Dabur Nov-24

• The document is an investor presentation for Dabur India Limited for the quarter ended September 30, 2024, and was released on October 30, 2024

Key Agendas

• The presentation covers these topics:
• Business Environment
• Financial Highlights for Q2 and H1 of FY25
• Business Highlights
• Growth Levers

Operating Landscape

• Moderation in urban demand is being observed
• There is high food inflation, leading to a slowdown in consumption
• Heavy floods and natural calamities have impacted consumption
• Quick commerce is growing at a rapid pace

Q2 FY25 Revenue

• Consolidated revenue: INR 3,029 Crore, down 5.5% Y-o-Y
• India FMCG revenue: INR 2,218 Crore, down 7.6% Y-o-Y, Sec Growth: 2.3%
• International revenue: INR 847 Crore, up 13% Y-o-Y in constant currency
• There was a strategic decision to rationalize inventory in the General Trade channel to enhance channel partner ROI, which impacted primary sales in the India business

Q2 FY25 Financial Highlights

• Revenue from Operations:
• Q2 FY24: 3,204
• Q2 FY25: 3,029
• Operating Profit:
• Q2 FY24: 20.6%, 661
• Q2 FY25: 18.2%, 553
• Profit After Tax:
• Q2 FY24: 16.1%, 515
• Q2 FY25: 14.0%, 425
• Revenue from Operations decreased 5.5% YOY or 3% CC
• Operating Profit decreased 16.4% YOY, which is 18.2% of sales
• Profit After Tax decreased 17.5% YOY
• International Business Revenue grew 3.3% in INR
• Gross Margin experienced an expansion of 102 bps
• A&P spends are 7.4% of Sales, a +60 bps expansion

Verticals Contribution to Domestic FMCG Business in Q2 FY25

• Home & Personal Care: 53.1%
• INR 1,035 Cr
• +6% Sec Growth
• (8.1%) YOY due to inventory rationalization
• +6.9% Q2 5Y CAGR
• Health Care: 30.7%
• INR 598 Cr
• +4%
• (9.8%) YOY due to inventory rationalization
• +6.5%
• Foods & Beverages: 16.3%
• INR 317 Cr
• -11%
• (20.7%) YOY due to inventory rationalization
• +10.1%

Q2 FY25 International Business Highlights

• Revenue from International Markets: INR 847 Crore
• International Business contributed ~28.4% to overall sales.
• International Business saw 13% CC Growth
• Growth by region:
• Namaste: 0.6%
• Turkey: 3.1%
• Middle East: 9.8%
• SAARC: (0.6%)
• SSA: 26.1%
• Egypt: 72.8%

Home & Personal Care (HPC)

• Value growth in Q2:
• Oral Care: 5.3%
• Hair Oils: 3.8%
• Shampoo: 3.2%
• Home Care: 9.1%
• Skin Care: 0.0%
• The company gained market share across all verticals of Home & Personal Care
• Oral care: 45 bps gain
• Hair Oils: 40 bps gain
• Shampoo: 22 bps gain
• MRC: 510 bps gain
• Air Fresheners: 220 bps gain
• Bleaches: 40 bps gain

Increased Media Spendings and Strong Accreditations

• Dabur Red toothpaste is India's first Ayurvedic Toothpaste to get Indian Dental Association (IDA) acceptance seal
• There is engagement with 100,000+ dentists
• There is a campaign with Naga Arjuna for Meswak called "Complete Tooth and Gum Care"

Healthcare

• Value growth in Q2:
• Health Supplements: 2.8%
• Digestives: 6.3%
• OTC & Ethicals: 0.0%
• Chyawanprash is strengthening its market leadership by gaining market share
• The premium "Khajurprash" variant garnered good consumer response
• The Monsoon campaign for Dabur Chyawanprash was well received by consumers
• Dabur gained market share of 60bps in Honey
• Hajmola Jeera Drink is showing strong consumer traction
• Dabur gained market share of 160 bps in the digestives category
• Dabur health juices and the Dabur Baby range have strong growth momentum and grew in double digits
• Honitus grew ahead of the category & gained market share

