Dabur reported its fifth successive quarter of strong double-digit growth despite growing inflationary pressures impacting consumer sentiments. Dabur ended Q2 of 2021-22 with a consolidated revenue of Rs 2,818-crore, up from Rs 2,516-crore a year earlier. All verticals of the business, from Ayurvedic medicines to hair care, oral care, home care and food and beverages, reported a growth in sales and market share. The operating margin during the quarter marked a 9% growth, while consolidated net profit was up 4.7% at Rs 504-crore as against Rs 482-crore a year earlier.
Dabur’s India FMCG Business continued to lead the growth and ended the quarter with a best-in-class volume growth of 10%, marking the fifth successive quarter of double-digit volume growth.
“While the Covid fears have largely receded with the vaccination drive gathering pace and mobility improving, the operating environment remained challenging with unprecedented inflation impacting consumer sentiments in the run up to the festive season. Our strategic business transformation exercise last year helped us successfully address the emerging challenges and deliver a healthy topline growth despite the tough macroeconomic conditions. We have undertaken calibrated price increases and sharpened our focus on cost control to mitigate the impact. We continue to focus on rolling out consumer-relevant innovations, coupled with heavy investments behind our Power Brands and distribution expansion strategy, to deliver strong, sustainable and profitable growth,” Mohit Malhotra, CEO, Dabur India, said.
Dabur continues to invest in expanding its rural footprint and strengthening its digital capabilities. The investments bore rich dividend with rural demand outpacing urban demand during the quarter, and eCommerce contribution to domestic sales reaching 7%. “We are investing ahead of the curve in expanding our rural footprint. We have, in fact, surpassed our rural coverage target of 80,000 villages 18 months ahead of schedule and are now covering around 83,500 villages,” Malhotra added.
Dabur’s international business reported a constant currency growth of 13.8% during the second quarter, led by Sub-Saharan Africa (25%), Egypt (17.8%), SAARC (17.6%), Namaste (16.7%) and MENA (12.8%).