Dabur Q2 results: Profit above expectations on demand for household products

Reuters | | Posted by Singh Rahul Sunilkumar

Consumer goods maker Dabur India reported second-quarter profit above market expectations on Thursday, benefiting from rising demand in its household and personal care and healthcare segments.

Dabur owns power brands like Dabur Chyawanprash, Dabur Honey, Dabur Honitus, Dabur PudinHara, and Dabur Lal Tail
Dabur owns power brands like Dabur Chyawanprash, Dabur Honey, Dabur Honitus, Dabur PudinHara, and Dabur Lal Tail

The company’s consolidated net profit rose 5% to 5.15 billion Indian rupees ($61.89 million) for the quarter ended Sept. 30, from 4.9 billion rupees a year earlier.

Analysts, on average, expected a profit of 5.13 billion rupees, according to LSEG data.

Increasing demand for personal care products and stiff competition has prompted major consumer goods makers from Colgate-Palmolive India to Dabur to launch new products, including toothpaste variants.

Revenue from operations climbed 7.3% to 32.04 billion rupees.

In its quarterly update last month, Dabur said its healthcare as well as household and personal care businesses – housing products ranging from Vatika shampoos to its digestive supplement brand Hajmola – posted a high single-digit percentage growth in India.

The household and personal care segment accounted for more than 50% of Dabur India’s sales. India also makes up roughly three-fourths of the company’s topline.

The jury, however, is out on natural healthcare products, with a few medical professionals questioning their safety and efficiency on social media platforms, including X, formerly called Twitter. Dabur subsidiaries were also sued in the U.S. and Canada.

After a lacklustre quarter for the consumer goods industry, analysts expect sales volumes to recover in the second half of fiscal 2024 on expectations of a pickup in farm incomes – which will boost rural demand – and signs of cooling inflation.

Dabur shares rose more than 2% after reporting results, trimming their year-to-date decline to nearly 6%, while the Nifty FMCG index climbed nearly 17% this year.

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