NEW DELHI :
Fast moving consumer goods company Dabur India Ltd on Thursday posted a 8.62% jump in consolidated net profit for the quarter ended December 31, at Rs398.87 crore, up from Rs367.21 crore a year ago. The consumer goods firm posted a 7% rise in consolidated revenue from operations for the third quarter to Rs2,352.97 crore, from Rs2,199.21 crore a year earlier.
The company's net profit was impacted by one-time impairment in value of investments to the tune of Rs20 crore, the maker of Real juices, and Vatika hair oil said in a statement to the media on Thursday. “Excluding this impairment, the net profit for Q3 of 2019-20 marked a 12.8% growth year-on-year," the company said in a media statement.
The company’s India FMCG business reported an underlying volume growth of 5.6% during the quarter. International business grew 11.7% in the third quarter.
Dabur’s categories posted mixed results during the quarter. The company’s domestic healthcare business that comprises of brands such as Chyawanprash and Pudin Hara posted a 10.7% growth compared to the year ago period. Under the healthcare business, the supplements business grew by 12.2% during the quarter, led by strong demand for its flagship Dabur Chyawanprash brand that gained market share of 300 basis points.
Growth in the company’s home and personal care portfolio that sells brands such as Odonil, Dabur Red toothpaste, and Vatika hair products came in at 3.5%, the company said in an investor presentation. While the foods category, that contributed 12.5% to the company’s Q3 India sales, dropped by 1.7%. The food category comprises of Real juices, and the Hommade culinary brands. The company said that as per data from market researcher Nielsen, juice and nectars category “declined by 11.6% (in volume) in Q3 due to downtrading to lower priced alternatives," impacting demand for its portfolio.
Dabur's results come at a time when demand for fast moving consumer goods has continued to remain weak in India.
"Demand for FMCG products continued to see a sharp slowdown with further deceleration during the quarter," Dabur India Ltd, chief executive officer, Mohit Malhotra said over an analyst call post the company's earnings on Thursday. Despite the difficult environment, Dabur reported a healthy growth of 7% in consolidated revenue, he added.
"While the global macroeconomic environment continues to be challenging and competitive intensity remains high, we have successfully tapped the growth opportunities to deliver a strong performance during the quarter. Our focus on strengthening our core healthcare portfolio with heavy investments behind our Power Brands, coupled with investment in expanding our rural footprint and enhancing our go-to-market approach, continues to serve us well. This has enabled us to grow ahead of categories and gain market share across our portfolio, he said in the media statement.
The near-term outlook for demand growth remains challenging with most key categories reporting a steady decline in Value and Volume growth.