Foods & Beverages

• Value growth in Q2:
• Foods: 20.6%
• Beverages: -11.6%
• Badshah: 15.0%
• Heavy monsoon and flooding impacted the beverage category
• Gained beverage market share ~240 bps
• Foods continued its growth momentum with Edible Oils and ghee growing by 70%
• Homemade portfolio performed well
• Badshah continued its strong growth trajectory with gains in market share

Digital Transformation

• Key digital initiatives include:
• Map My India to identify coverage gaps and plan distribution expansion
• Outlets - SKU Recommendation-AI-ML to recommend the right product for each outlet via AI
• B2B & Retailer Credit Extension Application to enable urban and rural outlets to place orders via an app
• Dashboard & Data lake to integrate data from multiple functions into a single platform

Premiumization Across Verticals

• Healthcare: Chyawanprash, Kesarprash, Khajurprash, Organic Honey, Honey Sunderbans, Himalayan Shilajit Gold Resin, Himalayan Shilajit Drops
• Home & Personal Care: Odonil air fresheners, Sesa Ayurvedic Hair Oils, Gulabari Shower Gels and Mist
• Foods & Beverage: Real Activ Range, Real Coco Range, Dabur Edible Oils and Ghee

Outdoor Visibility and Activations

• Included DCP Metro Pillar Branding, Odonil Durga Puja, Hajmola at Pandharpur Yatra 2024, Nauchandi Mela, Auto branding and Kanvar Yatra

DJSI Score

• DJSI Score increased to 81, up by 170% in last 2 Years.
• Dabur India Limited has been included in the S&P Sustainability Yearbook 2024 & named Industry Mover

Dividend Update

• Interim Dividend per share (INR): 2.75
• Dividend %: 275%
• Total Dividend (INR Cr): 487.4

Q2 FY25 Consolidated P&L (In INR Crores)

• Revenue from operations: 3,028.6 (Q2 FY25), 3,203.8 (Q2 FY24), -5.5% (Y-o-Y %)
• Material Cost: 1,534.3 (Q2 FY25), 1,655.7 (Q2 FY24), -7.3% (Y-o-Y %)
• Employee expense: 338.8 (Q2 FY25), 315.5 (Q2 FY24), 7.4% (Y-o-Y %)
• Advertisement and publicity: 225.4 (Q2 FY25), 216.5 (Q2 FY24), 4.1% (Y-o-Y %)
• Other Expenses: 377.5 (Q2 FY25), 355.3 (Q2 FY24), 6.3% (Y-o-Y %)
• Operating Profit: 552.5 (Q2 FY25), 660.9 (Q2 FY24), -16.4% (Y-o-Y %)
• % of Revenue: 18.2% (Q2 FY25), 20.6% (Q2 FY24)
• EBITDA (inc Other income): 704.1 (Q2 FY25), 777.3 (Q2 FY24), -9.4% (Y-o-Y %)
• % of Revenue: 23.2% (Q2 FY25), 24.3% (Q2 FY24)
• Net profit for the period/year (after minority): 425.0 (Q2 FY25), 515.1 (Q2 FY24), -17.5% (Y-o-Y %)
• % of Revenue: 14.0% (Q2 FY25), 16.1% (Q2 FY24)

Q2 FY25 Standalone P&L (In INR Crores)

