Dabur India shares trade on the rise as food and retail business revenues rise


By CNBCTV18.com STI (Update)

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Dabur India was trading up 0.52% at Rs 577 per share on BSE at the time of writing. The stock has gained 8.92% over the past month while it has fallen 2% over the past year.

Shares of major consumer packaged goods company Dabur India gained nearly one percent on Friday, after the company reported results for the first quarter of fiscal 2023 with a 50 percent increase in consolidated net profit to Rs 441 crore versus Rs 294 crore on a sequential basis. However, net profit remained flat from last year’s Rs 437 crore.

The profit was in line with CNBC-TV18’s poll estimate of Rs 440 crore.

The stock was trading up 0.52% at Rs 577 per share on BSE at the time of writing. It has gained 8.92% over the past month while it has fallen 2% over the past year.

Consolidated revenue was Rs 2,822.43 crore, up 8%, in the June quarter from Rs 2,611.54 crore in the same period last year , driven by strong 180% year-over-year (YoY) growth in its retail business and double-digit growth in the food segment. On a quarterly basis, revenue jumped 12%. The CNBC-TV18 poll had estimated the revenue at Rs 2,808 crore.

Growth in international business was 8% in constant currencies on an annual basis, while business in India grew by 10%.

“Dabur continued to demonstrate agility and resilience to deliver steady revenue growth despite declining consumer sentiment in the face of significant and growing inflationary headwinds,” the company said in a statement.

Total revenue rose to Rs 2,922.98 crore from Rs 2,696 crore in the first quarter of FY22.

EBITDA or earnings before interest, tax, depreciation and amortization – a measure of a company’s overall financial performance – fell 1.5% to Rs 552 crore from the first quarter of last year against CNBC-TV18’s poll estimate of a 2.2% decline.

EBITDA margin was 19.3%, down 180 basis points, compared to an estimate of a decline of 200 basis points.

On a sequential basis, the food sector recorded the strongest growth, up 69%, while retail trade increased by 15%.

The food and beverage vertical, which includes juice, is expected to perform well in the first quarter of FY23 due to a normal summer after two years of the impact of COVID-19, while healthcare home and personal were supported by price increases.

“Our brands continued to grow significantly ahead of the market, gaining market share in all key categories. Despite macroeconomic headwinds, we remained focused on rolling out our consumer-centric innovation that expanded our total addressable market, and are reporting strong, sustainable results. The demand environment remained tight given the strong inflation, which has pushed consumers towards smaller, more affordable packages of branded consumer goods,” said Dabur India CEO Mohit Malhotra.

The company had announced a 21.98% drop in its consolidated net profit to Rs 294.34 crore for the March quarter. Its operating income had risen by 7.74% to Rs 2,517.81 crore from Rs 2,336.79 crore in March 2021.

Total expenses increased by 9% to Rs 2,141.04 crore from Rs 1,969.54 crore YoY.


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