Dabur emerges from COVID-19 hit quarter with a bigger market for Chyawanprash and Dabur Honey
- Dabur reported 12% growth in its standalone net profit, at ₹289.4 crore in first quarter.
- Revenue from retail and food business took a major hit.
- “Dabur Chyawanprash reported a growth of over 694% during the quarter, while Dabur Honitus grew by over 80% while Dabur Honey ended Q1 2020-21 with a growth of over 60%,” the company said in a statement.
AdvertisementThe rise in popularity of ayurvedic products and immunity boosters has worked wonders for Dabur in the quarter hit by the coronavirus pandemic. Dabur, one of India’s largest fast-moving consumer goods (FMCG) companies has reported a 12% growth in its standalone net profit, at ₹289.4 crore between April and June 2020 compared to the same quarter last year. This beats the street estimates of 11% dip in Dabur’s profit.
However, the revenue from operations was down 8.4% to ₹1,491 crore. While all segments witnessed some pain because of the lockdown — retail and food business were hit the worst.
|Dabur||Q1 standalone revenue growth%|
|Consumer care business||-2.1%|
|Unallocated other operating revenue||-25.2%|
The quarter was different from normal for Dabur as the summers usually do not witness such demand for its ayurvedic products. And, the CEO himself admitted that Dabur saw a growing demand for Chyawanprash.
“Despite a challenging April, the quarter saw a nearly 7-fold growth in demand for Dabur Chyawanprash and an over 60% surge in demand for Dabur Honey. Dabur has significantly ramped up capacity with production now at near-normal levels and the business poised to deliver growth for the rest of the year,” Dabur India Limited Chief Executive Officer Mohit Malhotra said.
Dabur's share price recovered from early losses post the earnings. The share price was trading in green when both the benchmark bourses were in the red.
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