Dabur expects mid-single digit growth in Q4 consolidated revenues
- Dabur said the past year was challenging for consumer demand but expects improvement going ahead as macro-economic indicators remain strong
Packaged consumer goods maker Dabur India likely notched up a mid-single digit growth in its consolidated revenues in the March-ended quarter, the company said in its quarterly update on Thursday.
The company observed sluggish demand trends over the quarter, noting a pickup in rural growth spurred by price reductions in staples, which helped narrow the gap between rural and urban areas. "With a positive outlook for the rabi crop harvest and monsoon forecast to be normal, we expect consumption to pick up in the coming months. Dabur's consolidated revenue is expected to register mid-single digit growth during Q4 FY24,” said the maker of Vatika oils and Real beverages in a filing to the stock exchanges.
Dabur India is yet to announce its full year and quarterly earnings.
The company anticipates growth in the home and personal care segment in India to be in the high single digits, with the healthcare and food and beverages segments expected to experience low single digit growth. The food & beverage segment faces comparison with a high base from last year, while the healthcare portfolio was affected by a delayed winter season.
However, Badshah Masala is expected to continue its strong performance with high teen volume growth, the company added, attributing market share gains across its categories to effective market execution.
Fast-moving consumer goods (FMCG) manufacturers are anticipating a rise in volume growth this fiscal year following price reductions by various companies. FMCG volumes have been subdued for many firms, largely due to low demand for mass-market products. Dabur said the past year was “challenging” for consumer demand but expects improvement going ahead as macro-economic indicators remain strong.
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Dabur India expects its international business to have achieved double-digit growth in constant currency terms, driven by solid performance in the MENA region, Egypt, and Turkey. However, due to currency depreciation in Turkey and Egypt, the revenue translated into rupee terms is likely to exhibit mid-single digit growth, according to the update.
Dabur anticipates continued gross margin expansion due to decline in input costs and cost-saving measures.
“In line with the strategy to invest behind our brands we will see higher A&P spends. The operating profit is expected to grow slightly ahead of the revenue and post an improvement in year-on-year operating margins…Our focus on investing behind our brands, distribution expansion, manufacturing capabilities and organization will keep us in good stead to capture the opportunities in the marketplace,” the company added.
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First Published:4 Apr 2024, 03:36 PM IST
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