New Delhi, July 27th, 2016: The Board of Directors of Dabur India Ltd (DIL) met today to consider the unaudited financial results of the company for the first quarter ended June 30, 2016.
The business environment continued to remain challenging in the first quarter of 2016-17 with demand further slowing down across key consumer product categories in India and geopolitical disturbances in some overseas markets. In the face of strong macroeconomic headwinds, Dabur India Ltd reported growth in its key businesses and ended Q1 of 2016-17 financial year with a 1.2% growth in Consolidated Net Sales. Consolidated Net Sales for first quarter of 2016-17 stood at Rs 1,923.9 Crore, up from Rs 1,901.7 Crore a year earlier.
Consolidated Net Profit for the first quarter of 2016-17 marked an 11.8% growth to Rs 292.8 Crore, up from Rs 261.8 Crore in the same quarter last year.
“In the first quarter of 2016-17, we had to deal with a tough economic environment characterised by demand slowdown, intensifying competitive pressures and deteriorating geopolitical situation in select geographies like the Middle East and Africa. Despite these challenging conditions, Dabur remains on a steady course and has reported profitable growth. Our domestic FMCG business ended Q1 of 2016-17 with an underlying volume growth of 4.1% even in this tough environment,” Dabur India Ltd Chief Executive Officer Mr. Sunil Duggal said.
“We are pursuing a prudent growth strategy and have taken steps to efficiently manage the emerging risks and challenges as well as protect our turf in the face of intensifying competitive pressures. Despite a sharp fall in growth rates in most consumer products segments, Dabur continues to focus on brand-building while leveraging its strong herbal heritage and positioning as the ‘Science-based Ayurveda’ specialist. This, we feel, will enable us to consolidate our market position as also pave the way for future growth,” Mr. Duggal added.
Dabur is also focusing on aggressive expansion of its manufacturing capability and will be investing Rs 500 Crore within the 2016-17 fiscal to establish new production units as also expand its existing plants in India and abroad.
Category Growths
The Oral Care business – riding on strong demand for both Toothpastes and Toothpowders – posted a near 12% growth during the first quarter of 2016-17. Dabur’s Foods business ended the quarter with an over 4% growth, while the Home Care business reported an over 2% growth.
The International Business reported a near 6% growth, led by Nepal, Egypt and Turkey.