Dabur Q2 profit rises 1% to Rs363 crore
New Delhi: Dabur India Ltd on Tuesday reported consolidated net profit of Rs361.93 crore in the quarter ended 30 September as compared with Rs357.27 crore reported in the year-ago quarter. On absolute numbers, its net profit grew just 1.3%. However, the company said numbers are not comparable since the latest quarter came under the goods and services tax (GST) regime.
“Adjusted for GST and currency translation, the comparable consolidated net profit marked a 7.2% growth during the quarter while the comparable standalone net profit also reported a 7.2% growth,” Dabur India said in a statement.
The New Delhi-based packaged goods firm reported consolidated revenue at Rs1,958.9 crore in July-September quarter as against Rs1,981.6 crore in the year-ago period. According to the company, its consolidated revenue, after adjustments for GST and currency translation, grew by 8% during the quarter ended 30 September. Its standalone revenue, after adjustments, grew by 10.7%, backed by a 7.2% growth in packaged goods business.
“The overall business environment continued to be challenging particularly with the overseas geographies like the Middle East and Africa facing geopolitical headwinds. In India, the trade channels have largely normalized post the introduction of GST and consumer offtake has been reporting a steady growth. We continue to invest behind our brands and are confident of our ability to report profitable growth, going forward. We have navigated the external business environment well,” Dabur India Ltd chief executive officer Sunil Duggal said in a statement.
Besides geopolitical disturbances in some of the international markets, Dabur’s international business was also hit by “steep currency devaluation in Egypt, Turkey and Nigeria”.
In constant currency terms, Dabur’s business in Egypt grew by 38%, Nigeria by 30% and Turkey by 27%, the company said.
Duggal, however, said the company is optimistic about the medium to long-term prospects, particularly for India. “With consumer demand for nature and ayurveda-based products on the rise, Dabur’s positioning as the science-based Ayurveda specialist will pave the way for future growth. We have lined up a number of exciting initiatives and are committed to aggressively launch new products leveraging on our Ayurvedic heritage and cutting-edge science,” Duggal added.
During the quarter ended 30 September, Dabur’s oral care business grew 23%, skin care and salon business at 16%, and food and digestive business at 12% each.