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Malhotra also said that the urban markets have bottomed out and that the outlook will only improve going forward.
Dabur is also targeting low to mid-single-digit volume growth going forward, Malhotra said.
Dabur reported December quarter results on Thursday, January 30, where its net profit of ₹516 crore was in-line with expectations. On a year-on-year basis, the company’s profit increased by 2%.
Revenue for the quarter increased by 3.1% from last year to ₹3,353.3 crore. The number was also higher than expectations of ₹3,338 crore.
Dabur’s Earnings Before Interest, Tax, Depreciation and Amortisation (EBITDA) increased by 2.1% year-on-year to ₹681.9 crore, which also met expectations of ₹668 crore, while margins stood at 20.3% from 20.5% last year and was also marginally better than the CNBC-TV8 poll of 20%.
For the quarter, Dabur’s domestic volume growth stood at 1.2%, which was at the lower end of the CNBC-TV18 poll estimate of 1% to 2% growth.
Malhorta also spoke of Dabur’s e-commerce business, stating that 50% of that business comes from quick commerce. E-commerce currently comprises of 8% to 10% of Dabur’s overall business.
Dabur’s Home and Personal Care business saw volume growth of 6%, while the Badshah business grew by 15% from last year. The beverage and healthcare business was impacted by seasonality during the quarter.
Shares of Dabur ended 4.2% higher post the earnings announcement at ₹539.5. The stock is down 20% from its peak after Thursday’s close.
