India’s leading Science-based Ayurveda major Dabur India Ltd today reported a 6% growth in Consolidated Revenue for the Second Quarter of 2022-23. The Q2 Revenue growth stood at 8.5% on Constant Currency basis.
The Board of Directors of Dabur India Ltd (DIL) met here today to consider the unaudited financial results of the Company for the quarter ended September 30th, 2022.
Dabur continued to demonstrate agility and resilience to deliver steady organic growth in an environment that remains challenging, marked by unprecedented inflation and consequential impact on consumption. Despite the strong headwinds, Dabur reported a Consolidated Revenue of Rs 2,986.5 Crore in the second quarter of 2022-23 financial year, up from Rs 2,817.6 Crore in the same quarter a year ago. Consolidated Revenue for the quarter reported a 3-year CAGR of 10.5%.
Dabur mitigated the impact of unprecedented inflationary pressures through disciplined cost control, operational efficiencies and judicious price increases across key product categories. Dabur ended the second quarter with a Net Profit of Rs 490.1 Crore.
While the challenging economic environment continued to be a concern and impacted the purchasing power, we are seeing green shoots of recovery with the onset of festive season. The impact of inflationary pressures was more pronounced in the Rural markets with demand growth in hinterland lagging Urban markets for the first time in five quarters. However, we are hopeful of rural demand reporting a smart recovery in the coming quarters and we are investing ahead of the curve to ride this demand recovery by expanding our rural footprint by adding nearly 9,000 villages in Q2 of 2022-23 to take our total coverage to over 100,000 villages/’ Dabur India Ltd Chief Executive Officer Mr. Mohit Malhotra said.
Dabur is focused on creating shared value and is ploughing higher investments in capital expenditure, digitalization and sustainability. Dabur has made rapid strides on the ESG front and have set ambitious targets, going forward. Dabur became the first Indian consumer goods company to become 100% Plastic Waste Neutral in 2021-22. “Not one to rest on our past laurels, this year we have targeted to become Plastic Waste Positive, by collecting, processing and recycling 35,000 MT of post-consumer plastic waste pan-lndia. We are committed to creating circularity in the value chain to achieve a positive balance by 2030, besides becoming Water Positive by 2030 and Carbon Neutral by 2040/’ Mr. Malhotra said.
Market Share Gains
Dabur’s brands continued to grow ahead of the market, gaining market shares across 95% of our product portfolio. Dabur reported a 410 bps market share gain in the Juices & Nectars category, while our share of the Digestives category improved 270 bps. Our Chyawanprash market share increased 120 bps and our share of the Shampoo category improved 40 bps. Dabur share of the Hair Oils market increased 20 bps. Innovation continues to be the cornerstone of Dabur’s strategy with new launches contributing to around 4% of Sales.
Dabur’s Foods & Beverages business reported a strong 30% growth. The Beverages business ended the quarter with a jump of over 30% while the Foods business reported a 21% growth.
The Home Care business was up nearly 21%, while the Toothpaste category, riding on strong performance of our flagship Dabur Red Paste, ended the quarter with an over 11% growth. The Shampoo & Post-Wash business ended the quarter up 9%. Dabur’s Ayurvedic OTC business also reported a growth of over 9% during the quarter.
Dabur’s International Business reported a 12.3% jump in Constant Currency terms, led by strong Constant Currency growths in Turkey (86%), Nepal (25%) and Egypt (23%).