Dabur Aug-24

• Dabur India Ltd. is presenting the details of the 49th Annual General Meeting (AGM) of the Company.
• The presentation is available on the company’s website: www.dabur.com.

Dabur Overview

• Dabur is among the top 4 FMCG companies in India.
• 8 out of 10 households consume Dabur products.
• The company has 22 manufacturing facilities.
• Dabur has one of the largest distributions with ~7.9 MN outlets.
• The company has a strong overseas presence with 25% saliency.
• FY24 sales reached INR 12404 Cr.
• FY24 PAT was INR 1843 Cr.
• Dabur has achieved INR 1 Trillion Market Cap.
• Revenue from Operations is up 12.2% in the last 20 years.
• PAT is up 15% in the last 20 years.
• Market Capitalization has increased 92x in the last 20 Years.
• The domestic business accounts for 75% of Dabur's business structure.
• The international business accounts for 25% of Dabur's business structure.
• Dabur has several brands in the INR 1 billion club.
• Dabur is the #1 player for Juices & Nectars, Chyawanprash, Honey, Air Fresheners, MRC, Bleaches, and Hair Oils.
• Dabur is the #2 player for Oral care, BMO, and Glucose.
• Dabur is #1 in Saudi Arabia for Hair Oils and Hair Cream.
• Dabur is #1 in Egypt for Hair Oils and Hair Cream.
• Dabur is #1 in United Arab Emirates for Hair Oils, Hair Cream, and Hair Gel.
• Dabur has 14 manufacturing locations in India.
• Dabur has 8 International manufacturing locations.

FY24 Performance Highlights

• Consolidated Revenue Growth was 7.6%.
• Operating Profit Growth was 11%, with a 60 bps Margin Expansion @ 19.4%.
• PAT Growth was 8% (17% LTL Growth).
• India Volume Growth was 5.5% (including Badshah).
• International CC Growth was 16.4%.
• Gross Margin Expansion was 240 bps.
• Net Cash was INR 64 Bn as of March 31, 2024.
• Net Worth was INR 99 Bn.
• Return on Invested Capital was 38%.
• Home & Personal Care saw 48.6% growth, INR 4,157 Cr, 8.1% YoY growth, and 8.8% CAGR over 4 years.
• Health Care saw 31.4% growth, INR 2,689 Cr, 4.2% YoY growth, and 7.6% CAGR over 4 years.
• Foods & Beverages saw 20% growth, INR 1,711 Cr, flat YoY growth, and 16% CAGR over 4 years.
• International Business grew by 16.4% in CC terms.
• 24% of the International Business FY24 Revenue comes from both the Middle East and Africa.
• 22% of the International Business FY24 Revenue comes from Asia.
• 15% of the International Business FY24 Revenue comes from both Europe and the Americas.
• FY24 Constant Currency Growth in Turkey was 52.3%.
• FY24 Constant Currency Growth in Egypt was 46.6%.

Strategic Pillars

• Strengthening Brand Franchise: Increasing addressable markets across the portfolio and innovation.
• Digital Media: Digital media spends at 30% in FY24, targeting Millennials & GenZ.
• Distribution Expansion & New Age Channels Focus: 7.9Mn Outlet Reach; new age channels now contribute 19% of sales.
• Operating Effectiveness: Improving operational effectiveness for cost optimization and productivity enhancement.
• Sustainability: The ESG Score is 72, with entry into S&P Sustainability YearBook.
• 7.9Mn Outlet Reach; new age channels now contribute 19% of sales.

