FMCG major Dabur India closed the financial year 2018-19 with a 10.1 per cent revenue growth on the back of strong gains in market shares across key categories. Consolidated revenue for 2018-19 stood at Rs 8,533 crore, up from Rs 7,748 crore a year earlier.
"Consolidated net profit for 2018-19 marked a 6.5 per cent growth to Rs 1,446 crore as against Rs 1,358 crore in the previous fiscal," Dabur India said in a statement.
The company's operating profit (EBITDA) rose by 5.9 per cent to Rs 2,035.70 crore in FY19 from Rs 1,922.60 crore in the last year. The operating margin stood at 20.4 per cent versus 20.9 per cent last year.
"Material cost increased from 49.6 per cent in FY18 to 50.5 per cent in FY19 mainly due to higher promotional cost and adverse currency in international business," the company said. Other expenditure stood at 11 per cent as against 11.4 per cent in FY18 led by cost savings and efficiencies.
Dabur India's fast moving consumer goods (FMCG) business in India grew by 13 per cent, driven by 11 per cent volume growth in the domestic market. The performance of international business was relatively mute with a growth of 6.5 per cent, impacted by under performance of Middle East and North Africa markets and adverse currency movement in key markets.
In January-March quarter, the company posted a 6.5 per cent fall in consolidated net profit at Rs 371.49 crore as compared to Rs 397.18 crore in the same quarter last year, dented by one-off exceptional charge towards impairment of goodwill in its wholly-owned subsidiary HobiKozmetic, Turkey.
The total income of the owner of Vatika hair oil and Real juices stood at Rs 2,128.19 crore in Q4FY19 from Rs 2,032.91 crore in Q4FY18, registering a growth of 4.7 per cent.
The company said that demand slowdown towards the end of the fiscal year due to the liquidity issues and a prolonged winter season in North India affected its margins.
Segment wise, income from consumer care business rose 6.62 per cent y-o-y to Rs 1,788.56 crore, while retail business grew 12.80 per cent to Rs 31.46 crore in March quarter. Its food business revenue declined by 4.88 per cent to Rs 279.07 crore in March 2019 as against Rs 293.40 crore in the year-ago period.
"The gradual recovery of the domestic market was temporarily impacted by adverse liquidity conditions and the agrarian crisis, particularly towards the end of the financial year. Our India business demonstrated resilience and continued to report a steady growth with strong Market Share gains in key highly competitive categories," said Dabur India Chief Executive Officer Mohit Malhotra.
The company's board has recommended a final dividend of 150 per cent for the financial year 2018-19.
"Continuing with our dividend payout policy, the board has proposed a dividend of Rs 1.50 per share, aggregating to Rs 319.41 crore, including dividend tax," Dabur India Chairman Anand C Burman said.
Dabur India shares closed trade at Rs 382.45 a piece, down 3.91 per cent, on the BSE on Thursday.
Edited by Chitranjan Kumar