The FMCG major's consolidated net profit declined 2.83% to Rs 490.06 crore on 6% increase in net sales to Rs 2986.49 crore in Q2 September 2022 over Q2 September 2021.
On a consolidated basis, profit before tax in Q2 FY23 stood at Rs 638.15 crore, down 3.5% year-on-year. Total expenses increased 8.7% YoY to Rs 2456.22 crore in Q2 FY23.The Q2 revenue growth stood at 8.5% on constant currency basis. The company said it delivered steady organic growth in a challenging environment, marked by unprecedented inflation and consequential impact on consumption.
Dabur mitigated the impact of unprecedented inflationary pressures through disciplined cost control, operational efficiencies and judicious price increases across key product categories.
Dabur's brands gained market shares across 95% of its product portfolio. Dabur reported a 410 bps market share gain in the juices & nectars category, while its share of the digestives category improved 270 bps. The company's chyawanprash market share increased 120 bps and its share of the shampoo category improved 40 bps. Dabur share of the hair oils market increased 20 bps. New launches contributed to around 4% of sales.
Dabur's foods & beverages business reported a strong 30% growth. The beverages business ended the quarter with a jump of over 30% while the Foods business reported a 21% growth. The home care business was up nearly 21%, while the toothpaste category, riding on strong performance of our flagship Dabur Red Paste, ended the quarter with an over 11% growth. The shampoo & post-wash business ended the quarter up 9%. Dabur's ayurvedic OTC business also reported a growth of over 9% during the quarter.
Dabur's international business reported a 12.3% jump in constant currency terms, led by strong constant currency growths in Turkey (86%), Nepal (25%) and Egypt (23%).
The company's board declared an interim dividend of Rs 2.50 per share for 2022-23.
"While the challenging economic environment continued to be a concern and impacted the purchasing power, we are seeing green shoots of recovery with the onset of festive season. The impact of inflationary pressures was more pronounced in the Rural markets with demand growth in hinterland lagging Urban markets for the first time in five quarters. However, we are hopeful of rural demand reporting a smart recovery in the coming quarters and we are investing ahead of the curve to ride this demand recovery by expanding our rural footprint by adding nearly 9,000 villages in Q2 of 2022-23 to take our total coverage to over 100,000 villages," Dabur India chief executive officer Mohit Malhotra said.
"Not one to rest on our past laurels, this year we have targeted to become Plastic Waste Positive, by collecting, processing and recycling 35,000 MT of post-consumer plastic waste pan-lndia. We are committed to creating circularity in the value chain to achieve a positive balance by 2030, besides becoming Water Positive by 2030 and Carbon Neutral by 2040," Malhotra said.
Separately, company's board approved a capital expenditure of Rs 325.87 crore for its Indore Project in Madhya Pradesh. The company will fund the capex through internal accruals. Under the proposal, the company will enhance capacity of Red Tooth Paste, Juice - 1 Litre and Juice - Portion Pack.
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 0.93% at Rs 532.10 on the BSE.
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