Home / Companies / News /  Dabur India expects Q3 revenue in mid-single digit, stock down by nearly 4%

FMCG major Dabur India Ltd said on Friday its consolidated quarterly revenue is expected to report low to mid-single digit revenue growth, as rural demand continued to remain under pressure. However the company did see pickup in demand late in the third quarter.

"Demand trends for the industry remained weak during Q3 FY23 with rural markets continuing to remain under pressure. This was further accentuated by late onset of winter in north India. However, early signs of moderate recovery were visible towards latter part of the quarter coupled with some abatement in inflation," said Dabur in its regulatory filing.

For the Dabur India business, the firm said it is expected to report low to mid-single digit revenue growth due to challenging macro-economic environment and muted category growths.

The healthcare portfolio showed positive growth trajectory, while the F&B business growth will see some moderation.

"Dabur's India business is expected to report low to mid-single digit revenue growth. Healthcare portfolio returned to positive growth trajectory, still navigating high bases of the pandemic. F&B business continues to trend at robust levels. During the quarter, F&B's growth will see some moderation on account of early onset of the festive season," said company in its regulatory filing.

"Continuing the trend of double-digit CAGRs of the business in H1 FY23, the 3-yearCAGRs in this quarter will be in high single digits for HPC and Healthcare and double digits for Food & Beverages," it added.

The modern trade channels and e-commerce continued to report double digit growth, while rural markets showed early signs of recovery towards the end of the quarter, said Dabur.

"The organized channels of Modern Trade and E-commerce continued to report double digit growth. Rural markets showed early signs of recovery towards the end of the quarter and could be further bolstered by the upcoming harvest season, MSPs and expected spending by the government," said the firm.

Dabur's international business is expected to post double-digit revenue growth during the quarter.

"Inflation started to cool off during the quarter. As a result, gross margins will be marginally better sequentially. The adverse currency movements in International Business and inflation will lead to near term impact on operating margin, which is expected to be lower by 200-250 bps as compared to Q3 FY22," said the FMCG major.

"While the environment has been challenging, the company has stayed the course and continues to invest strongly behind Power Brands, Innovation, Distribution expansion and a strong back end which will enable us to improve our market shares and achieve profitable and sustainable growth, " it added.

Godrej Consumer Products on Thursday said that firm sees higher third-quarter sales growth and profit margins due to strong demand for its home and personal care products and a let-up in input costs, while the FMCG sector witnessed slow growth driven by poor rural consumption and a slowdown post the festive season.

Marico on Wednesday said that the firm's consolidated revenue will be in low single digit in the December quarter on a year-on-year basis due to a muted recovery in rural demand amid elevated inflation. This even as demand for its higher-end products from urban customers held steady.

Dabur India Ltd reported a 2.85 per cent YoY decline in its consolidated net profit to 490.86 crore for the second quarter ended September 30 from 505.31 Cr reported in Q2FY22.

On Friday, the company's scrip was down 3.74 per cent down at 551.45 at BSE.

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