Dabur India reports 25 percent net profit increase in Q1

By

Isabelle Crossley

Published
Jul 31, 2018

Dabur India reported a 24.6 percent increase in consolidated net profit for the first quarter of the current financial year compared to the first quarter of the year before, financial year 2018.

Dabur India saw its net profit total Rs 330 crore ($49.6 million) for the first-quarter of fiscal year 2019, which ended on June 30, the Press Trust of India reported. This is compared to a total of Rs 264.7 crore for the first-quarter of fiscal year 2018, according to a Bombay Stock Exchange filing. The business’ total income for fiscal year 2019's first-quarter totalled Rs 2,154 crore compared to Rs 1,871 crore for fiscal year 2018's first-quarter.

Dabur India Limited’s CEO, Sunil Duggal commented on the results: "Despite an increase in the level of competitive intensity, our brands reported a robust performance during the quarter, growing ahead of the market and delivering strong double-digit growth across all our key categories like health supplements, hair care, oral care, skin care, home care and foods." 

Duggal also reported that the fast moving consumer goods section of the business reported 21 percent growth during the first-quarter. This is the highest ever volume growth reported for the business’ fast moving consumer goods sector.

Dabur India has stated that the results from the first quarter of fiscal year 2019 and fiscal year 2018 are not comparable because the first quarter of fiscal year 2018 was the last quarter under the old value added tax scheme that preceded the introduction of the goods and services tax in July 2017. Not only are tax rates different for many of Dabur India’s products under the GST but also fiscal year 2018's first-quarter results were net of VAT but gross of excise duty. "Accordingly, revenue for the quarters ended 30 June 2018 and 31 March 2018 is not comparable with the previous quarter ended 30 June 2017," said the business.

Dabur India’s expenses totalled Rs 1,752 crore in the first quarter of fiscal year 2019 and consumer care business revenue totalled Rs 1,656 crore compared to Rs 1,425 crore in the first quarter of fiscal year 2018. The business’ food sector saw revenue total Rs 364 crore in the first quarter of fiscal year 2019 compared to Rs 311 crore in the first quarter of fiscal year 2018.

"We have put in place a prudent growth strategy and continued to invest heavily behind our brands to successfully tap the emerging opportunities," Duggal said when asked to comment on future plans for the business.