India's leading Science-based Ayurveda major, Dabur India, reported a 12% growth in consolidated revenue for the quarter ended 30 September 2021, with underlying industry-leading volume growth of 10% in the domestic FMCG business. The Board of Directors of Dabur India met to consider the company's unaudited financial results for the quarter ended 30 September 2021.
Dabur India reported its fifth successive quarter of solid double-digit growth despite growing inflationary pressures impacting consumer sentiments. Dabur India ended Q2 of 2021-22 with a consolidated revenue of Rs 2,818 crore, up from Rs 2,516 crore a year earlier. All verticals of the business, from Ayurvedic medicines to hair care, oral care, home care and food & beverages, reported a growth in sales and market share. Operating margin during the quarter marked a 9% growth, while consolidated net profit was up 4.7% at Rs 504 crore as against Rs 482 crore a year earlier.
Dabur's India FMCG business continued to lead the growth and ended the quarter with best-in-class volume growth of 10%, marking the fifth successive quarter of double-digit volume growth.
Dabur India's chief executive officer Mohit Malhotra said, "While the COVID fears have largely receded with the vaccination drive gathering pace and mobility improving, the operating environment remained challenging with unprecedented inflation impacting consumer sentiments in the run-up to the festive season. Last year, our strategic business transformation exercise helped us successfully address the emerging challenges and deliver healthy topline growth despite the tough macroeconomic conditions. We have undertaken calibrated price increases and sharpened our focus on cost control to mitigate the impact. We continue to focus on rolling out consumer-relevant innovations, coupled with heavy investments behind our Power Brands and distribution expansion strategy, to deliver Strong, Sustainable and Profitable growth."
Dabur continues to invest in expanding its rural footprint and strengthening its digital capabilities. The investments bore rich dividends, with rural demand outpacing urban demand during the quarter and eCommerce contribution to domestic Sales reaching 7%. "We are investing ahead of the curve in expanding our rural footprint. We have surpassed our rural coverage target of 80,000 villages 18 months ahead of schedule and are now covering around 83,500 villages," Malhotra added.
Dabur's international business reported a constant currency growth of 13.8% during the second quarter, led by Sub-Saharan Africa (25%), Egypt (17.8%), SAARC (17.6%), Namaste (16.7%) and MENA (12.8%).
Dabur's Food & Beverage business reported a strong 43% growth during the second quarter of 2021-22. The digestives business grew by 22.7%, while the ayurvedic medicines (ethicals) business reported a 12.6% growth. Dabur's hair care category, riding on strong growth for its hair oils and shampoo businesses, ended the quarter with a 26.5% growth, while the home care business reported a 25.3% rise. The toothpaste business continued to move forward on the growth trajectory, riding on strong demand for its flagship Dabur Red Paste which grew by 20%. The toothpaste category ended the quarter with a growth of 15.2%. Dabur reported market share gains across over 95% of its portfolio.
The Board of Directors of Dabur India declared an Interim Dividend of 250% for 2021-22. "Continuing with our payout policy, the Board has declared an Interim Dividend of Rs 2.50 per share, aggregating to a total payout of Rs 441.98 crore," Dabur India vice-chairman Mohit Burman said.