Dabur Q3 net profit up 22% at Rs 211 crore

NEW DELHI: Consumer goods maker Dabur has reported a 22% rise in quarterly profits, helped by growth in its food and home and personal care businesses, and said it may curb advertising spends because of the economic environment.

Net profit for the October-December quarter rose to Rs 211 crore from a year ago, the maker of Vatika hair oils and Real juices said on Tuesday. Consolidated net sales increased 12.3% to Rs 1,630.7 crore.

"Margins have improved despite inflation playing truant and competitive pressures intensifying in some key categories," its chief executive officer, Sunil Duggal, said. "We mitigated the impact of high input costs with calibrated price increases and stringent cost management."

The company said its domestic foods and home and personal care businesses were core growth drivers, while its international business, mainly in the US, under-performed, which it attributed to changes in the management. Demand from rural markets outgrew that of urban areas, it added.

According to Duggal, Dabur invested heavily on its brands in the third quarter, which is expected to drive demand in the next few quarters. Dabur's shampoo business grew 29.6% while its home care segment grew 30%. Its foods business, driven by Real juices and Hommade condiments, grew over 22%.