Dabur India Ltd - Update for Q3 FY2023-24

This update provides an overall summary of the performance and demand trends witnessed during the quarter ended December 31, 2023 (Q3 FY24). This will be followed by detailed financial results and earnings presentation once the Board of Directors of the Company approves the consolidated and standalone financial results for the quarter ended December 31, 2023.

The Quarter witnessed sequential improvement in demand trends although rural growth was still lagging urban growth. Early signs of revival in consumption are visible with improving trends in volumes. With pricing growth remaining subdued due to price increases in base year, growth is largely volume led.

Dabur's consolidated revenue is expected to register mid to high single digit growth during Q3 FY24.

In India business, F&B segment is expected to grow in high-single digits and HPC is expected to record growth in mid-single digit. Because of delay in onset of winter season, we anticipate the Health Care business to grow in low to mid single digit. Badshah Masala continued to perform well and is expected to post strong volume led growth in high twenties.

Our International Business is expected to register double-digit growth in constant currency terms, led by good momentum in MENA region.

Gross margins are likely to expand, led by moderating inflation and cost-saving initiatives. A significant portion of gross margin expansion will be channelled into enhancing advertising and promotion (A&P) spends. Consequently, operating profit is expected to grow slightly ahead of the revenue and post an improvement in Y-o-Y operating margins.

In summary, weexpectrecovery of consumption in both urban and rural markets in India due to improving macro indicators, increase in government expenditure and positive consumer sentiment. We remain committed to driving ahead of category, performance of our business segments and gain market shares across our portfolio. The focus on brand building, enhancement of digital capability, increasing distribution footprint and efficiency enhancement continues which will be the enablers for continued profitable growth and value creation.

Shares of Dabur India Limited was last trading in BSE at Rs. 566.10 as compared to the previous close of Rs. 551.05. The total number of shares traded during the day was 74307 in over 2301 trades.

The stock hit an intraday high of Rs. 567.20 and intraday low of 551.25. The net turnover during the day was Rs. 41759086.00.

Source : Equity Bulls

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DaburIndia INE016A01026 Q3FY24 PerformanceUpdate