The FMCG major's consolidated net profit rose 4.71% to Rs 504.35 crore on 11.98% increase in net sales to Rs 2,817.58 crore in Q2 September 2021 over Q2 September 2020.
On a consolidated basis, profit before tax (PBT) rose 12.14% to Rs 661.13 crore in Q2 September 2021 over Q2 September 2020.The company's total expenses in the quarter rose 12.65% year-on-year to Rs 2268.47 crore.
All verticals of the business, from ayurvedic medicines to hair care, oral care, home care and food & beverages, reported a growth in sales and market share. Operating margin during the quarter marked a 9% growth.
Dabur's India FMCG business reported volume growth of 10%, marking the fifth successive quarter of double-digit volume growth.
Dabur's Food & Beverage business reported a strong 43% growth during the second quarter of 2021-22. The Digestives business grew by 22.7% while the Ayurvedic Medicines (Ethicals) business reported a 12.6% growth. Dabur's Hair Care category, riding on strong growth for both its Hair Oils and Shampoo businesses, ended the quarter with a 26.5% growth, while the Home Care business reported a 25.3% rise. The Toothpaste business continued to move forward on the growth trajectory, riding on strong demand for its flagship Dabur Red Paste which grew by 20%. The Toothpaste category ended the quarter with a growth of 15.2%. Dabur reported market share gains across over 95% of its portfolio.
Dabur's International business reported a constant currency growth of 13.8% during the second quarter, led by Sub-Saharan Africa (25%), Egypt (17.8%), SAARC (17.6%), Namaste (16.7%) and MENA (12.8%).
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"While the COVID fears have largely receded with the vaccination drive gathering pace and mobility improving, the operating environment remained challenging with unprecedented inflation impacting consumer sentiments in the run up to the festive season. Our strategic business transformation exercise last year helped us successfully address the emerging challenges and deliver a healthy topline growth despite the tough macroeconomic conditions. We have undertaken calibrated price increases and sharpened our focus on cost control to mitigate the impact. We continue to focus on rolling out consumer-relevant innovations, coupled with heavy investments behind our Power Brands and distribution expansion strategy, to deliver Strong, Sustainable and Profitable growth," Dabur India chief executive officer Mohit Malhotra said.
Dabur continues to invest in expanding its rural footprint and strengthening its digital capabilities. The investments bore rich dividend with rural demand outpacing urban demand during the quarter, and e-commerce contribution to domestic Sales reaching 7%.
"We are investing ahead of the curve in expanding our rural footprint. We have, in fact, surpassed our rural coverage target of 80,000 villages 18 months ahead of schedule and are now covering around 83,500 villages," Malhotra added.
The board has declared interim dividend of Rs 2.50 per equity share.
The board has also approved the enhancement in limit of non-convertible debenture (NCDs) to be issued on private placement basis from the existing limit of Rs 250 crore to Rs 500 crore. The enhanced limit shall enable the company to issue said NCDs from time to time in various tranches on private placement basis.
Dabur India is one of India's leading FMCG companies. It is one of the world's largest ayurvedic and natural health care company.
Shares of Dabur India were down 0.43% to Rs 595.40. The stock hit a high of Rs 604.45 and a low of Rs 589.05 so far during the day.
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