Dabur’s Q3 Business Update
FMCG giant Dabur Ltd announced on January 3 that rural consumption for FMCG products remained strong and continued to outpace urban consumption in the December quarter.
During Q3, rural consumption for FMCG products showed resilience and continued to grow at a faster rate than urban consumption. While traditional trade channels faced challenges, alternative channels such as modern trade, e-commerce, and quick commerce experienced robust growth. Dabur anticipates that its consolidated revenue will see low single-digit growth in Q3FY25, according to the company’s business update for the quarter.
In the Indian market, the home and personal care (HPC) segment is expected to grow in the mid- to high-single digits, while the Health Care segment is projected to remain flat due to a delayed winter season. Despite a subdued performance in the Beverages portfolio, Dabur’s culinary business, including brands like Hommade and Badshah, performed well in Q3 and is expected to achieve strong double-digit growth.
Dabur’s shares on the NSE closed 2% higher at Rs 524 each on January 3. The company also stated that its International Business is poised to achieve double-digit growth in constant currency terms, driven by strong performance in regions such as MENA, Egypt, Bangladesh, and the US. In Q3, inflationary pressures were observed in certain segments, but Dabur managed to partially offset them through strategic price adjustments and cost-saving measures. The company expects operating profit growth to remain flat in Q3.
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Looking ahead, Dabur foresees an improvement in demand trends. With positive macroeconomic indicators, the company expects a revival in FMCG growth and continued improvement in demand. Dabur remains focused on delivering strong performance across all business segments and enhancing market share within its portfolio. The company’s strategic priorities include brand building, sustainable profitable growth, and long-term value creation.
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Disclaimer: This blog post is for informational purposes only and should not be considered financial advice. Investors should conduct thorough research and consult with a qualified financial advisor before making any investment decisions.