Published
Jul 19, 2019
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Dabur sees net profits rise by over 10 percent in first quarter

Published
Jul 19, 2019

The fast moving consumer goods business Dabur reported a 10.3 percent rise in consolidated net profit reaching Rs 363 crore for the first quarter of the 2020 financial year due in part to rural growth.

Dabur India saw profits rise in the first quarter of the current 2020 financial year - Dabur- Facebook


Dabur, which retails beauty and personal care products among other FMCG categories, saw its consolidated net profit rise from Rs 329 crore in the first quarter of the 2019 financial year to Rs 363 crore in the first quarter of the current financial year. The business also saw its consolidated revenue increase by 9.3 percent in the same time period to reach Rs 2,273 crore compared to Rs 2,081 crore a year ago and the business reported a volume growth of 9.6 percent during the quarter.

“While the macroeconomic environment continues to be challenging with an overall demand slowdown in India and competitive intensity remaining high, we have executed well on our distribution expansion strategy in rural India which has resulted in consistent improvement of our performance,” said Dabur India’s CEO Mohit Malhotra, as reported by ET Retail.

“Our rural footprint has been expanded to over 48,000 villages now, up from 44,000 villages in March 2019. For Dabur, rural demand is growing ahead of urban. With this, we have built a strong foundation for sustainable profitable growth. We have efficiently managed the risks and challenges to post an 18.5 percent growth in our Operating Margin for the quarter.”  

Malhotra also credited the business’ increased focus on the consumer health space and larger investments in its “Power Brands” for its increased profit. “We will continue to invest behind our brands, accelerate on product innovation efforts, and enhance our capabilities for sustainable future growth,” said Malhotra.

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