Dabur Q2 net profit up 23.4% at Rs250 crore
28 October 2013
Home grown pharma and consumer products major Dabur India has posted a 23.4 per cent growth in its net profit for the second quarter of the current financial year at Rs249.74 crore, against a net profit of Rs202.37 crore a year earlier.
Net sales of the company during the July-September 2013-14 quarter stood at Rs 1,749 crore, up 14.9 per cent from Rs1,522.60 crore in the same quarter of the previous fiscal.
Strong demand from the hinterland following the doubling of the company's rural distribution footprint helped Dabur India Ltd sail through a challenging business environment and moderation in consumption expenditure, the company said in a release.
''The rising cost pressures were managed through a mix of judicious price increases and improved buying efficiencies. There are signs of an economic downturn, but Dabur maintained its strong growth momentum and continues to register sales growth ahead of the market in several key categories.
With our rural expansion programme, we have laid the oundation for strong and profitable growth in the future and this initiative started yielding positive results. We are seeing demand from rural India outpacing the urban markets,'' Dabur India Ltd CEO, Sunil Duggal, said in a statement.
The home care business for Dabur, led by the air freshener brand Odonil, continued to move forward on its growth trajectory and ended the quarter with a 25.3 per cent growth.
The foods business also reported another strong quarter with a 22 per cent growth, while the oral care products reported a near 19 per cent growth and the health supplements business grew by around 17 per cent.
The skin care business grew by over 17 per cent while the Shampoo business reported an over 13 per cent growth. The quarter saw Dabur launch a host of new products and variants across geographies, all of which have received good response.
Dabur's international business recorded a growth of 25.8 per cent during the second quarter, led by robust performance in the Middle East and North Africa (MENA) markets and Bangladesh.
"Hair care and toothpastes were the key growth drivers for Dabur in the international markets," Dabur India Ltd group director P D Narang said.
The board of directors of Dabur India Ltd declared an interim dividend of 75 per cent for 2013-14.
"Continuing with our payout policy, the board has declared an interim dividend of Re0.75 per share, aggregating to a total payout of Rs153.02 crore," Dabur India Ltd chairman Anand Burman said.
Dabur India Limited is India's most trusted name and the world's largest Ayurvedic and natural health care company.
Dabur India's FMCG portfolio includes five flagship brands with distinct brand identities - Dabur as the master brand for natural healthcare products, Vatika for premium personal care, Hajmola for digestives, Real for fruit-based beverages, and Fem for fairness bleaches and skin care.