Dabur net profit surges 16% in Q4

NEW DELHI: FMCG biggie Dabur’s net profit surged by over 16% to Rs 350 crore for the fourth quarter ended March 2024. Q4 consolidated net profit, on a like-to-like basis, reported a 22.7% upsurge to Rs 370 crore, the company said in a statement.

The company also said the chemical ethylene oxide is not used in products in its masala portfolio in the domestic market, while its use in international markets is within prescribed limits.

The comment came in the wake of the recent ban of Indian spice blend market leaders MDH and Everest in Singapore and Hong Kong due to elevated levels of the "carcinogenic pesticide" ethylene oxide.

Following the development, the US Food and Drug Administration (FDA) and Australian food safety authority have put the Indian spice firms under the scanner.

Dabur's masala portfolio consisting of the Badshah brand has not been banned, the management said in a post-earnings concall. Last year, the company acquired Badshah Masala, which operates in ground and blended spices and seasonings.

Further, the company’s consolidated revenue for the quarter registered a 7.3% jump on constant currency basis. Revenue stood at Rs 2,815 crore, up 5% on INR basis from Rs 2,678 crore a year earlier.

Rural growth is on the rebound for us. While the syndicated data also shows that rural demand has overtaken urban demand over the past few months, we have seen demand from the hinterland outpace urban demand by 400 bps in Q4. While Rural reported an 8.2% growth, urban markets grew by 4.2%. This is a result of the several initiatives that we have rolled out to seed demand in the hinterland. We have been investing in expanding our rural footprint, which has expanded by 22,000 villages in the current fiscal from 100,000 to 122,000.', bur India chief executive officer Mohit Malhotra said.

For the full-year 2023-24, consolidated revenue crossed the Rs 12,000 crore mark, a 7.6% jump over the previous year. The consolidated net profit for 2023-24 reported a 7.9% jump to Rs 1,843 crore, from Rs 1,707 crore a year ago.

Strong execution of our power brand strategy, increased premiumisation, and distribution footprint expansion coupled with the benefits of our stringent cost reduction actions helped the company report a steady performance during the fourth quarter and the full year 2023-24.

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