FY24 | Transition from Power Brands to Power Platforms

• Transitioning power brands to power platforms like Real Fruit Power, Vatika, Dabur Honey, and Dabur Red Paste.
• Introduced Real Nectars - 100% Activ, Real Drinks, Real PET, Real Masala Range, Real Fizzin, Real Milkshakes, Real Peanut Butter, Real Bites in Can, Real Aloe Power , and Real Seeds/Superfoods.
• Transitioning power brands to power platforms like Amla Hair Oil.
• Launched Red Bae Fresh Gel, Sarson Amla, Badam Amla, Brahmi Amla, Amla Aloe Vera, Amla Kids, Premium Shampoo Range (Onion, Rosemary & Olive), and Neelibhringa21 Hair Oil.
• Transitioning power brands to power platforms in the Healthcare sector, including Dabur Honey, Dabur Chyawanprash, and Hajmola.
• Launched Sundarbans Honey, Organic Honey, Breakfast Cereals, Himalayan Honey, DCPK Tablets, Gur Chyawanprash, Kesar Prash, and Khajurprash.
• Launched Variants Chatcola and Limcola, Mr. Aam, Amla Candy, Zeera Drink, and Mukhwas.
• New Category Entry: Expanding total addressable market
• New products include Odomos LVP, Health Juices, Vedic Tea, Pure Cow Ghee, Mustard Oil, Baby Care Range, Real Bites in Can, and Real Lemon Drink.
• FY24 Innovation Contribution at 3.4%.

New Product Developments

• Launched cooling talc products.
• Introduced Cool King Toofani Thanda Tel, which alleviates issues such as listlessness, fatigue, insomnia, headaches, and tension.
• Launched Real Lemon Drink.
• Introduced Red Balm, providing relief in seconds.
• The company released new marketing campaigns.

Digital Marketing

• Spends towards digital have increased to 30% in FY24 (compared to <10% in FY18).
• The company is building a direct connection with consumers through DaburShop.
• The company has established a new-age command center for Social Listening.
• E-commerce business has been built up in the last few years, and contributes ~9% of the business (best in industry).
• There were 364 Digital Campaigns in FY24, leading to 4.45 bn Impressions & 1.45 bn Views.
• Programmatic spends are at 85%+ in FY24 (compared to <40% in FY20).
• The company has partnered with 2,400+ influencers in India (257 MN Reach, 169 MN Views in FY24).
• They won 33 Awards in FY24.

Distribution Expansion & Efficiency Improvement

• Direct Reach: 1.42 Mn (YoY: 22,000 Increase)
• Village Coverage: 1.22 lakhs (YoY: 22,000 Increase)
• Yoddhas: 21,357 (YoY: 9600 Increase)
• Chemist: 2.71 lakhs (YoY: 2,000 Increase)

Cost Optimization & Productivity Improvement

• Cost Optimization: INR 400 cr Cumulative Savings over the last 5 Years.
• Continuous Improvement: 2,210 Kaizens implemented in FY24.
• Manufacturing Investment: INR 456 cr Capex incurred in FY24.
• Optimization across Value Chain for Packaging, Grammage, Alternate Vendor for Procurement, and Network Optimization.

ESG Goals & Achievements

• Among the top FMCG companies in India with a significant improvement in DJSI ESG Score.
• Climate & Bio-Diversity: Coal Free Operations since 2023, and 10,145 Acres under cultivation of medicinal herbs.
• Energy & Water: 51% energy sourced from renewable sources in FY24, with reduced water intensity by 29%.
• Circular Economy: Plastic Waste Positivity achieved by recycling/processing 103% plastic in FY24.
• Diversity: Achieved 13% gender diversity at managerial levels in FY24.
• Operations Outside Protected Bio-diversity zone: 100% of operations are outside protected zones.
• Social Impact: 3.05 Mn beneficiaries in FY24, and 10,877 farmers engaged in herb cultivation.

Q1 FY25 Performance Highlights

• 7% consolidated topline Growth in Q1 (INR 3349 Cr) with CC growth at 9.8%.
• 8.3% consol Operating Profit Growth (INR 655 Cr) with 19.6% Operating Margin for Q1.
• 7.8% consol PAT Growth (INR 500 Cr.) with CC PAT Growth at 9.5%.
• INR 2500+ cr Topline for India Business – Highest ever in a Quarter.
• Volume Growth in India Business is at 5%.
• 18.4% CC Growth in International Business.