Dabur India Ltd , a leading player in the Ayurvedic healthcare and Fast-Moving Consumer Goods (FMCG) sector, has outlined its strategy for sustainable growth during its 50th Annual General Meeting (AGM). The company is focusing on innovation, premium products, and rural distribution to solidify its position in the market.

Expanding Reach and Market Presence

Dabur has significantly expanded its distribution network, reaching 8.4 million outlets across India, a growth of 0.5 million outlets from the previous year. This expansion includes 1.5 million rural stores, underlining the company's commitment to penetrating deeper into rural markets. The company's products now reach 80% of Indian households, showcasing its extensive market presence.

Financial Performance

For the fiscal year, Dabur reported consolidated sales of Rs 12,563.00 crore, with a profit after tax of Rs 1,768.00 crore. The company maintained a strong operating profit margin of 18.40% and a net profit margin of 14.00%. Notably, Dabur's international business grew by 17.20% in constant currency terms, contributing 26.00% to the overall sales.

Strategic Focus Areas

Innovation and Premiumization

Dabur is emphasizing product innovation, with new product development contributing 2.30% to sales. The company has introduced premium variants across various product categories, including Chyawanprash, honey, and personal care products.

Brand Building

The company has increased its advertising and promotion spend by 1.3 times over the last five years, reaching Rs 864.60 crore. Dabur is leveraging digital platforms, partnering with over 3,000 influencers and increasing digital spends to 45.00% of its media budget.

Operational Excellence

Dabur achieved cost savings of Rs 100.00 crore through various optimization initiatives and implemented 2,700 Kaizen projects for continuous improvement.

Sustainability

The company has made significant strides in its sustainability efforts, achieving 61.00% of its total energy consumption from renewable sources, reducing water usage by 30.00%, and maintaining plastic waste positivity.

Market Leadership

Dabur has strengthened its market position across various categories. The company holds the top position in juices and nectars, Chyawanprash, honey, and air fresheners in the domestic market. Internationally, Dabur leads in several personal care categories in key markets such as Saudi Arabia, Egypt, and the United Arab Emirates.

Future Outlook

Mohit Malhotra, CEO of Dabur India, presented the company's vision for the future, emphasizing the potential for growth in both domestic and international markets. The company aims to maintain its leadership in Ayurvedic healthcare while expanding its operations globally.

Dabur's focus on innovation, premium products, and rural expansion, coupled with its strong financial performance and sustainability initiatives, positions the company well for continued growth in the competitive FMCG sector. As Dabur celebrates its 50th year, it looks set to build on its rich heritage while adapting to changing consumer preferences and market dynamics.

Dabur India Limited , a leading Indian consumer goods company, has reported a consolidated revenue growth of 1.7% for the first quarter. The company's performance was significantly impacted by unseasonal rainfall and a shortened summer season, which affected its seasonal portfolio, particularly beverages and glucose segments.

Growth Excluding Seasonal Portfolio

When excluding the impact of the seasonal portfolio, Dabur's growth reached a more robust 7%. The company's India business revenue grew by 4.3%, excluding the seasonal portfolio, while the international business demonstrated strong performance with 13.7% growth in constant currency terms.

Segment Performance

Home Care and Personal Care

The Home Care portfolio delivered an impressive 10% growth, with Odonil achieving the #1 position in the air freshener category, commanding a 44% volume market share. The Toothpaste portfolio grew by 7.3%, led by the Red franchise, while the Hair Oil segment achieved its highest-ever market share of 19%.

Healthcare Portfolio

The Healthcare portfolio saw mixed performance:

• Chyawanprash grew by 28%
• Honey grew by 11%
• Glucose declined by 30% due to weather impact

International Business

Dabur's international business remained resilient, delivering a robust double-digit growth of 13.7% in constant currency and 12.7% in INR terms.

Market Share Gains

Dabur reported market share gains across 95% of its portfolio, indicating strong brand performance despite challenging conditions.

Rural vs Urban Performance

Rural markets continued to outperform urban markets for the fifth consecutive quarter, showcasing the company's strong presence in rural areas.

Margin Management

Despite facing 7% commodity inflation, Dabur maintained its operating margins through a combination of price increases (3-4%) and cost-saving initiatives.

Outlook

Mohit Malhotra, CEO of Dabur India Limited, expressed optimism about the coming quarter, stating, "We expect double-digit growth in the coming quarter due to favorable base effect and project high single-digit growth for the full year."

Investor Conference Call

In a recent investor conference call, Dabur's management discussed the company's performance and strategies:

• The company is focusing on premiumization and expansion into new age offerings in both Hair Oils and shampoos.
• Dabur is investing in brand building and distribution expansion.
• The international business is on a strong trajectory with currency depreciation now lapping over in most geographies.
• The company expects sequential recovery in demand due to softening food inflation, favorable monsoon, and sustained momentum in rural areas.

Dabur India continues to navigate challenging market conditions while maintaining its focus on growth and market leadership across various product categories.