Dabur Q4 Consol. Net Profit surges 16.2% to Rs 350 Crore

India’s leading Science-based Ayurveda major Dabur India’s Full-year 2023-24 Consolidated Revenue crossed the Rs 12,000 Crore mark to end the year at Rs 12,404 Crore. This marks a 7.6% jump over the previous year's Rs 11,530 Crore. The Full-year Consolidated Revenue growth stands at 10.1% on a Constant Currency basis. Consolidated Net Profit for 2023-24 reported a 7.9% jump to Rs 1,843 Crore, from Rs 1,707 crore a year ago.

Strong execution of our Power Brand strategy, increased premiumization, and distribution footprint expansion coupled with the benefits of our stringent cost reduction actions helped Dabur India Ltd report a steady performance during the fourth quarter and the full year 2023-24. Our Operating Profit has shown a 13.9% improvement during the quarter. Dabur quarterly Net Profit surged 16.2% to Rs 350 Crore, up from Rs 301 crore a year earlier. Q4 Consolidated Net Profit, on a like-to-like basis, reported a 22.7% upsurge to Rs 370 Crore.

Consolidated Revenue for the quarter registered a 7.3% jump on Constant Currency basis. Revenue stood at Rs 2,815 crore, up 5.1% on INR basis from 2,678 Crore a year earlier. The Board of Directors of Dabur India Ltd (DIL) met here today to consider the audited financial results of the Company for the quarter and full year ended March 31st, 2024.

“We've ended the year with a steady performance, underscoring the power of the Dabur's brands. We have been investing heavily behind our brands, which increased by 33%, to drive demand and also sustain the growth momentum. This has helped us deliver steady sales and profit growth in the fourth quarter despite multiple headwinds. We continued to execute on our strategic playbook by driving operational excellence, delivering innovative and premium products, and expanding our retail footprint to build the foundation for long-term profitable, sustainable growth,” Dabur India chief executive officer Mohit Malhotra said. Premium products today account for 18% of Dabur’s portfolio.

Dabur India FMCG Business posted a Volume Growth of 5.5% for the full year. The India Business saw our key brands and products post category-leading growths with market share gains across 95% of the portfolio.

"Our mosquito repellent brand Odomos reported a 677bps gain in market share, while Chyawanprash reported a 138bps gain and our market share on the Hair Oil market saw a 115bps increase. Honitus also marked a 114bps market share gain while our brands carved a 53bps increase in the Juices & Nectars category."

"Dabur has been investing in growing the rural footprint, which has helped rural demand for our brands grow ahead of urban. Alongside, we have expanded our product basket in the rural market with the launch of newer affordable and rural-specific packs across categories to feed these markets and push demand growth. The Company has also invested in consumer activations in the hinterland to better reach out to consumers, giving them an opportunity to touch, feel and experience our products."

“Our rural coverage during the year expanded by 22,000 villages to 122,000 villages. Dabur’s rural distribution has, in fact, been the highest in the industry, giving us a distinct advantage and helping us drive rural growth. These ahead of curve investments have resulted in our rural business growing 400 bps ahead of urban,” Malhotra added.

Category Growths

Riding on strong demand for our highly differentiated product portfolio, Dabur’s Oral Care penetration now stands at 52%. Effectively, every second household in India is now a Dabur Oral Care Household. The quarter saw our Oral Care business swell by 22% with the toothpaste business reporting a 23% jump.

Our Digestives business, led by strong performance of Hajmola, ended the quarter up 16%. The Home Care business, on the back of strong performance of mosquito repellents, ended the quarter with a 7.5% growth. The Shampoo portfolio also reported an over 6% jump during the quarter. Dabur’s Foods business, including Badshah, grew by 20.6%.

International Business

Dabur also delivered strong performance in the overseas markets, with the International Business reporting a Constant Currency growth of 12% in the fourth quarter and 16.4% for the full year 2023-24. During the quarter, the Egypt business grew by 63%, while Turkey business was up 39% and Middle east & North Africa (MENA) markets posted a growth of 6.3%. The Sub-Saharan Africa business rose 23.8%.

Dividend

The Board of Directors recommended a Final Dividend of 275%, taking the Total Dividend for 2023-24 to 550%. “In line with our payout policy, the Board has proposed a dividend of Rs 2.75 per share, aggregating to Rs. 487.31 Crore,” Dabur India group director, P. D. Narang said.