Dabur’s healthcare and immunity bet is paying off as it registers the highest revenue growth in at least three years — with volume growth at 16.8%

Dabur’s healthcare and immunity bet is paying off as it registers the highest revenue growth in at least three years — with volume growth at 16.8%
  • Dabur has reported a 17% growth in its standalone net profit at ₹392.68 crore between July and September 2020.
  • The company posts a robust FMCG volume growth of 16.8% during the second quarter.
  • Dabur’s e-commerce business grew by over 200% in the second quarter.
The sustained popularity of ayurvedic products and immunity boosters continues to augment Dabur’s growth in the second quarter. One of India’s largest fast-moving consumer goods (FMCG) companies, Dabur has reported a 17% growth in its standalone net profit, at ₹392.68 crore between July and September 2020 compared to the same quarter last year. This beats the street estimates of 14.7% growth in Dabur’s profit.

The revenue from operations grew over 15% to ₹1,900.90 in the quarter under review, the highest in at least three years.

Dabur’s healthcare and immunity bet is paying off as it registers the highest revenue growth in at least three years — with volume growth at 16.8%

“Our domestic healthcare business reported a strong 49% growth, with the recent consumer-relevant innovations contributing to around 5-6% of our revenue. Our international business has also staged a smart recovery and reported a growth of 5.5% despite the key GCC market continuing to face macroeconomic headwinds,” Dabur India CEO Mohit Malhotra said.
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Dabur’s healthcare and immunity bet is paying off as it registers the highest revenue growth in at least three years — with volume growth at 16.8%

Consumer staples business saw a strong rebound

Although the food business continued to decline for Dabur in the quarter under review, its consumer care segment registered a robust growth. “Dabur’s India FMCG business led the growth with a 19.8% surge, with an underlying FMCG volume growth of 16.8% during the second quarter,” the company said.

The health supplements segment reported a 70.8% growth, and the ayurvedic OTC range grew by over 56% during the quarter.
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Dabur Q2 standalone revenue growth%
Consumer care business18%
Food business-4.10%
Other segments1%

Rural demand and e-commerce is the future business driver

The company said favourable monsoon and enhanced stimulus announced by the government as part of its overall thrust on boosting the rural economy is expected to further drive rural demand in the coming months.

Dabur’s e-commerce business grew by over 200% in the second quarter, with a saliency of 6% as compared to 2.1% a year earlier. Investors cheer the stellar earnings show, with the share price of Dabur gaining over 2% post the announcement.
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Dabur’s healthcare and immunity bet is paying off as it registers the highest revenue growth in at least three years — with volume growth at 16.8%
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