The Board of Directors of Dabur India met on 3 August 2021 to consider the company's unaudited financial results for the quarter ended 30 June 2021.
Continued investments behind the power brands and increasing distribution footprint, coupled with a structured and balanced approach to driving cost management, helped Dabur India overcome the challenging context of the Covid-19 second wave and report a strong topline and bottom-line performance in the quarter ended 30 June 2021. Despite the mobility restrictions and disruptions due to localized lockdowns, Dabur India ended Q1 of 2021-22 with a robust 32% surge in consolidated revenue at Rs 2,612 crore, up from Rs 1,980 crore. Consolidated Net Profit for the first quarter reported a 28% growth at Rs 437 crore, up from Rs 342 crore a year earlier.
Dabur's India FMCG Business grew by 35.4%, with an underlying Volume Growth of 34.4% in the first quarter of 2021-22. Mohit Malhotra, chief executive officer, Dabur India, said, "Riding on the strength of its strategic business transformation exercise, Dabur demonstrated renewed agility and resilience in the face of the second wave of Covid-19. We applied learnings from last year on streamlining the Supply Chain to ensure minimal disruption in supplies while firmly focusing on delivering volume-led profitable growth. Our Operating Margin reported a 32.5% growth during the quarter, which marked a ten bps gain despite high inflationary pressures. Our Pre-Tax Profit also grew by a robust 34% during the quarter."
Dabur continued to post strong growth and market share gains across all key verticals like health care, home care, personal care and foods in Q1 2021-22. The eCommerce reported an over 100% growth and today contributes to 8.2% of the India FMG business. "While the operating environment was challenging and the competitive intensity high, we have successfully tapped the growth opportunities to deliver a strong performance during the quarter. We continue to invest ahead of the curve in expanding our rural footprint. We have expanded our rural coverage by 16%, from 60,000 villages at the end of 2020-21 to 69,000 villages in Q1, 2021-21. We plan to further expand it by 33% to 80,000 villages over the next two years," Malhotra added.
He further said, "With the surge in Covid cases in the second wave, ensuring the safety and well-being of people remained our top priority. We have been working towards ensuring that every single member of the Dabur family is vaccinated. We stand with all those affected and will continue to work closely with the Central and State governments, health authorities and the community to support the society and help rebuild the nation."
"Our relentless focus on innovation, a widened product portfolio and a revival in in-home consumption in line with the growing consumer need for health helped Dabur's Food & Beverages business end Q1, 2021-22 with an 80.4% surge. Our Healthcare business reported a strong 30% growth in Q1, with the Ayurvedic OTC business growing by over 52%, Ayurvedic Ethicals business reporting a growth of nearly 51% and the Health Supplements category ending the quarter with a 24.5% growth."
Dabur's International Business continued to move ahead on the growth trajectory with an over 34% jump in constant currency terms. The MENA business grew by nearly 49%, while the Egypt business was up 43%, Namaste by over 40% and the SAARC business posted a growth of 41% during the quarter.