Dabur Q2 result update!
Last updated: 04 Nov, 2020 | 06:53 am
- Net profit rises: Dabur’s consolidated Net Profit for Q2FY21 rose 19.5% to ₹481.7 crore on a yearly basis beating street’s consensus estimate of ₹441.7 crore. Consolidated revenue was up 13.7% to ₹2,516 Crore. The company said that this is the highest revenue growth reported by the Company in the last couple of years.
- Strong volume growth: Dabur's FMCG Volume Growth stood at 16.8% during the quarter. Consolidated Operating Margin saw an improvement of 50 bps, reaching 22.6% in Q2 FY21
- Robust growth in the Healthcare segment: Healthcare segment grew at a whopping 49.3% yearly with revenue for this segment at ₹714 crore. Home & Personal care business also grew by 9.1%, while the domestic Foods Business saw some recovery, but remains impacted by the continued closure of Hotels, Restaurants and Institutional businesses.Within the Healthcare segment, immunity-boosting products continue to be the outperformers for Dabur. This is also in line with the company’s strategy of focusing on the Consumer Health categories. The Health Supplements business grew 70.8% during this quarter. The Ayurvedic OTC range grew by over 56% while the Ayurvedic Ethicals business ended Q2 with an over 26% growth. Dabur's Oral Care Sales was up over 24% with its flagship Dabur Red Paste reporting strong double-digit growth. The Shampoo business, on the back of strong demand for Vatika Shampoo, grew by nearly 18% in Q2.
- E-commerce: The pandemic strengthened Dabur’s online presence with the e-commerce business grew by 200% in Q2, now contributing 6% to the company’s overall revenue as against 2.1% a year ago.
- Dividend: The company has declared an interim dividend of ₹1.75 per share aggregating to ₹309.30 crores. The Company has fixed 12 November 2020 as the record date for the payment of interim dividend.
The pandemic has changed consumption patterns across masses, and this has majorly benefitted healthcare and hygiene products. Raising concerns for immunity boosting have led to skyrocketing sales of products in this segment. As the pandemic unveiled, Dabur reported record historical growth in some of its products. With the company’s continuous focus on the healthcare segment, growing market share in various product segments, new product launches and strong brand recognition, Dabur is set to be one of the major beneficiaries of the post-Covid consumption patterns.
Dabur’s CEO Mr. Mohit Malhotra said that “Dabur continued to move forward on its distribution expansion strategy in the hinterland, rural demand grew ahead of urban. Favourable Monsoon and enhanced stimulus announced by the Government as part of its overall thrust on boosting the rural economy is expected to further drive rural demand in the coming months.”