Fast moving consumer goods (FMCG) company Dabur India has posted a 10.3 per cent year-on-year growth in consolidated net profit at Rs 363 crore for the first quarter ended June 30, 2019, "despite the adverse macroeconomic environment and high competitive intensity".
"The world's leading ayurvedic and natural health care company had posted the consolidated net profit of Rs 329 crore in the same quarter last year," Dabur India said in a filing to the Bombay Stock Exchange.
Consolidated revenue of the owner of Vatika hair oil and Real juices rose by 9.3 per cent to Rs 2,273 crore in Q1FY20, from Rs 2,081 crore in Q1FY19.
"A robust distribution expansion strategy in rural India coupled with higher investments behind our power brands and a revamp of the supply chain infrastructure helped the company mitigate the impact of macro-economic headwinds to post a 9.3 per cent jump in consolidated revenue for the first quarter of 2019-20 financial year," Dabur India said in the regulatory filing.
On a standalone basis, the company's revenue for the quarter grew by 10.5 per cent y-o-y at Rs 1,628 crore, while net profit was up 11.8 per cent y-o-y to Rs 258 crore.
The company's operating profit (EBITDA) rose by 18.5 per cent y-o-y to Rs 457.7 crore, while operating margin improved by 157 basis points to touch 20.1 per cent in Q1FY20.
During the quarter under review, Dabur's total expenses increased to Rs 1,883.65 crore from Rs 1,752.17 crore in the year-ago period, registering a growth of 7.50 per cent.
The domestic business revenue grew by 11 per cent, led by volume growth of 9.6 per cent in FMCG business. During the quarter, Dabur's international business reported a 7.7 per cent growth, in constant currency terms, led by Turkey, which grew 40.7 per cent.
Segment-wise, Dabur's health supplements business reported a 19.6 per cent growth during the quarter, while the digestives category, with brands like Hajmola and PudinHara, registered over 18 per cent growth. The OTC and ayurvedic ethicals business grew by 14.5 per cent; its hair oil segment grew 12.1 per cent growth. The skincare category grew by over 12 per cent, while the toothpaste business, led by Dabur Red Paste, posted an 11.4 per cent growth during the first quarter.
"While the macroeconomic environment continues to be challenging with an overall demand slowdown in India and competitive intensity remaining high, we have executed well on our distribution expansion strategy in rural India which has resulted in consistent improvement of our performance," said Dabur India CEO Mohit Malhotra.
Going forward, the company will continue to invest behind our brands, accelerate onproduct innovation efforts, and enhance our capabilities for sustainable future growth," added Malhotra.
Shares of Dabur India closed 1.86 per cent lower at Rs 421 apiece on the Bombay Stock Exchange on Friday.
Edited by Chitranjan Kumar