Dabur India on Thursday said that it expects to register mid-to-high single-digit growth in terms of its consolidated revenue for the December quarter. The FMCG major said it witnessed sequential improvement in demand trends and growth in the third quarter was largely volume-led. However, it pointed out that rural growth still lagged behind urban growth in the quarter under review.

In a BSE filing, the company said, “Gross margins are likely to expand, led by moderating inflation and cost-saving initiatives. A significant portion of gross margin expansion will be channelled into enhancing advertising and promotion (A&P) spends. Consequently, operating profit is expected to grow slightly ahead of the revenue and post an improvement in y-o-y operating margins.”

Commenting on its India business performance, the FMCG major said that it expects food and beverage segment to post a growth in high-single digits. At the same time, HPC (home and personal care) business is expected to record growth in the mid-single digit. “Because of delay in onset of the winter season, we anticipate the healthcare business to grow in low to mid-single digit,” it added.

Meawhile, the company said thst Badshah Masala continued to perform well and is expected to post strong volume-led growth in” high twenties”.

Rural growth lagging

It expects international business to register double-digit growth in constant currency terms, led by good momentum in the MENA region. Stating that the third quarter “witnessed sequential improvement” in terms of demand trends, the company added that rural growth was still lagging urban growth. “Early signs of revival in consumption are visible with improving trends in volumes. With pricing growth remaining subdued due to price increases in the base year, growth is largely volume-led. Dabur’s consolidated revenue is expected to register mid to high single-digit growth during Q3 FY24,” it added

“We expect 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 category, performance of our business segments and gain market shares,” the company stated.

Dabur India’s power brands include Dabur Chyawanprash, Honey, Honitus, PudinHara, Lal Tail, Amla, Red Paste, Vatika and Real.

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