Dabur Q3 update: Revenue to see mid-to-high single digit growth; co sees improvement in demand trends
Dabur's consolidated revenue is expected to register mid-to-high single-digit growth during Q3FY24.
In the preceding second quarter, its revenue from operations increased 7% year-on-year (YoY) to Rs 3,204 crore.
With pricing growth remaining subdued due to price increases in the base year, the growth during the third quarter is largely volume-led.
Early signs of revival in consumption are visible with improving trends in volumes, the company said in a filing.
In the India business, the food and beverages segment is expected to grow in the high-single digits and HPC is expected to record growth in the mid-single digits.
Because of the delay in the onset of the winter season, the company anticipates the health care business to grow in low to mid-single digit in the December quarter.
Badshah Masala continued to perform well and is expected to post strong volume-led growth in the high twenties.
The company's international business is expected to register double-digit growth in constant currency terms, led by good momentum in the MENA region.
Gross margins are likely to expand, led by moderating inflation and cost-saving initiatives, the company said, adding that a significant portion of gross margin expansion will be channeled into enhancing advertising and promotion (A&P) spending.
Consequently, operating profit is expected to grow slightly ahead of the revenue and post an improvement in year-on-year operating margins.
In summary, Dabur expects the recovery of consumption in both urban and rural markets in India due to improving macro indicators, increase in government expenditure and positive consumer sentiment.
«We remain committed to driving ahead of the category, performance of our business segments and
