Dabur India fell 1.04% to Rs 428.75 on BSE after consolidated net profit dropped 24.2% to Rs 281.60 crore on 12.35% decline in net sales to Rs 1,865.36 crore in Q4 March 2020 over Q4 March 2019.
Consolidated profit before tax skid 12.59% to Rs 340.25 crore in Q4 March 2020 as against Rs 389.27 crore in Q4 March 2019. Current tax expenses jumped 53.78% to Rs 223.09 crore in Q4 March 2020 as compared to Rs 145.07 crore paid in Q4 March 2019. EBITDA fell 18.2% to Rs 428.10 crore during the period under review. The Q4 result was declared during trading hours today, 27 May 2020.
The company said that the exceptional event in the form of the COVID-19 outbreak and the resultant Iockdown significantly impacted its business in March 2020. Dabur said it was on track to deliver a 4.5% growth in quarterly revenue and 12.5% growth in net profit before exceptional, had COVID-19 not happened.
During Q1 June 2020, the company estimates an impact of Rs 400-450 crore on revenue from operations and Rs 60-80 crore on profit after tax as per assessment of current situation.
The company's factories were shut in the last week of March 2020 due to lockdown. Factory operations resumed selectively from the second week of April 2020, post approvals from local authorities, with limited manpower. Almost all factories are currently running at operational capacity of 60-70%. The company had net cash reserves of Rs 3800 crore as on 31 March 2020 to meet requirements in case of any emergency while the company does not forsee any liquidity crunch. Due to COVID-19, Dabur India did not experience any impact on the company's ability to service debt.
In the year ended March 2020 (FY20), Dabur reported a 2% growth in revenue from operations at Rs 8,704 crore, up from Rs 8,533 crore a year earlier. International business for Dabur reported a 4.9% growth during the 2019-20 financial year while India FMCG volume growth stood at 1.1%. Net profit for the full year stood at Rs 1,445 crore, up 0.2% from Rs 1,442 crore a year earlier. The FY20 net profit was impacted by one-time impairment in value of investments to the tune of Rs 100 crore. EBITDA rose 3% to Rs 2,097.70 crore during the year.
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The FMCG major continued to gain market share across all key categories like shampoos, toothpaste, hair oils, Chyawanprash and packaged juices & nectars during the year.
Speaking on the Q4 earnings, Mohit Malhotra, the chief executive officer (CEO) of Dabur India, has said: "Dabur opened the fourth quarter on a positive note, successfully tapping the growth opportunities. However, the COVID outbreak in March, followed by the nationwide lockdown, caused severe disruptions in our business and brought sales to a virtual standstill in the second fortnight of March 2020. With most of products across our health care, home & personal care and foods portfolio falling in the non-essential category, the pre-season sales of summer skewed products to meet the seasonal demand was severely impacted. As the lockdown restrictions eased gradually, Dabur has been at the forefront on delivering authentic Ayurvedic solutions to meet the emerging health care needs of consumers in the post-COVID market."
"Demand patterns have changed significantly, with consumers increasingly seeking Ayurveda- based interventions for boosting their immunity, besides products that meet their personal and household hygiene needs. We are already witnessing a 400% surge in demand for our flagship Dabur Chyawanprash and an 80% growth in Dabur Honey. With these products facing a stock-out in the market, we have already invested in expanding capacity to meet the growing demand. Dabur is well placed to successfully tap the emerging growth opportunities in healthcare and deliver profitable volume-led growth in the coming quarters," Malhotra added.
Dabur India is a fast moving consumer goods (FMCG) company. The company operates in various product categories, such as hair care, oral care, healthcare, skin care, home care and foods. Its business units include consumer care business, foods business and international business.
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