Dabur India reports Q2FY24 performance: Steady growth amid recovery

Dabur India, a leading FMCG company, has provided an overview of its performance and demand trends for the quarter ending September 30, 2023 (Q2FY24). A comprehensive financial report and earnings presentation will be released once approved by the Board of Directors.

Despite gradual recovery, FMCG consumption has shown year-on-year improvement. However, a mild summer and a slightly deficient monsoon impacted performance. The delayed festive season has led to a postponement of off-take related to festivals.

Dabur's consolidated revenue is expected to achieve mid to high single-digit growth in Q2FY24. In the Indian market, the Healthcare and Home & Personal Care (HPC) segments are anticipated to grow in high single digits. The Fruit-Based Beverage (FBB) business may experience a slight decline in revenue due to the mild summer and festival date changes. Badshah Masala has continued its strong performance, expected to post high teen growth.

Dabur's International Business is set for robust performance, with double-digit growth in constant currency, driven by markets like the Middle East, Egypt, and Turkey.

The consolidated business will witness higher gross margin expansion compared to Q1FY24, aided by moderating inflation and cost-saving initiatives. A significant portion of this expansion will be directed towards advertising and promotion (A&P) expenditures. Consequently, operating profit is expected to grow in line with revenue, remaining steady year-on-year.

In conclusion, Dabur expects consumption recovery in both urban and rural Indian markets due to improving macro indicators, increased government expenditure, and positive consumer sentiment.