Dabur India Ltd reported a 2.4% growth in Consolidated Net Sales at Rs 2,122.4 Crore for the third quarter despite what it called a challenging business environment and continued softer consumption trend across the industry.
The Company ended the third quarter of 2015-16 with a 12.6% rise in Consolidated Net Profit at Rs 318.5 Crore, up from Rs 282.8 Crore a year earlier. Dabur also reported a 12.3% growth in EBITDA during the quarter.
“The macroeconomic environment continues to be challenging and we faced several headwinds in the form of geo-political disturbances in key geographies in the Middle East and delayed winters in India. The ongoing political unrest in Nepal and blockade of the India-Nepal border severely impacted Dabur’s Foods business. However, we have taken steps to mitigate the impact by ramping up the production of juices in Sri Lanka and India to cater to our demand requirement, and are hopeful of reporting normal growths going forward,” Dabur India Ltd Chief Executive Officer Mr. Sunil Duggal said.
The Toothpaste business for Dabur grew ahead of the industry ending the quarter with a strong 15.5% surge. The Skin Care business reported a near 10% growth during the quarter, while the Home Care business grew by over 8%. The Over-The-Counter (OTC) & Ethicals category ended the third quarter of 2015-16 fiscal with a near 8% growth.
The International Business Division for Dabur reported a 14.8% growth during the third quarter of 2015-16.
“The overall demand environment remained tepid in the third quarter with some key segments showing deceleration while competitive intensity was at a high. We are pursuing a prudent growth strategy and have taken steps to efficiently manage the emerging risks and challenges. Despite a sharp fall in growth rates in most consumer products segments, Dabur continues to focus on brand-building and market expansion programmes that will pave the ground for future growth,” Dabur India Ltd Chief Executive Officer Mr. Sunil Duggal said.
The growth in Dabur’s International Business was led by Bangladesh at over 15%, Turkey at 14% and GCC at 10%. The US-based Namaste Laboratories posted strong double-digit growth with both the US and non-US businesses performing well. “Going forward, we will continue to pursue an aggressive growth strategy,” Mr. Duggal added.