Dabur Chyawanprash was in the minds of immunity-seeking Indians amid COVID-19 lockdown— the earnings will show if they bought enough of it
Dabur India Ltd
Dabur Indiais all set to announce its fourth-quarter results tomorrow (May 27) for the quarter ending March 2020.
- Dabur said it witnessed a rise in enquiries and demand for Ayurvedic products across the portfolio, particularly the immunity booster range that includes Chyawanprash.
- Dabur’s share price climbed over 9% since March 23.
Dabur ranks among the country’s top five FMCG (fast moving consumer goods) companies and has an annual consolidated revenue of ₹7,700 crore.
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The ₹76,370-crore (about $10 billion) Dabur sells one in every four branded Ayurvedic products in the country and its products. This includes the popular Chyawanprash, which was being seen as immunity boosters and a shield against the COVID-19 virus.
Even Prime Minister Modi suggested the use of Ayurvedic products to boost immunity through an Instagram post. The fourth quarter earnings on May 27 will reveal if enough people bought them.
The share price, however, had climbed over 9% since March 23.
Organic food market is still hot
Dabur reportedly said it witnessed strong growth in enquiries and demand for Ayurvedic products across its portfolio, which includes Chyawanprash, a dietary supplement— based on Ayurvedic texts — that has everything from sugar, honey, ghee, Indian Gooseberry (amla) jam, sesame oil, berries to various herbs and spices during the lockdown.
The company, owned by the $8.3 billion Burman family, has seen a volatile trend in profit in the last five quarters. The profit was down over 6% in the fourth quarter of last year.
Investors will also watch out for the company’s guidance for future earnings.
The coronavirus pandemic has brought a massive change in consumer lifestyles— which saw a large shift towards Ayurvedic medicines and products, according to Euromonitor International. A wave of Indian consumers who prefer tags like organic and ayurvedic products are sweeping products like the Chyawanprash off the shelves.
According to IMARC India’s organic food market may grow at a compounded annual growth rate of 20% to $2.1 billion by 2024.
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