• Revenue from operations: 2,143.6 (Q2 FY25), 2,334.4 (Q2 FY24), -8.2% (Y-o-Y %)
• Material Cost: 1,143.7 (Q2 FY25), 1,241.3 (Q2 FY24), -7.9% (Y-o-Y %)
• Employee expense: 208.1 (Q2 FY25), 201.6 (Q2 FY24), 3.2% (Y-o-Y %)
• Advertisement and publicity: 164.9 (Q2 FY25), 173 (Q2 FY24), -4.7% (Y-o-Y %)
• Other Expenses: 223.8 (Q2 FY25), 210 (Q2 FY24), 6.6% (Y-o-Y %)
• Operating Profit: 403.2 (Q2 FY25), 508.6 (Q2 FY24), -20.7% (Y-o-Y %)
• % of Revenue: 18.8% (Q2 FY25), 21.8% (Q2 FY24)
• EBITDA (inc Other income): 521.7 (Q2 FY25), 611.1 (Q2 FY24), -14.6% (Y-o-Y %)
• % of Revenue: 24.3% (Q2 FY25), 26.2% (Q2 FY24)
• Net profit for the period: 329.2 (Q2 FY25), 420.3 (Q2 FY24), -21.7% (Y-o-Y %)
• % of Revenue: 15.4% (Q2 FY25), 18.0% (Q2 FY24)

H1 FY25 Consolidated P&L (In INR Crores)

• Revenue from operations: 6,377.7 (H1 FY25), 6,334.3 (H1 FY24), 0.7% (Y-o-Y %)
• Material Cost: 3,283.0 (H1 FY25), 3,327.4 (H1 FY24), -1.3% (Y-o-Y %)
• Employee expense: 661.7 (H1 FY25), 612.7 (H1 FY24), 8.0% (Y-o-Y %)
• Advertisement and publicity: 461.3 (H1 FY25), 420.9 (H1 FY24), 9.6% (Y-o-Y %)
• Other Expenses: 764.1 (H1 FY25), 707.7 (H1 FY24), 8.0% (Y-o-Y %)
• Operating Profit: 1,207.6 (H1 FY25), 1,265.6 (H1 FY24), -4.6% (Y-o-Y %)
• % of Revenue: 18.9% (H1 FY25), 20.0% (H1 FY24)
• EBITDA (inc Other income): 1,488.5 (H1 FY25), 1,491.8 (H1 FY24), -0.2% (Y-o-Y %)
• % of Revenue: 23.3% (H1 FY25), 23.6% (H1 FY24)
• Net profit for the period/year (after minority): 925.1 (H1 FY25), 978.9 (H1 FY24), -5.5% (Y-o-Y %)
• % of Revenue: 14.5% (H1 FY25), 15.5% (H1 FY24)

H1 FY25 Standalone P&L (In INR Crores)

• Revenue from operations: 4,657.7 (H1 FY25), 4,681.8 (H1 FY24), -0.5% (Y-o-Y %)
• Material Cost: 2,524.1 (H1 FY25), 2,545.6 (H1 FY24), -0.8% (Y-o-Y %)
• Employee expense: 410.6 (H1 FY25), 391 (H1 FY24), 5.0% (Y-o-Y %)
• Advertisement and publicity: 353.6 (H1 FY25), 340.4 (H1 FY24), 3.9% (Y-o-Y %)
• Other Expenses: 469.3 (H1 FY25), 433.9 (H1 FY24), 8.2% (Y-o-Y %)
• Operating Profit: 900.1 (H1 FY25), 971 (H1 FY24), -7.3% (Y-o-Y %)
• % of Revenue: 19.3% (H1 FY25), 20.7% (H1 FY24)
• EBITDA (inc Other income): 1,128.2 (H1 FY25), 1,172.6 (H1 FY24), -3.8% (Y-o-Y %)
• % of Revenue: 24.2% (H1 FY25), 25.0% (H1 FY24)
• Net profit for the period: 734.6 (H1 FY25), 797.9 (H1 FY24), -7.9% (Y-o-Y %)
• % of Revenue: 15.8% (H1 FY25), 17.0% (H1 FY24)

Cautionary Note

• Certain statements are forward-looking and depend on assumptions, expectations, and other factors
• Actual results may differ, and the company cannot guarantee these results
• The Company may alter or amend the statements based on subsequent events