Dabur continued to demonstrate agility and resilience to deliver steady revenue growth despite consumer sentiments dwindling in the face of significant and increasing inflationary headwinds. Dabur reported a consolidated revenue of Rs 2,822-crore in the first quarter of 2022-23 financial year, up from Rs 2,612-crore in the same quarter a year ago. Consolidated revenue for the quarter reported a two-year CAGR of 19.4%.
Dabur mitigated the impact of unprecedented inflationary pressures and supply chain constraints through disciplined cost control and judicious price hikes across categories. Dabur ended the first quarter with a net profit of Rs 440.3-crore, up 0.7% from Rs 437.3-crore a year earlier, with the India FMCG business reporting a 5% volume growth on a high base of 34%.
“Our brands continued to grow significantly ahead of the market, gaining market shares across all key categories. Despite the macro-economic headwinds, we remained focused on rolling our consumer-centric innovation that expanded our total addressable market, and reported strong, sustainable, profitable growth. The demand environment remained stressed in view of the heavy inflation, which saw consumers switch to more affordable smaller packs of branded consumer goods. Both rural and urban demand growth have been at par for Dabur. Rural demand for Dabur was driven by the ahead-of-the-curve investments in expanding our rural footprint to over 91,500 villages in Q1, up from 89,800 villages in March 2022. Urban growth, on the other hand, was driven by new-age channels like Modern Trade, which grew by 42% during the quarter,” Mohit Malhotra, CEO, Dabur India, said.
Innovation continues to be the cornerstone of Dabur’s strategy with new launches contributing to 4.4% of sales. Dabur’s International Business reported an 8% jump in constant currency terms, led by strong growths in Turkey (88%), Sub-Saharan Africa (35%), Nepal (30%) and Egypt (17.5%). The international business reported a two-year CAGR of 12.9%.