Dabur India's consolidated net profit gained 8.62% to Rs 398.87 crore on a 6.99% rise in net sales to Rs 2,352.97 crore in Q3 December 2019 over Q3 December 2018.
Consolidated profit before tax advanced 4.95% to Rs 482.34 crore in Q3 December 2019 as against Rs 459.57 crore in Q3 December 2018. Tax expense during the quarter fell 8.33% to Rs 85.79 crore as compared to Rs 93.59 crore in corresponding quarter last year. The Q3 earnings were disclosed during trading hours today, 30 January 2020.
The net profit was impacted by one-time impairment in value of investments to the tune of Rs 20 crore. Excluding this impairment, the net profit for Q3 of 2019-20 marked a 12.8% growth year-on-year.
EBITDA jumped 9% to Rs 567.40 crore in Q3 December 2019 over Rs 520.60 crore in Q3 December 2018. EBITDA margin stood at 24.1% in Q3 December 2019 as compared to 23.7% in Q3 December 2018.
The operating profit soared 10.7% to Rs 492.90 crore in Q3 December 2019 as against Rs 445.40 crore in Q3 December 2018.
Domestic FMCG business reported an underlying volume growth of 5.6% during the quarter. Contribution of domestic FMCG reduced to 71.1% from 72.2%.
Health supplements business grew by 12.2% during the quarter, led by strong demand for its flagship Dabur Chyawanprash. Riding on this, Dabur Chyawanprash reported an over 300 bps gain inmarket share to 64%.
Dabur's International business grew by 11.7% during the third quarter of 2019-20, led by strong local currency growth in key markets like Middle East and North Africa (MENA), Egypt, Nigeria, Turkey and Nepal. The international business contributed 26.1% during this quarter as compared to 25% corresponding quarter last year.
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 performanceduring the quarter. Our focus on strengthening our core Healthcare portfolio with heavy investmentsbehind our Power Brands, coupled with investment in expanding our rural footprint and enhancing ourgo-to-market approach, continues to serve us well. This has enabled us to grow ahead of categories andgain market share across our portfolio," Dabur India chief executive officer Mohit Malhotra said.
"The near-term outlook for demand growth remains challenging with most key categories reporting asteady decline in Value and Volume growth. We will continue to invest in building a sustainable growthplatform for the future with healthy investments in strengthening our brands and enhancing ourcompetitiveness in the marketplace to tide over the consumption headwinds," 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.
Shares of Dabur India lost 2.65% to Rs 478.60 on BSE. It hit a high of Rs 495.15 and a low of Rs 478.60 in intraday so far.
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