India FMCG business Volume Growth Up 4.5%
New Delhi, October 26, 2016: The Board of Directors of Dabur India Ltd (DIL) met here today to consider the audited financial results of the company for the quarter ended September 30th, 2016.
Dabur India Ltd braved strong headwinds in the form of a persistent listless demand environment in key consumer products categories and geopolitical disturbances in the overseas markets during the Second Quarter of 2016-17 financial year. However, its continued focus on leveraging the Science-based Ayurveda heritage, coupled with commodity tailwinds, helped Dabur India Ltd end Q2 of 2016-17 with a 1% growth in Consolidated Revenue at Rs 1,975.7 Crore. Consolidated Revenue for Q2 of 2015-16 stood at Rs 1,955.3 Crore. Consolidated Net Profit for the Second Quarter of 2016-17 fiscal marked a 5% growth at Rs 357.3 Crore, up from Rs 340.2 Crore a year earlier.
Dabur India Ltd Standalone (India business) Revenue marked a 2.3% growth during Q2 at Rs 1,348.1 Crore as against Rs 1,318.4 Crore a year earlier. Dabur India Ltd Standalone Net Profit for Q2 marked a 17.7% growth during the quarter at Rs 268.7 Crore, up from Rs 228.20 Crore a year earlier.
“The overall business environment continued to be challenging with consumer demand remaining slack in India while overseas geographies like the Middle East and Africa hit by worsening geopolitical situation. We continue to invest behind our brands and are confident of our ability to report profitable growth, going forward. Even in a tough environment, we have navigated the external business environment well and our domestic FMCG business ended Q2 of 2016-17 with a volume growth of 4.5%,” Dabur India Ltd Chief Executive Officer Mr. Sunil Duggal said.
“The medium to long-term prospects, particularly for India, remain robust and we are optimistic that domestic consumer demand would gain pace in months to come, riding on good Monsoons and a slew of government initiatives announced recently. We are confident that our focused strategy and positioning as the ‘Science-based Ayurveda’ specialist will pave the way for future growth. We have lined up a flurry of many exciting initiatives and are committed to aggressively launch new products leveraging on our Ayurvedic heritage and cutting edge science,” Mr. Duggal added.
The second quarter saw Dabur launch a host of new products and variants across geographies, all of which have received good response. During the quarter, Dabur announced its foray into the fizzy drinks market with the launch a range of fruit juice-based aerated drinks under the brand Réal VOLO. Dabur also expanded its presence in the professional skin care market with the launch of two specialized salon products – OXYLIFE Tan Clear and OXYLIFE Pro Youth Pure Oxygen Facial. Dabur also extended its Honitus brand with the launch of Dabur Honitus Hot Sip, a readymade Ayurvedic ‘Kadha’ especially designed to help fight cough & cold.
The Home Care business for Dabur, led by strong demand for the mosquito repellent brand Odomos and air freshener brand Odonil, continued to move forward on its strong growth trajectory and ended the quarter with a near 20% growth. The Foods business reported an over 15% growth during the quarter. The Skin Care business ended the quarter with a near 7% growth.
The Board of Directors of Dabur India Ltd declared an interim dividend of 125% for 2016-17. “Continuing with our payout policy, the Board has declared an interim dividend of Re 1.25 per share, aggregating to a total payout of Rs 265.01 Crore, including tax” Dabur India Ltd Chairman Dr. Anand Burman said.
About Dabur India Ltd
Dabur India Limited is one of India’s leading FMCG Companies. Building on a legacy of quality and experience for 132 years, Dabur is today India’s most trusted name and the world’s largest Ayurvedic and Natural Health Care Company. Dabur India's FMCG portfolio today 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, Réal for fruit-based beverages, and Fem for fairness bleaches & skin care.