bps. Dabur also reported a 240 bps gain in Chyawanprash market share and a 190 bps gain in Honey market share during the quarter. Dabur also reported 30 bps gain in Hair Oil market share to corner the highest-ever volume share in the category at 15.4%. Dabur’s shampoo market share reported a 50 bps gain while its share of the Mosquito Repellent Cream category grew by 260 bps.