India's leading Science-based Ayurveda major, Dabur India announced a 11% growth in Consolidated Revenue for the First Quarter of 2023-24 to cross the Rs 3,000 Crore mark for the first time in the first quarter, driven by strong double-digit growth in both HPC and HC businesses. The Q1 Revenue growth stands at 13.3% on a Constant Currency basis.
The Board of Directors of Dabur India (DIL) met to consider the company's unaudited financial results for the quarter ending 30 June 2023.
The financial year 2023-24 began on a solid note, reflecting the successful execution of our business and go-to-market strategies to deliver a robust performance during the year's first quarter. Dabur reported an 11% growth in Consolidated Revenue at Rs 3,130 Crore, up from Rs 2,822 Crore a year ago, with an underlying Volume growth of 3% in the India FMCG business.
Dabur's Operating Profit saw a growth of 11.2%. Dabur ended the first quarter of 2023-24 with a 5.3% growth in Consolidated Net Profit at Rs 464 Crore, up from Rs 440.3 Crore a year earlier. Net Profit, excluding Amortization related to the Badshah acquisition, reported an 8% growth.
Dabur India chief executive officer, Mohit Malhotra, said, "We remain committed to our strategy of superior go-to-market execution by enhancing our distribution footprint while focusing on driving growth for our Power Brands and building an agile organization culture to pursue sustainable, balanced growth and value creation. We have initiated several measures to pursue greater efficiency and the gains were ploughed back in the form of higher investments behind our brands to drive demand. Our media spending grew by 30% in the Consolidated business and by 28% in the India business."
He added, "We continue to see strong consumer engagement with our brands, helping them grow significantly ahead of the market and report market share gains across 90% of the portfolio. With the inflation softening, we have seen our rural growths bounce back to high single digits after three quarters. While rural growth lags urban demand, the gap has reduced significantly. We continue to strengthen our long-term competitiveness through investments in developing consumer-centric innovations and technology as we deliver on our purpose of health and well-being for every household."
"Dabur has also made rapid strides on the ESG (Environment, Social & Governance) front. Our business is committed to profitable growth and leaving a deeper imprint on society as a whole. Paving the way toward a more sustainable future, Dabur has targeted to achieve Net Zero in its entire value chain by 2045," Malhotra said.
In 2022-23, Dabur emerged as the first Indian FMCG company to become Plastic Waste Positive, having collected, processed and recycled 35,000 MT of post-consumer plastic waste from all over India. Today, Dabur collects, processes and recycles more plastic waste than it sells in its product packaging in a year.
International business growth
Dabur's International Business reported a 20.6% growth in constant currency terms. The Turkey business reported a 51.2% growth, while the Egypt business grew by 45.7%, Sub-Saharan Africa by 13% and MENA by 10.2%.
Riding on the growing demand for our flagship cough & cold brand Honitus, Dabur's OTC business reported a 24.3% growth during the quarter. The Digestive business was up 14.3%, while the Home Care business posted a 14.5% jump. The Oral Care portfolio grew by 12.7%, while the Hair Care portfolio posted a nearly 10% growth during the quarter. While the food business grew by 35%, the unseasonal rains impacted the beverages portfolio.
Dabur also reported market share gains across 90% of its portfolio. In the Hair Oils category, Dabur gained 200 bps to end the quarter at its highest-ever share of 17.4%. Dabur Red Paste gained 50 bps market share, taking the overall Toothpaste market share to 16.9%. Odomos gained 340 bps, taking our share of the mosquito repellent category to 58.9%. Dabur also reported a 320-bps gain in Chyawanprash market share.