Dabur India Ltd, a homegrown FMCG giant, reported a 2.85 percent drop in consolidated net profit to Rs 490.86 crore for the second quarter that ended September 30.
Dabur India reported a net profit of Rs 505.31 crore in the July-September quarter a year earlier in a regulatory filing.
However, its income from operations increased by 6% to Rs 2,986.49 crore in the current fiscal quarter, compared to Rs 2,817.58 crore in the previous fiscal quarter.
In the most recent September quarter, Dabur India’s total costs grew 8.94% to Rs 2,471.28 crore. Last year, the figure was Rs 2,268.47 crore.
Dabur India said in its earnings report that it “continued to display adaptability and resilience to produce consistent organic growth in a climate that remains tough, characterized by record inflation and the resultant impact on consumption.”
Dabur “mitigated the effect of significant inflationary pressures across major product categories” by “disciplined cost control, operational savings, and sensible pricing hikes,” it noted.
In the most recent September quarter, its total expenses grew by 8.94% to Rs 2,471.28 crore. In the previous year, the figure was Rs 2,268.47 crore.
According to the corporation, its brands have continued to outperform the market, increasing market share across 95% of its product portfolio.
“While the adverse economic situation remained to be a worry and hindered buying power,” said Dabur India CEO Mohit Malhotra, “we are witnessing green shoots of recovery with the commencement of the Christmas season.”
“The impact of inflationary pressures was more acute in rural markets, with demand growth in the hinterland trailing behind demand growth in urban markets for the first time in five quarters.” Dabur’s consolidated sales from the consumer care business sector increased slightly from Rs 2,387.45 crore to Rs 2,410.92 crore in the July-September quarter.
However, earnings from the food industry increased by 34.93% to Rs 499.14 crore. A year earlier, it was Rs 369.90 crore.
Dabur’s retail income increased 43.34 percent to Rs 26.19 crore in Q2 FY22, from Rs 18.27 crore.
Other category revenue increased 18.20% year on year to Rs 40.78 crore from Rs 34.50 crore.
Dabur’s foreign business increased by 12.3% in constant currency terms in the September quarter, “driven by substantial constant currency growths in Turkey (86%), Nepal (25%), and Egypt (23%),” according to the earnings announcement. In the second quarter, its standalone income from operations climbed 6.93% to Rs 2,266.88 crore from Rs 2,119.89 crore.
Dabur India’s consolidated net profit for the first half of the current fiscal year (April-September) fell 1.23 percent to Rs 931.92 crore, down from Rs 943.61 crore in the same time the previous year.
Its operating revenue increased by 7% in the first quarter to Rs 5,808.92 crore. In the first half of FY22, it was Rs 5,429.12 crore.
On the forecast, Malhotra stated that he expects rural demand to recover in the coming quarters.
“We are optimistic about rural demand reporting a smart rebound in the next quarters, and we are investing ahead of the curve to ride this demand recovery by increasing our rural footprint by over 9,000 villages in Q2 2022-23, bringing our total coverage to more than 100,000 villages,” he added.