Dabur India, a leading player in the Fast-Moving Consumer Goods (FMCG) sector, shared its fiscal fourth-quarter results on Wednesday, revealing a profit of Rs 312.73 crore. This figure fell short of expectations, marking an 8.35% decrease compared to the Rs 341.22 crore profit from the same period last year. The company’s revenue from operations reached Rs 2,830.14 crore, slightly above the previous year’s Rs 2,814.64 crore for the same quarter. Meanwhile, Dabur’s Earnings Before Interest, Taxes, Depreciation, and Amortization (EBITDA) stood at Rs 426.8 crore.
Profit and Revenue Insights
A recent survey by CNBC TV18 had anticipated Dabur’s fourth-quarter profit to be around Rs 329 crore, with a revenue forecast of Rs 2,840 crore. However, the actual figures indicated a more challenging landscape.
- Profit: Rs 312.73 crore (8.35% lower than FY24)
- Revenue: Rs 2,830.14 crore (marginal increase from last year)
- EBITDA: Rs 426.8 crore
Challenging Market Conditions
In its regulatory filing, Dabur acknowledged the tough market environment characterized by high food inflation and an escalating cost of living. Despite these hurdles, the company reported market share growth across 90% of its product portfolio by the end of the fourth quarter of FY25. The overall demand in the FMCG sector remained subdued, yet Dabur managed to achieve a 2.1% Constant Currency revenue growth, totaling Rs 2,830 crore. Additionally, the total revenue for the fiscal year climbed to Rs 12,563 crore, up from Rs 12,404 crore the previous year, reflecting a 3.6% Constant Currency growth.
Leadership Perspective
Mohit Malhotra, CEO of Dabur India, commented on the company’s performance: “While we faced some challenges within the Indian market, our international ventures helped us navigate the complexities of the current economic climate. Our international segment posted an impressive 19% Constant Currency growth in Q4 and 17% for the entire year. We anticipate that consumer demand in India will gradually improve in the upcoming quarters, both in urban and rural areas. We’re committed to enhancing our competitive position by expanding our rural outreach and introducing consumer-centric innovations.”
Category Performance Highlights
Dabur experienced notable growth across several categories during Q4:
- Foods Sector: Over 14% growth
- Skin & Salon: 8% growth
- Shampoo: Approximately 4% increase
- Badshah Portfolio: 11% volume growth
The company also made significant strides in market share, achieving:
- Juices & Nectars: 60.6% market share (up 261 bps)
- Hair Oils: 19.1% market share (up 196 bps)
- Toothpaste: 15 bps increase in market share
- Air Freshener: 67 bps increase in market share
- Dabur Glucose: 112 bps market share improvement
Future Strategy and Dividend Announcement
Dabur remains focused on modernizing its core offerings, driving premiumization, and addressing gaps in its Home & Personal Care, Health Care, and Food & Beverages divisions. The company is also refining its Go-To-Market strategy to better adapt to the evolving market dynamics in urban India.
In a positive financial move, Dabur’s Board of Directors has proposed a final dividend of Rs 5.25 per equity share, translating to an impressive 525% payout for the financial year 2024-25. This brings the total dividend for the year to 800%, as stated by PD Narang, Group Director at Dabur India.
Dabur’s strategic approach and commitment to growth through innovation and market adaptation reflect its resilience in navigating economic challenges, setting a solid foundation for future success.
