October 30, 2024
New Delhi, India
Dabur Q2 Results
Dabur Ltd reported a 17.5% year-on-year decline in consolidated net profit to ₹425 crore for the fiscal second quarter ending September 2024 (Q2FY25). This figure marks a decrease from ₹515.05 crore in the same period last year, with a sequential drop of 15.02%. Revenue from operations also declined 5.5% year-on-year, standing at ₹3,028.59 crore, down from ₹3,203.84 crore in Q2FY24.
Impact of Inflation on Revenue
The company attributed the weaker performance to high food inflation and reduced urban demand, which presented challenges across its major consumer segments. Despite these obstacles, Dabur maintained solid consumer engagement, ending the quarter with a consolidated revenue of ₹3,029 crore. EBITDA decreased by 9.4%, totaling ₹704.1 crore for the quarter.
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CEO’s Commentary
CEO Mohit Malhotra highlighted Dabur’s resilient fundamentals, noting a 2% rise in secondary sales during Q2 and a five-year CAGR of over 8% for India operations. Malhotra added, “Dabur’s international business posted robust growth, with Egypt’s constant currency growth at 73%, MENA at 10%, and Sub-Saharan Africa at 26%.”
Dividend Announcement
Dabur’s board approved an interim dividend of ₹2.75 per equity share (275%) for FY25, with a record date of November 8, 2024.
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Sesa Care Acquisition
Dabur also announced the acquisition of Sesa Care Private Limited, an Ayurvedic hair care brand, for an estimated ₹315-325 crore. This acquisition aims to strengthen Dabur’s presence in the ₹900-crore Ayurvedic hair oil sector. Dabur will acquire a 51% stake for ₹12.59 crore and provide a corporate guarantee for Sesa’s existing debt. The merger is expected to conclude within 15-18 months, pending regulatory approvals.
Dabur’s share price closed 2.02% higher at ₹546.65 on the NSE today.
Latest Q2 Results
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