New Delhi: Packaged consumer goods maker Dabur India Ltd on Wednesday reported a 5% increase in consolidated net profit in the quarter ended 30 September, as higher domestic demand offset slack in its overseas business.
Profit rose to Rs357.3 crore in the three months from Rs340.2 crore a year ago. Consolidated revenue rose 1% to Rs1,975.7 crore from Rs1,955.3 crore in the year-ago period.
Net profit from Dabur’s India business increased 17.7% to Rs268.7 crore in July-September, up from Rs228.20 crore a year earlier. India revenue grew 2.3% to Rs1,348.1 crore from Rs1,318.4 crore.
Consumer demand in India is still below par while sales in markets such as the Middle East and Africa have been “hit by “worsening geopolitical situation,” Sunil Duggal, chief executive officer, Dabur India, said in a statement.
“We continue to invest behind our brands and are confident of our ability to report profitable growth, going forward. Even in a tough environment, we have navigated the external business environment well and our domestic FMCG business ended Q2 of 2016-17 with a volume growth of 4.5%,” he added. FMCG is short for fast moving consumer goods.
Dabur’s home care business grew by around 20% backed by strong demand for the mosquito repellent Odomos and air freshener Odonil, the company said in its result statement.
The foods business grew by more than 15% and skin care business rose 7% during the quarter.
“The medium to long-term prospects, particularly for India, remain robust and we are optimistic that domestic consumer demand would gain pace in months to come, riding on good monsoons and a slew of government initiatives announced recently,” Duggal said.
“We are confident that our focused strategy and positioning as the ‘Science-based Ayurveda’ specialist will pave the way for future growth. We have lined up a flurry of many exciting initiatives and are committed to aggressively launch new products leveraging on our Ayurvedic heritage and cutting edge science,” Duggal added.
During the second quarter, Dabur launched a bunch of new products and variants across geographies. The fresh launches include its entry into the fizzy drinks market with Réal VOLO, a fruit juice-based aerated drink.
The company expanded its presence in the professional skin care market with OXYLIFE Tan Clear and OXYLIFE Pro Youth Pure Oxygen Facial, and extended the Honitus brand with the launch of Dabur Honitus Hot Sip, marketed as a product that helps fight cough and cold.
Dabur shares gained 2.71% to Rs292.15 on a day the BSE’s benchmark Sensex fell 0.91% to 27,836.51 points.