Dabur Q3 Profit Up 8%, Revenue Rises 7%

31 Jan 2025 , 11:47 AM

Dabur India Ltd reported 4% organic domestic volume growth in Q3 FY25, while total volume growth including Badshah stood at 6%. The net profit for the quarter is up 7.8% YoY to ₹514 crore from ₹476.7 crore in Q3 FY24.

Revenue grew 7% year over year to ₹3,255 crore, as compared with ₹3,043 crore during the same quarter of last fiscal year, with sustained performance of Home & Personal Care and Food & Beverages businesses. Revenue grew 10% in constant currency terms. EBITDA grew 9.4% year over year to ₹667.6 crore, as compared to ₹610 crore in Q3 FY24. EBITDA margin rose 5 bps to 20.5%.

The digestives business grew more than 15% YoY, thus indicating good consumer demand. Ayurvedic Ethicals grew nearly 7%, continuing its steady growth in the health and wellness space.

The Shampoo and Post-Wash business grew over 11% with a help of consumer traction. Toothpaste business grew by 8% on revenue, but the volume growth was at 5% of toothpaste.

The Home Care business and Beverages business both indicated 7% year-over-year growth, reflecting improving demand. Food business, including Badshah, was at 22% YoY, which highlights an excellent pattern of packaged foods.

Dabur’s International business grew in constant currency by 11.7%. Nigeria reported an impressive business growth of 52% Y-o-Y in consolidating Dabur’s international market. The Turkey business also grew 44% on the back of a more robust demand and strong distribution. The Egypt business grew 43% YoY, hence continues to improve its international performance. Dabur expanded its rural footprint to reach 1.17 lakh villages, increasing new villages to 17,000, which by the end of the fiscal will be reaching to 1.2 lakh villages.

Rurally, Dabur demand growth has been 200 basis points ahead of that in urban areas. This was mainly due to the focused expansion in distribution and good product positioning. The company had increased advertising and marketing spends. This reflects the strategy that will drive competitive volume growth.

Moderating inflation, improving consumer sentiment, and expansion in rural distribution are factors that are driving growth, said Mohit Malhotra, CEO. The company had earlier projected mid- to high-single-digit revenue growth for Q3 FY25, taking into account the delay in the impact of winter on healthcare sales and steady growth in the Home & Personal Care segment.