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NEW DELHI : Packaged consumer goods company Dabur India on Tuesday reported a 28.42% jump in June quarter consolidated profit at 438.30 crore, beating estimates. In the year-ago period it reported a profit of 341.30 crore.

The maker of Real Drinks and Vatika shampoo reported 32% growth in consolidated revenue from operations at 2,611.54 crore for the three months ended 30 June.

The company reported a revival in discretionary spending with its home and personal care category reporting a 26% year-on-year growth.

A poll of 14 brokerages pegged Dabur’s revenue at 2,385.30 crore, while expecting it to report quarterly profit of 402 crore. The company’s domestic FMCG business grew 35.4%, with an underlying volume growth of 34.4% in the first quarter of 2021-22, albeit on a low base. In the year- ago quarter, Dabur’s volumes were down 9.7%.

The numbers point to a lower impact of the second wave on the company’s supply chains as well as demand for its packaged foods, personal care products, beverages and immunity boosters. Operating profit grew by 32.5% during the quarter.

“Continued investments behind the power brands and increasing distribution footprint, coupled with a structured and balanced approach to driving cost management, helped Dabur overcome the challenging context of covid second wave," the company said.

Dabur operates in three categories—food and beverages, home and personal care, and healthcare. Home and personal care, with brands such as Vatika and Meswak toothpaste, is the largest contributor to its business in India.

Dabur’s food and beverages business that sells brands such as Dabur Hommade and Real drinks reported an 80.4% surge in revenue for the three months ended 30 June.

The company reported revival in the home and personal care category. “The hair care category was up nearly 39% during the first quarter, while the home care business grew by over 30% and the oral care business by over 21%. The skin care and salon business (excluding sanitizers) reported a 66% growth during the quarter," Dabur said in a media statement on Tuesday. Its healthcare business—including brands such as Chyawanprash and honey—reported a 30% growth during the quarter.

Sales via e-commerce were up 100% year-on-year and contribute to 8.2% of the India FMCG business, it said.

“We continue to invest ahead of the curve in expanding our rural footprint. We have expanded our rural coverage by 16%, from 60,000 villages at the end of 2020-21 to 69,000 villages in Q1, 2021-21. We plan to further expand it by 33% to 80,000 villages over the next two years," Mohit Malhotra, Dabur India’s chief executive officer said.

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