Dabur India, the country’s largest maker of fast-moving consumer goods based on traditional recipes and systems, reported a sequential slowdown in sales for the September quarter due to tight financial conditions.
On a year-on-year basis, the company was still able to report a 4% growth.
The Domestic FMCG business reported an underlying volume growth of 4.8% during the quarter. Excluding food, volumes were up 7.4%.
For the September quarter, revenue from operations fell by about Rs 61 cr to Rs 2,212 cr compared to the June quarter, but were up Rs 87 cr compared to the same quarter last year.
“The domestic business continues to face heavy headwinds in the form of a sustained slowdown in demand, aggravated by the liquidity crunch in the market,” said Dabur India Ltd Chief Executive Officer Mohit Malhotra.
On a year-on-year basis, the Health Supplements business reported a 14.4% growth, led by Dabur Chyawanprash.
The Digestives category reported a 10.2% growth during the quarter, while the Ayurvedic Ethicals business grew by 7.2%.
Dabur’s Shampoo business, on the back of the relaunch of its Vatika Shampoo, grew by 12% during Q2.
The Home Care business sales was up 7%, boosted by strong sales of mosquito repellant brand Odomos, the company said.
The Toothpaste category grew by nearly 5% during the quarter.
“Healthcare continues to be the outperformer for Dabur, which is in line with our strategy of focusing on the Consumer Health categories and investing disproportionately behind our Power Brands, a majority of them being in the Healthcare space,” Malhotra said.
Despite the sequential slowdown in sales, the company was able to report a sequential increase in profits as it scaled back advertisement and publicity efforts.
Total expenses, including cash and non-cash items excluding tax, fell by Rs 92 cr sequentially to Rs 1,792 cr.
As a result, profit before tax and exceptional items increased by Rs 39 cr to Rs 502 cr.
On a year-on-year basis, total expenses increased by Rs 59 cr, compared to the Rs 87 cr increase seen in operating revenue.
As a result, profit before tax and exceptional items was up Rs 28 cr compared to last year.
Consolidated Net Profit grew 7% to end the quarter at Rs 403 crore as against Rs 377 crore a year earlier.
Net profit was impacted by one-time impairment in value of Investments to the tune of Rs 40 crore.