India’s leading Science-based Ayurveda major Dabur India announced a Consolidated Net Profit of Rs 425 Crore for the second quarter of 2024-25 on a Revenue of Rs 3,029 Crore. The Board of Directors of Dabur met here today to consider the audited financial results of the company for the quarter ended September 30th, 2024.

Despite a challenging demand environment marked by high food inflation and a resultant squeeze in urban demand, Dabur continued to drive consumer engagement across its key brands to end the second quarter of 2024-25 with a Consolidated Revenue of Rs 3,029 Crore.

“Over the past couple of years, we have witnessed a marked shift in consumer buying patterns in favor of emerging channels like quick commerce, driven by the convenience this channel offers. This has resulted in the emerging channels growing at high teens, putting the General Trade under stress. To address the changing dynamics in the marketplace and support our distributor partners in tiding over the challenges, we took a proactive decision to rationalize inventory in the General Trade, which resulted in a temporary dip in sales during the quarter. However, the move has resulted in improving the long-term health and hygiene of our business, paving the way for healthy growth going forward,” Dabur India chief executive officer, Mohit Malhotra said. “This one-off adjustment notwithstanding, Dabur's business fundamental remains strong with secondary sales for the second quarter growing at over 2% and our 5-year Revenue CAGR for the India business at over 8%.”

Dabur continued to invest behind its brands, helping the India Business report market share gains across 95% of the portfolio. “We expect recovery in consumer demand in the coming quarters, both in urban and rural markets. We are focusing on strengthening our competitive edge in the marketplace by investing in scaling up our rural footprint and rolling out consumer-centric innovations. Our focused approach towards expanding our rural footprint to over 1.22 lakh villages reaped rich dividend as rural demand outpaced urban demand by 130 bps during the quarter. To cater to this wider network, we have expanded our product basket with the launch of affordable and rural-specific pack bundles across categories, besides investing in consumer activations in the hinterland to establish a better connect with our consumers,” Malhotra added.

Dabur's International Business reported strong constant currency growth of 13% during the second quarter. The Egypt business reported a near 73% CC growth, while MENA business grew by 10% and Sub-Saharan Africa grew by 26%. The Badshah business also reported a 15% growth in Q2.

Dabur is progressing well to meet its long-term sustainability commitments with a significant improvement in its Corporate Sustainability Assessment or CSA Score for 2024. Dabur has been ranked by DJSI amongst the top FMCG Companies in India with a score of 81, up from 72 a year ago. “We are committed to sustainability, ensuring our growth is responsible and environmentally friendly,” Malhotra said.

Dividend

The Board of Directors of Dabur India Ltd declared an Interim Dividend of 275% for 2024-25. “Continuing with our payout policy, the Board has declared an Interim Dividend of Rs 2.75 per share, aggregating to a total payout of Rs 487.39 Crore,” Dabur India Ltd Chairman Mr. Mohit Burman said.