Local FMCG major Dabur India Ltd on Tuesday announced a 28.42% increase in consolidated net profit to Rs 438.30 crore for the quarter ended June 2021 thanks to higher domestic sales.
The company had recorded a net profit of Rs 341.30 crore in the April-June quarter a year ago, Dabur India said in a BSE filing.
Its operating income increased by 31.89% to Rs 2,611.54 crore in the quarter under review, compared to Rs 1,979.98 crore in the corresponding quarter last year.
“The continued investments behind the Power brands and increasing the distribution footprint, coupled with a structured and balanced approach to cost management, have helped Dabur India Ltd overcome the difficult backdrop of the second wave of COVID and to record solid performances in terms of sales and income during the quarter ended June 30. , 2021, “Dabur India said in a post-compensation statement.
Dabur India CEO Mohit Malhotra said the company has applied last year’s profits to streamlining the supply chain to ensure minimal supply disruption while firmly focusing on profitable growth based on the volume.
“Our operating margin grew 32.5% during the quarter, which represents a gain of 10 basis points despite high inflationary pressures. Our profit before tax also increased by 34% during the quarter. “said Malhotra.
Dabur continued to show strong growth and market share gains across all key verticals such as healthcare, home care, personal care and food in the first quarter of 2021-2022.
During the quarter, Dabur continued to invest in expanding its rural footprint.
“We have extended our rural coverage by 16%, from 60,000 villages at the end of 2020-2021 to 69,000 villages in the first quarter of 2021-2021. We plan to expand it a further 33% to 80,000 villages over the next two years. “Malhotra added.
In addition, its e-commerce sales have grown by more than 100% and now contribute 8.2% of FMCG’s business in India, the statement added.
In the first quarter of fiscal year 2021-2022, Dabur’s revenue from the consumer services segment increased by 25.02% to Rs 2,167.93 crore, from Rs 1,734 crore during the period of the previous year.
“The recovery in discretionary spending continued during the quarter, helping the home and personal care business to grow by more than 26%. The hair care category grew almost 39% in the first quarter, while the home care business grew by over 30%. percent and the oral health sector over 21 percent, ”he said.
Food business income increased 85.22% to Rs 402.48 crore from Rs 217.29 crore during the period last year.
“Our relentless focus on innovation, an expanded product portfolio and a recovery in home consumption in line with the growing health needs of consumers have helped Dabur’s Food & Beverages business to complete the first quarter of 2021. -2022 with an increase of 80.4%, “It said.
However, its retail activity had fallen to Rs 9.17 crore from Rs 2.03 crore during the corresponding period of the previous year.
While revenues from other segments increased 17% to Rs 25.53 crore from Rs 22.11 crore.
While Dabur’s international business grew 34 percent in constant currency terms during the April-June quarter.
“MENA business grew by almost 49%, while business in Egypt grew by 43%, Namaste (US-based personal care company) by over 40% and SAARC business showed growth of 41% in the quarter, “he added.
At the same time, in a separate file, Dabur India said its board of directors at a meeting held on Tuesday also appointed the former interior minister and former comptroller and auditor general of India – Rajiv Mehrishi as additional director, in the category of independent non-executive directors, on the Board of the Company from September 1, 2021, for a period of five years.
Shares of Dabur India Ltd closed up 2.47% at Rs 614 on BSE on Tuesday.