Dabur India Q1 FY24 results: Net profit rises by 3.5% to Rs 456.61 cr, but stock dips

FMCG giant Dabur India Ltd on August 3 reported a consolidated net profit of Rs 456.61 crore for the first quarter of FY24, registering a growth of 3.52 per cent from Rs 441.06 crore in the year-ago quarter. 

Its total income in Q1 FY24 rose by 10.85 per cent to Rs 3,240.25 crore, compared to Rs 2,922.98 crore YoY.  On a sequential basis, the total income was up 15.78 per cent. It was Rs 2,798.52 crore in Q4 FY23. 

Despite robust results, Dabur India shares plunged to an eight-week low after news reports claimed the presence of carcinogenic materials in its honey product. At 3.30, Dabur stock was trading at Rs 555.35, down by 1.82 per cent.   

The FMCG major reported a 11 per cent growth in consolidated revenue at Rs 3,130 crore, up from Rs 2,822 crore a year ago, with an underlying volume growth of 3 per cent in the India FMCG business. 

Earnings before interest, tax, depreciation and amortization (EBIDTA) were at Rs 604.7 crore, growing by 11.2 per cent. The EBIDTA margin was at 19.3 per cent similar to the year ago period. 

Dabur's International Business reported a 20.6 per cent growth in constant currency terms, the company said in its regulatory filing. 

The company's media spends grew 30 per cent in the consolidated business and 28 per cent in the India business.

Dabur's OTC business reported a 24.3 per cent growth during the quarter on the back of its popular cough & cold brand Honitus. The Digestive segment of the company was up 14.3 per cent, while the Home Care business posted a 14.5 per cent jump.  

 The Oral Care portfolio grew by 12.7 per cent, while the Hair Care portfolio posted a near 10 perc ent  growth in the first quarter. While the Foods business grew by 35 per cent, the Beverages portfolio was impacted by the unseasonal rains. 

Dabur Red Paste gained a 50 bps market share, taking the overall Toothpaste market share to 16.9 per cent. Odomos gained 340 bps, taking our share of the mosquito repellent category to 58.9 per cent. Dabur also reported a 320-bps gain in Chyawanprash market share. 

Last month, Dabur India announced that its portfolio now consists of 17 brands with sales between Rs 100 crore to Rs 500 crore. 

The company, in its annual report, stated that five additional brands, which include Honitus, Real Drinks, Odomos, and Dabur Herb’l, crossed sales of over Rs 100 crore. 

Mohit Malhotra, Chief Executive Officer, Dabur India Limited, said: “We remain committed to our strategy of superior go-to-market execution by enhancing our distribution footprint, while focusing on driving growth for our power brands. We have initiated several measures to pursue greater efficiency and the gains were ploughed back in the form of higher investments. Our media spends grew by 30 per cent in the consolidated business and by 28 per cent in the India business.” 

Dabur Honey fails purity test 

A report in Zee News claimed that carcinogenic materials were found in Dabur Honey. The Department of Consumer Affairs has stated that hydroxymethylfurfural (HMF) naturally occurs in most kinds of honey and often serves as a quality indicator. 

The report stated that Dabur’s sample contained 176.57 mg of HMF, more than twice the permissible limit of 80 mg. Dabur’s second sample also contained 97.250 mg of HMF. 

Denying the reports, Malhotra said the report is "false and baseless". "The article is completely baseless without any scientific evidence and it has absolutely no legal or any merit in the substance on where the research which analytical lab it is," Malhotra told CNBC TV18. 

“We stand by the purity of Dabur Honey and we are the largest market leader not just in India, but in world. We export to around 100 odd countries and we conform with the regulations of every country in the world, including FSSAI, which is a regulatory body in India and every single batch of honey dispatched from a factory premises complies to FSSAI parameters," Malhotra added. 

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