India, Jan. 31 -- India's leading Science-based Ayurveda major Dabur India announced a 3.1% jump in Consolidated Revenue for the third quarter ended December 31, 2024, with consistent market share gains across key categories and continued investments in consumer-centric innovation to drive demand. Consolidated Revenue for Q3 2024-25 stood at Rs 3,355 Crore, up from Rs 3,255 Crore in the same quarter last year. The Q3 Revenue growth stands at 5.6% in Constant Currency terms. Operating Profit registered a 2.1% growth Year-on-Year at Rs 682 crore.
The Board of Directors of Dabur India met here today to consider the audited financial results of the company for the quarter ended December 31st, 2024.
In a quarter marked by high food inflation, continued moderation in urban demand and a strong resurgence in rural markets, Dabur continued to build consumer engagement across its key brands in rural India with a focus on driving sustainable, profitable long-term growth.
"We focused on strengthening our competitive edge in the marketplace to gain market share in 95% of our portfolio and enhancing brand superiority to strengthen and consolidate our position in the categories where we operate," Dabur India, chief executive officer, Mohit Malhotra said.
Strategic vision
With the geopolitical landscape remaining volatile in the short term, shrouded by uncertain macroeconomic indicators, Dabur has decided to revise its strategic Vision cycle from four years to three years to create a more agile organization that can quickly navigate the challenges and capture the emerging opportunities. "We have engaged a leading consulting firm, McKinsey & Co to refine and align our strategies for the next 3 years in line with the evolving dynamics," Malhotra said.
Rural focus
"Our rural distribution network expanded by 15,000 villages this fiscal and today reaches over 131,000 villages, making it amongst the highest in the industry. This extensive reach has given us a distinct advantage, allowing us to drive rural growth at a pace nearly 140 bps ahead of urban areas. The positive trend in rural consumption is a testament to our commitment to this consumer base and our ability to adapt to their unique needs," Malhotra said.
Market share gains & category growths
The India Business saw Dabur's key brands and products post category-leading growths with market share gains across 95% of the portfolio, led by a 150 bps improvement in Hair Oils market share. With this, Dabur's total hair oils market share now stands at its highest-ever 18%. Dabur also reported 101 bps gain in Air Freshener market share and 318 bps gain in Juices & Nectars market share.
Dabur's Toothpaste business, led by continued demand for its flagship Dabur Red Toothpaste and premium brand Meswak, ended the quarter with a 9.1% growth. The Skin & Salon business reported a 5.6% growth while Hair Oils grew by 3.1%. The Digestives category grew by around 4%. The Foods business reported a 30% growth in Q3. The Badshah business also reported 15% growth in Q3.
"Our focus on premiumization is also paying off, with our premium portfolio growing 2.5 to 3 times faster than our overall business in India. We intend to continue this journey and keep delivering products that exceed our consumers' expectations," Malhotra said.
Dabur's International Business reported strong constant currency (CC) growth of 19% during the third quarter, led by Egypt, MENA, US and Bangladesh.
ESG focus
Dabur is progressing well to meet its long-term sustainability commitments with a significant improvement in its Corporate Sustainability Assessment or CSA Score for 2024. Dabur has been ranked by DJSI amongst the top two FMCG Companies in India with a score of 81, up from 72 a year ago. "Our commitment to Environmental, Social, and Governance (ESG) principles is today at the core of our business strategy. These accolades are a testament to the hard work and commitment of our entire team. As we move forward, we remain steadfast in our mission to drive sustainable growth and make a meaningful impact on the world," Malhotra added.
Published by HT Digital Content Services with permission from FoodTechBiz.