Dabur India fell 1.38% to Rs 553.90 after the FMCG major's consolidated net profit shed 5.4% to Rs 475.94 crore despite of 3.4% increase in net sales to Rs 3,043.17 crore in Q3 FY23 over Q3 FY22.
On a consolidated basis, profit before tax in Q3 FY23 stood at Rs 620.92 crore, down 4.5% year on year. Total expenses increased 5.63% YoY to Rs 2,523.09 crore in Q3 FY23.The Q3 revenue growth stood at 5.7% on constant currency basis. The company said that the consolidated revenue crossed the Rs 3,000-crore mark, despite a highly challenging cost and operating environment.
Dabur mitigated the inflationary pressures, significant moderation in industry growth and dip in overall consumer sentiments to deliver a competitive growth of 3.4% in revenue.
Dabur posted market share gains across the portfolio, led by a 250 basis points improvement in juices & nectars market share. Dabur also reported a 70 basis points market share gain in hair oils to touch the highest-ever 16.2%. Dabur's share in the chyawanprash category improved by 30 basis points. Dabur also reported a 40 basis points increase in shampoo market share.
Dabur's home care business ended the quarter with an 18.2% growth. The ayurvedic OTC business grew by 76.8% in Q3, while the digestives category reported 11.2% growth. Dabur's food & beverages business reported a 6.4% growth during the quarter, while the toothpaste business, led by steady demand for the flagship Dabur Red paste, ended the quarter with a 32% growth.
Dabur's international business reported a 14% jump in constant currency terms, with a 3-year CAGR of 14.1%. The Turkey business grew by 97% while the Egypt business was up 35%. The Sub-Saharan Africa business reported a growth of 17%, while the SAARC market grew by 8%.
"We have delivered steady results in what continues to be a difficult cost and operating environment. We continued to adjust prices responsibly to reflect inflation, Our lndia business reported a growth of 3.3% with a 3-year CAGR of 9.5% and steady market share gains across portfolio, despite most operating categories reporting a decline, said Mohit Malhotra, chief executive officer of Dabur India. "The impact of inflationary pressures was more pronounced in the rural markets as marked downtrading and shift to more affordable and smaller packs led to rural growth lagging urban markets for the second quarter in a row for Dabur. However, we believe that this demand slump in rural has bottomed out as we are now seeing some green shoots of revival in demand in the hinterland. We are hopeful of rural demand reporting a smart recovery on the back of a record farm output and increased government spending. The urban growth will be driven by softening of inflation and buoyancy in new-age channels like Modern Trade and e-commerce," he added.
Dabur India is one of India's leading FMCG companies. It is one of the world's largest ayurvedic and natural health care company.
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