Dabur India reported a 22% decline in consolidated net profit to Rs 294.22 crore despite a 7.7% rise in revenue from operations to Rs 2,517.81 crore in Q4 FY22 over Q4 FY21.
Profit before tax in Q4 FY22 stood at Rs 389.71 crore, down13.7% from Rs 451.64 crore posted in Q4 FY21.Operating profit grew 2.5% year on year to Rs 453.6 crore while operating margin declined to 18% in Q4 FY22 from 18.9% in Q4 FY21.
Dabur India said that it delivered another quarter with steady revenue growth despite significant and increasing cost headwinds taking a toll on consumer purchases.
Dabur's food & beverages business reported a 33.5% growth during the quarter with its juices & beverages business growing at 35%. The company said that its home care business was supported by strong performance of air fresheners, up by 11% in the quarter. The health supplements business, riding on strong demand for flagship brands like Dabur Honey and Dabur Glucose, ended up 9.7% during Q4 2021-22, while the over the counter (OTC) portfolio ended up 17%.
The revival in discretionary spending continued during the quarter, which helped the Home & Personal Care business grow by over 26%. The HairCare category was up nearly 39% during the first quarter, while the Home Care business grew by over 30% and the Oral Care business by over 21%. The Skin Care and Salon business (excluding Sanitisers) reported a 66% growth during the quarter.
Dabur reported market share gains across 99% of its product portfolio despite consumption slowdown and shrinkage in overall demand. In juices and nectars, Dabur grew ahead of the category and improved its market share by 610 basis points. The FMCG company also reported a 250 basis points gain in its Chyawanprash market share and a 40 bps gain in shampoo market share during the quarter.
Dabur's international business continued to move ahead on the growth trajectory with a 10.7% jump in constant currency terms and a 2-year constant currency CAGR of 17%. The Egypt business grew by over 12%, while the Namaste business was up 11% and the Turkey business posted a growth of over 47%.
On a full year basis, the company reported a 2.7% rise in the consolidated net profit to Rs 1,739.22 crore on a 13.8% rise in revenue from operations to Rs 10,889 crore in financial year ended 2022 over financial year ended 2021.
Commenting on the performance, chief executive officer, Mohit Malhotra said, "The dramatic rise in input costs was the major challenge during the quarter. We responded to this challenge with a mix of pricing actions and cost control measures. These are challenging times, and we are happy to have progressed well in this journey with consumer-centric innovations to expand our total addressable market and gain market share across 99% of our product portfolio. Innovation continued to be the cornerstone of our strategy with new launches contributing to 5% of our revenue. We also ended the year with a 15.8% constant currency growth in the International Business."
"Despite the near-term concerns around heightening inflationary pressures and a resultant consumption slowdown, Dabur will continue to plough investments behind our power brands, coupled with investment in expanding the rural footprint and enhancing the go-to-market approach to drive sustainable, profitable growth, going forward. Dabur has invested ahead of the curve in expanding its rural coverage and today reach around 90,000 villages. We have added 30,000 new villages to our network in the past one year alone," Malhotra added.
The board recommended a final dividend of Rs 2.7 per share for the financial year ended 31 March 2022.
Dabur India is one of India's leading FMCG companies. The company's FMCG portfolio today includes eight brands; Dabur Chyawanprash, Dabur Honey, Dabur Honitus, Dabur PudinHara and Dabur Lal Tail in the Healthcare space; Dabur Amla and Dabur Red Paste in the Personal care category; and Rl in the Foods & Beverages category.
Shares of Dabur India ended 1.55% lower at Rs 529.20 on Thursday.
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