Dabur Feb-25

Operating Landscape

• Rural areas continued to outperform urban areas for the 4th consecutive quarter.
• There were delayed and contracted winters.
• October and November in India were the warmest in many years.
• Growth in quick commerce has continued, driven by speed and convenience

Q3 FY25 Snapshot

• Consolidated revenue was INR 3,355 Cr, a 3.1% year-over-year growth.
• Consolidated operating profit was INR 682 Cr, a 2.1% year-over-year growth.
• International revenue was INR 847 Cr, an 18.9% year-over-year growth in constant currency.

Q3 FY25 Financial Highlights

• Revenue from operations grew by 3.1% year-over-year (5.6% in constant currency).
• Operating profit grew by 2.1% year-over-year.
• Profit After Tax grew by 1.6% year-over-year.
• International Business Revenue grew by 8.5% in INR terms.
• India FMCG saw a value growth of 1.7% and a volume growth of 1.2%.
• Spending on Advertising & Promotions (A&P) accounted for 6.8% of sales.

Verticals Contribution to Domestic FMCG Business in Q3 FY25

• Home & Personal Care contributed 48.2% with INR 1,110 Cr, a 5.7% year-over-year growth.
• Health Care contributed 37.9% with INR 872 Cr, decreased by (1.3%) year-over-year.
• Foods & Beverages contributed 2.1% with INR 48 Cr, a 30% year-over-year growth.
• Foods & Beverages contributed 11.8% with INR 273 Cr, decreased by (10.3%) year-over-year.

Q3 FY25 International Business Highlights

• Revenue from international markets was INR 847 Crore.
• International sales contributed ~25% to overall sales.
• There was an 18.9% growth in constant currency.
• Growth by region:
  • Namaste 13.2%
  • Turkey 28.2%
  • MENA 17.5%
  • Bangladesh 21.6%
  • SSA 9.8%
  • Egypt 54.6%

Home & Personal Care (HPC) Value Growth in Q3

• Oral Care: 9.1%
  • Red franchise and Meswak products performed well and continue to gain market share.
  • Gels portfolio in the ‘freshness' market segment experienced double-digit growth.
• Hair Care: 2.7%
  • Hair oils grew by 3.1%, gaining 150 basis points in market share.
  • Shampoo outperformed category growth and gained ~20 bps in market share.
• Home Care: 5%
  • Odonil grew in double digits in volume, with Aerosol and Gel products performing well. Market share gain of ~101 bps in air fresheners.
  • Odomos performance was muted due to category slowdown; however, performed better than the category and gained market share by 574 bps in the MRC segment.
  • Sanifresh posted double-digit growth.
• Skin Care: 5.6%
  • Gulabari franchise recorded strong performance with high single-digit growth.

Healthcare Value Growth in Q3

• Health Supplements: -3.4%
  • Unfavorable weather conditions impacted the portfolio.
  • Chyawanprash continues to strengthen its market leadership by market share gains of 139 bps.
• Digestives: 3.9%
  • Hajmola recorded mid-single-digit growth in both candy and tablet formats.
  • Extensions and variants of Hajmola account for more than 15% of the Hajmola franchise.
• OTC & Ethicals: 0.4%
  • Key brands like Honitus, Shilajit, Health juices, and women's health tonics performed well.

Foods & Beverages Value Growth in Q3

• Foods: 30%
  • Growth was sustained with ~30% year-over-year.
  • Key growth categories are Hommade paste, coconut milk, oil & ghee, tomato puree, and Lemoneez.
• Beverages: -10.3%
  • J&N category was impacted in the quarter due to muted festive season demand and price-driven competitive intensity.
  • Real gained ~318 bps market share during the quarter.
  • Several internal initiatives are planned to ramp up growth.
• Badshah: 15.5%
  • Continued its strong growth trajectory with double-digit volume growth and gains in market share.

Q3 FY25 Consolidated P&L (In INR crores)

• Revenue from operations: INR 3,355.2 (3.1% Y-o-Y)
• Material Cost: INR 1,742.9 (4.2% Y-o-Y)
• Employee expense: INR 335.2 (7.9% Y-o-Y)
• Advertisement and publicity: INR 226.6 (-7.3% Y-o-Y)
• Other Expenses: INR 368.7 (2.6% Y-o-Y)
• Operating Profit: INR 681.9 (2.1% Y-o-Y)
  • % of Revenue: 20.3%
• EBITDA (inc Other income): INR 809.9 (1.8% Y-o-Y)
  • % of Revenue: 24.1%
• Net profit for the period/year (after minority): INR 522.4 (1.6% Y-o-Y)
  • % of Revenue: 15.6%

Q3 FY25 Standalone P&L (In INR crores)

• Revenue from operations: INR 2,448.3 (1.4% Y-o-Y)
• Material Cost: INR 1,327.0 (3.7% Y-o-Y)
• Employee expense: INR 206.0 (4.6% Y-o-Y)
• Advertisement and publicity: INR 166.0 (-12.5% Y-o-Y)
• Other Expenses: INR 226.7 (4.8% Y-o-Y)
• Operating Profit: INR 522.5 (-1.7% Y-o-Y)
  • % of Revenue 21.3%
• EBITDA (inc Other income): INR 628 (-0.9% Y-o-Y)
  • % of Revenue: 25.6%
• Net profit for the period: INR 418.1 (-2.3% Y-o-Y)
  • % of Revenue: 17.1%