Dabur Anticipates Mid-Single Digit Growth in Q2 Amid GST Rate Cuts

Dabur India , a leading FMCG company, has released its quarterly update for Q2, revealing insights into its performance and market trends. The company expects a temporary sales slowdown attributed to recent GST rate reductions but remains optimistic about future growth prospects.

Key Highlights

Dabur projects mid-single digit growth in consolidated revenue for Q2
Operating profit expected to grow almost in line with revenue
Anticipates accelerated revenue growth in upcoming quarters
Solid growth projected in oral care, healthcare, and culinary segments
International business facing challenges, particularly in Nepal

Impact of GST Rate Cuts

The recent GST reforms have significantly impacted Dabur's business landscape:

Category	Previous GST Rate	New GST Rate	% of India Business
Key Categories*	12%/18%	5%	~60%
Total Portfolio	-	5%	~85%

*Includes Oral care, Juices, Hair oils, Shampoo, Digestives, OTC, Branded Ethicals, and Culinary

Dabur has committed to passing on the benefits of reduced GST rates to consumers, which is expected to boost consumption across categories and strengthen demand in both urban and rural markets.

Performance Across Segments

Despite the temporary disruption caused by GST rate cuts, Dabur has observed resilience in various product categories:

Oral Care: Expected to deliver double-digit growth in both Red Toothpaste and Meswak
Skin Care: Projected high-single digit growth led by Gulabari and Oxy franchise
Hair Care: Shampoos anticipated to register high-single digit growth, while Hair Oils may see mid-single digit growth
Healthcare: Key brands like Dabur Honey, Honitus, Hajmola franchise, and Health Juices likely to register double-digit growth
F&B: Culinary business expected to record double-digit growth, with strong performance in Oils & Fats
Beverages: Premium 'Activ' range projected to report robust growth of 30%+, despite overall portfolio impact due to higher-than-expected rainfall and floods in July and August

Channel Performance and International Business

E-commerce (including Quick commerce) expected to grow in double digits
Modern Trade maintained its growth momentum
International business projected to post mid-single digit growth in INR and CC terms
Key international markets like MENA, Turkey, Namaste, and Bangladesh performing well, while Nepal faces challenges due to political unrest

Looking Ahead

Dabur anticipates that supportive macroeconomic conditions and the recently announced GST rate cuts will strengthen consumption, leading to regained momentum in revenue growth in the coming quarters. The company's focus on passing on GST benefits to consumers and its strong market presence position it well for future growth.

As Dabur navigates through these changes, investors and market watchers will be keen to see how the company's strategies unfold in the evolving FMCG landscape.

1 Day	5 Days	1 Month	6 Months	1 Year	5 Years
+0.73%	-0.85%	+2.88%	+4.84%	-5.37%	-2.44%

Dabur India Limited, a leading Indian consumer goods company, has achieved a significant milestone in its sustainability journey. The company has been awarded the prestigious Golden Peacock Award for Sustainability by the Institute of Directors (IOD), India.

Award Details and Significance

The Golden Peacock Award for Sustainability is a highly respected recognition in the corporate world, acknowledging companies that demonstrate exceptional commitment to sustainable and responsible business practices. Dabur India's win underscores its ongoing efforts and achievements in this critical area.

Distinguished Jury

The award was conferred by a distinguished jury chaired by Justice Uday U. Lalit, former Chief Justice of India. Other eminent jury members included:

Justice Ritu Raj Awasthi, Judicial Member of the Lokpal of India, former Chairperson of the Law Commission of India, and former Chief Justice of the Karnataka High Court
Prof. (Judge) Mervyn E. King SC, Chairman of the King Committee on Corporate Governance, Chair Emeritus of IIRC & GRI, and former Judge of the Supreme Court of South Africa

Impact on Dabur's Global Positioning

This prestigious accolade is expected to strengthen Dabur India's global positioning in the realm of sustainability. It serves as a testament to the company's continued commitment to responsible business practices and its efforts to integrate sustainability into its core operations.

Corporate Governance Update

In related news, Dabur India has also announced key corporate governance updates:

Board Meeting: A meeting of the Board of Directors is scheduled to consider and approve the unaudited financial results for the quarter and half-year. The board will also consider the declaration of an interim dividend on the company's equity shares.
Trading Window Closure: In compliance with SEBI regulations and the company's Code of Conduct for Prevention of Insider Trading, Dabur India has announced the closure of its trading window.

These announcements reflect Dabur India's commitment to transparency and adherence to regulatory requirements, further reinforcing its position as a responsible corporate entity.

The Golden Peacock Award for Sustainability marks a significant achievement for Dabur India, highlighting its dedication to sustainable practices and setting a benchmark for the consumer goods industry in India and globally.