NEW DELHI: Dabur India Ltd on Thursday reported a 12.6% rise in net profit for the quarter ended 31 December, driven by its consumer care products portfolio, but political unrest in Nepal crimped growth in its food business.
The Delhi-based packaged consumer goods company reported a net profit of Rs.318.5 crore in the quarter, up from Rs.282.8 crore a year ago. Net sales rose 2.4% to Rs.2,122.4 crore from Rs.2,073.6 crore despite “a challenging business environment and continued softer consumption trend across the industry”, the company said.
“The macroeconomic environment continues to be challenging and we faced several headwinds in the form of geopolitical disturbances in key geographies in the Middle East and delayed winter in India. The ongoing political unrest in Nepal and blockade of the India-Nepal border severely impacted Dabur’s foods business,” chief executive officer Sunil Duggal said.
The company has taken steps to mitigate the impact, boosted production of juices in Sri Lanka and India, and is “hopeful of reporting normal growth going forward,” Duggal said. During the quarter, revenue from the food business dropped 23.7% to Rs.167.72 crore from Rs.219.83 crore in the year-ago period. Its toothpaste business grew 15.5% and skin care products by 10%. Home care business, over-the-counter (OTC) and so-called ethicals category, each grew 8%.
Dabur’s international business division reported 14.8% growth, backed by 15% growth in the Bangladesh market, 14% growth in Turkey and around a 10% growth in West Asia, the company said in a statement. “Going forward, we will continue to pursue an aggressive growth strategy,” Duggal said.
US-based Namaste Laboratories, owned by Dabur, posted strong double-digit growth with both the US and non-US businesses performing well, the company said. According to Duggal, the overall demand environment remained tepid in the third quarter with some key segments showing deceleration while competitive intensity was higher.
“We are pursuing a prudent growth strategy and have taken steps to efficiently manage the emerging risks and challenges,” he added. Dabur stock closed at Rs.243.20, up 2.62% on the BSE on Thursday, while the benchmark Sensex closed at 24,469.57 points, down 0.09%.
