Dabur posts net profit of 17% in quarter, warns of contraction of demand
Dabur announced that consolidated revenues were up 21% in the quarter at Rs 1,461.9 crore, while its consolidated net profit went up 17%.
By Ratna Bhushan, ET Bureau | Updated:
NEW DELHI: The consumer goods industry could see a contraction of demand on the back of a weak monsoon this year, Dabur CEO Sunil Duggal said, soon after the maker of Vatika shampoo and Real juices announced its April-June quarter results on Monday.
Dabur announced that consolidated revenues were up 21% in the quarter at Rs 1,461.9 crore, while its consolidated net profit went up 17%. The company attributed the growth to high-performing categories like health supplements, shampoos and food.
"Despite signs of an economic downturn and increased competitive intensity, we accelerated volume growth ahead of the market in key categories. We have laid the foundation for strong and profitable growth in the future with an array of initiatives that includes doubling our distribution footprint in rural India. These initiatives have already started to yield positive results," Duggal said.
The foods business grew 34.5%, while shampoo grew 23% growth. Home care closed the quarter with 14.4% growth, while its skin-care business grew 13.3% growth, the company said.
Consumer goods companies are gearing up for a series of contingency plans, which include putting off price hikes and increasing focus on consumer promotions and discounting, to counter a potentially weak monsoon.
The growth in overseas markets was driven by GCC, Nigeria and Egypt. "In a challenging business environment, we are managing our business to ensure that we remain competitive and cost efficient," said Dabur group director P. D. Narang.
Dabur announced that consolidated revenues were up 21% in the quarter at Rs 1,461.9 crore, while its consolidated net profit went up 17%. The company attributed the growth to high-performing categories like health supplements, shampoos and food.
"Despite signs of an economic downturn and increased competitive intensity, we accelerated volume growth ahead of the market in key categories. We have laid the foundation for strong and profitable growth in the future with an array of initiatives that includes doubling our distribution footprint in rural India. These initiatives have already started to yield positive results," Duggal said.
The foods business grew 34.5%, while shampoo grew 23% growth. Home care closed the quarter with 14.4% growth, while its skin-care business grew 13.3% growth, the company said.
Consumer goods companies are gearing up for a series of contingency plans, which include putting off price hikes and increasing focus on consumer promotions and discounting, to counter a potentially weak monsoon.
The growth in overseas markets was driven by GCC, Nigeria and Egypt. "In a challenging business environment, we are managing our business to ensure that we remain competitive and cost efficient," said Dabur group director P. D. Narang.
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