Dabur India expects low single-digit revenue growth in Q3

Dabur India on Friday said it expects to garner “low single-digit growth” in terms of consolidated revenue during the December quarter and a “flattish” operating profit growth. The company also said it continued to see the impact of inflationary pressures in some segments during the December quarter. At the same time it expects FMCG demand to revive in the coming months.

The FMCG major said that rural consumption for FMCG was resilient during the quarter under review and continued to grow at a faster clip than urban consumption. It noted that modern trade, e-commerce and quick commerce channels continued to post strong growth but the general trade channel was still under pressure.

“Dabur’s consolidated revenue is expected to register low single digit growth during Q3 FY25.We anticipate flattish operating profit growth (in Q3).,” Dabur India stated in its quarterly preview for December quarter in a regulatory filing.

In the Indian market, the company expects the home and personal care segment to post growth of “mid-to-high-single digits”. However, due to the delayed onset of winter, it expects health care segment growth to be “flattish”.

Even the beverages portfolio is expected to report muted performance, it added.

However, the company’s food business is expected to post strong double-digit growth on the back of strong performance of its brands ‘Hommade’ and ‘Badshah’ during Q3.

“ The International Business is expected to register double-digit growth in constant currency terms, led by good momentum in the MENA region, Egypt, Bangladesh and US business.”

Dabur India said it had to take tactical price hikes to partially mitigate inflationary pressures that it witnessed in some segments during the December quarter. The company also leveraged on cost-efficiency initiatives to manage costs during this period.

“With improving macroeconomic indicators, we expect FMCG growth to revive and sequential improvement in demand going forward. We remain committed to delivering superior performance across all business segments and enhancing market share within our portfolio,” the company noted in its regulatory filing. It added that its strategic priorities continue to be focused on brand building, sustained profitable growth, and long-term value creation.

Source : Business Standard