Dabur posts flat profit, announces dividend of 250 pc for 2022-23

Leading FMCG Dabur India on Wednesday reported a flat net profit at Rs 490.86 crore for the quarter ending September against Rs 505 crore in the year-ago period. The company also declared an interim dividend of 250 per cent for 2022-23. The dividend amount is Rs2.5 per share having a face value of Re 1 a piece.

The fast-moving consumer goods (FMCG) company also said its revenue grew 6 per cent during the reviewed quarter. The quarterly revenue growth stood at 8.5 per cent on a constant currency basis.

Despite the strong headwinds, Dabur reported a consolidated revenue of Rs 2,986.5 crore in the second quarter of 2022-23 financial year, up from Rs 2,817.6 crore in the same quarter a year ago.

On its flat profit, Dabur said it mitigated the impact of unprecedented inflationary pressures through disciplined cost control, operational efficiencies and judicious price increases across key product categories.

Dabur India CEO Mohit Malhotra said, "While the challenging economic environment continued to be a concern and impacted the purchasing power, we are seeing green shoots of recovery with the onset of festive season. The impact of inflationary pressures was more pronounced in the Rural markets with demand growth in hinterland lagging Urban markets for the first time in five quarters,"

"However, we are hopeful of rural demand reporting a smart recovery in the coming quarters and we are investing ahead of the curve to ride this demand recovery by expanding our rural footprint by adding nearly 9,000 villages in Q2 (the second quarter) of 2022-23 to take our total coverage to over 100,000 villages," he added.

Dabur said its foods and beverages business reported a strong 30 per cent growth. The beverages business ended the quarter with a jump of over 30 per cent while the foods business posted a 21 per cent growth.

The home care business was up nearly 21 per cent, while the toothpaste category ended the quarter with an over 11 per cent growth. Its Ayurvedic over-the-counter (OTC) business also reported a 9 per cent growth during the quarter.

( With inputs from ANI )