The company expects the Q4 operating profit margin (OPM) to contract by around 150 to 175 bps on a year-on-year (YoY) basis
On account of delayed and truncated winters and a slowdown in urban markets, Dabur, a fast-moving consumer goods (FMCG) major, has stated that the India FMCG business is likely to decline in mid-single digits. As a result, Dabur’s consolidated revenue is expected to be flattish during the fourth quarter of the Financial Year 2025 (Q4FY25).
Sharing the update for Q4FY25, the company highlighted that due to the impact of inflation, coupled with operating deleverage, it expects the Q4 operating profit margin (OPM) to contract by around 150 to 175 basis points on a year-on-year (YoY) basis. In India, the foods business comprising ‘Hommade’ and ‘Badshah’ continued to perform well and is expected to post double-digit growth, the company said.
“We remain committed to driving profitable growth despite the current headwinds in demand. Our internal efforts, such as investing in brand building, enhancing go-to-market strategies and increasing operating efficiencies, will enable us to achieve this objective. Furthermore, we anticipate that the incentives outlined in the recent Union Budget will stimulate consumption and facilitate a recovery in the FMCG sector which Dabur is well placed to capitalise on,” the company stated in an exchange filing.
As far as the key international markets are concerned, the company stated that the Mena region, Egypt and Bangladesh are likely to post strong performance, leading to healthy double-digit growth in constant currency terms for the international business.
Rural markets continue to be resilient and grew ahead of urban markets during the recently concluded quarter. As far as the channels are concerned, while general trade continued to be under pressure, organised trade, including modern trade, ecommerce and quick commerce, maintained their growth momentum, as per the official statement. The company added that FMCG volume trends continued to be subdued during the quarter.
