The company states that while general trade was still under pressure, alternative channels like modern trade, ecommerce and quick commerce continued to post strong growth
Dabur, the fast-moving consumer goods (FMCG) major is expecting the consolidated revenue for the quarter to clock a low single digit growth in the third quarter of the current financial year (Q3FY25) as it suffers the impact of inflationary pressures. Operating profit growth is also projected to be flattish, as informed by the company in its quarterly updates
The company stated that in India business, HPC is expected to grow in mid to high single digits, while the health care is expected to be flattish due to the delayed winter onset. The beverages portfolio is also projected to report muted performance.
However, the culinary business under the brand ‘Hommade’ and ‘Badshah’ continued to perform well during the third quarter and is expected to post strong double digit growth. The company stated that while general trade was still under pressure, alternative channels like modern trade, ecommerce and quick commerce continued to post strong growth. During the quarter, rural consumption for FMCG was resilient and continued to grow faster than urban.
In order to tackle the inflationary pressures, Dabur undertook cost-efficiency measures. It also tried to mitigate the same through tactical price increases. Adding details, the company stated that it is anticipating ‘flattish’ operating profit growth in the third quarter.
“We improving macroeconomic indicators, we expect FMCG growth to revive and sequential improvement in demand going forward. We remain committed to delivering superior performance across all business segments and enhancing market share within our portfolio. Our strategic priorities continue to centre on brand building, sustained profitable growth and long-term value creation,” the company stated.
Giving an update on the overseas business, the company highlighted that the international business is expected to register double-digit growth in constant currency terms, led by a good momentum in MENA region, Egypt, Bangladesh and United States (US) business.
