In the third quarter of the current fiscal year, Dabur has increased its spending on Advertisement and Publicity by 36.13% on a YoY basis to Rs 244.54 crore. It had spent Rs 179.64 crore on the same in the corresponding quarter, last year.
In the quarter ended December 31, 2023, the FMCG major’s Total Expenses amounted to Rs 2720.62 crore, which is 7.83% higher than Rs 2523.09 crore it spent in Q3FY23.
On the other hand, the conglomerate’s Total Income also increased from Rs 3144.01 crore in Q3FY23 to Rs 3382.43 crore in the third quarter ended December 31, 2023.
That being said, the company’s Revenue from Operations also grew 6.96% YoY to Rs 3255.06 crore in Q3FY24, as against Rs 3043.17 crore it generated from the same during Q3FY23.
In its regulatory filing, the company mentioned that this was driven by steady performance of both the Home & Personal care and Food & Beverages business.
“Despite the delay in onset of winters slightly impacting the Healthcare and Winter portfolio, Dabur's India Business ended the third quarter with a Volume Growth of 6%,” the company said in its earnings statement.
Overall, in Q3FY24, the FMCG major’s Net Profit was up 6.25% YoY to Rs 506.44 crore. In the corresponding period of the last fiscal year, it had amassed Rs 476.65 crore.
In its press release, the conglomerate also mentioned that Dabur's Digestives business ended the quarter with over 15% growth, while the Ayurvedic Ethicals business grew by nearly 7% in Q3.
Moreover, Dabur's Shampoo and Post-Wash category reported an over 11% growth, the Toothpaste business witnessed an 8% jump backed by Toothpaste Volume growth of 5%, the Home Care business reported a 7% growth and the Beverages business returned to the growth trajectory and ended the quarter with a 7% growth.
“Our Foods business, including Badshah, ended the quarter with a 22% growth. With the business fundamentals remaining strong, Dabur posted market share gains across the portfolio, led by a 140bps improvement in Hair Oils market share. Dabur also reported an 184bps gain in Air Freshener market share and 151bps gain in Chyawanprash market share. International Business Dabur's International Business reported a growth of 11.7% in Constant Currency terms. The Nigeria business grew by 52%, while the Turkey business was up 44% and the Egypt business ended with a 43% growth,” the company mentioned in the release.
Sharing his views on the quarterly update, Mohit Malhotra, CEO, Dabur India, said, “We remain intensely focused on our strategies of managing an agile and accountable organization structure with a focus on superior product delivery and constructive disruption to drive sustainable, profitable growth across our portfolio. Moderating inflation coupled with buoyant consumer sentiments and our focussed investment in distribution footprint expansion in rural India helped demand from the hinterland bounce back for Dabur. Rural demand for Dabur grew 200 bps ahead of urban. We have also stepped-up investment behind our brands to drive competitive volume growth, reflected in our higher advertising spends during the quarter.”
“We have been investing in growing our rural footprint, which has expanded by 17,000 villages in the current fiscal from 100,000 to 117,000. We are working towards ending this year with a rural coverage of 1.2 lakh villages. Dabur's rural distribution has, in fact, been the highest in the industry, giving us a distinct advantage and helping drive our rural growth,” he added.
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