EBITDA margin band of 19-19.5% for FY24
Management reiterated maintaining EBITDA margin in the 19-19.5% range, with any gross margin upside reinvested into media.
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Foods business to exit FY24 at INR 450 crore run rate
Foods portfolio (Hommade + Badshah) expected to reach INR 450 crore exit run rate this year, targeting INR 500 crore next year.
Healthcare vertical targeting INR 150 crore incremental sales
New therapeutics division with 400 specialists targeting INR 150 crore incremental revenue in FY24, reaching 70,000 allopathic doctors.
International business to deliver double-digit constant currency growth
Full-year guidance for international business: double-digit growth in constant currency, with distribution changes fully resolved.
Volume growth expected to improve sequentially
Management expects volume growth to continue picking up in subsequent quarters, driven by rural recovery and government spending.
Gross margin improvement of 120 bps partly reinvested
Around 80% of gross margin gains will be reinvested into advertising and promotion, with balance flowing to operating margin.
Home care target of INR 1,000 crore
Management aims to grow home care (Odomos, Odonil) from ~INR 800 crore to INR 1,000 crore by expanding total addressable market.
Legal costs for Namaste case to reduce
Legal costs expected to be ~INR 80 crore for FY25 vs INR 100 crore last year, with potential insurance recovery of 50%.
Full-year high single-digit revenue growth
Management expects high single-digit consolidated revenue growth for FY26, with Q2 likely double-digit due to a low base.
Q2 double-digit growth expected
Due to a favorable base (5.5% decline last year), Q2 is expected to deliver double-digit growth, though beverages may be low single-digit.
Operating margin to improve significantly in FY26
Management targets a significant improvement in operating margin for the full year, supported by premiumization and cost initiatives.
M&A focus on wellness brands
Company is scouting for M&A targets in wellness foods and health, with a path to profitability equitative to base margins.
Annual operating margin guidance of ~19.5%
Management reiterated commitment to ~19.5% annual operating margin despite INR 63 crore legal cost in H1 and recurring costs of ~INR 20 crore per quarter.
Foods portfolio to exit year at INR 500 crore run rate
Despite high spice inflation, Dabur remains committed to exiting the fiscal year with a run rate of INR 500 crore from its foods portfolio.
Direct reach to increase to 1.5 million outlets by year-end
Direct distribution reach will increase from current 1.4 million to 1.5 million outlets by end of fiscal year.
International business to sustain high double-digit constant currency growth in H2
Management expects international business to continue high double-digit constant currency growth in second half, barring escalation of Middle East conflict.
H2 FY25 revenue growth of mid-to-high single digits
Management expects second-half revenue growth to return to mid-to-high single digits, subject to good winters and normal FMCG demand.
Distributor inventory target of 19 days by December 2024
Management aims to reduce distributor inventory from 21 days to around 19 days by end of December 2024.
Home care portfolio to reach INR 1,000 crore in 2-3 years
Management expects the home care portfolio to grow from INR 700 crore to INR 1,000 crore in a two- to three-year time frame.
Sesa acquisition to deliver 18-19% operating margin post-synergies
Post-merger, Sesa's operating margin is expected to inch up to 18-19%, similar to Dabur, once synergies are realized.
H2 FY26 revenue growth: mid-to-high single digit
Management expects second-half revenue growth in mid-to-high single digits, backed by low-to-mid single-digit volume growth.
EBITDA growth to outpace revenue growth for full year
Management indicated margins will be better than top line, supported by cost savings of ~INR 60 crore in H1 and continued initiatives.
Dabur Ventures: INR 500 crore allocation over next few years
Capital allocation of INR 500 crore for minority/majority stakes in digital-first brands within existing categories (HPC, healthcare, foods).
Foods portfolio run rate of INR 500 crore by year-end
Management committed to exiting the fiscal year with a run rate of INR 500 crore from the foods portfolio, including Badshah.
Direct reach target of 1.5 million outlets by fiscal year-end
Direct distribution reach to increase from 1.42 million to 1.5 million outlets by end of FY24.
EBITDA margin expansion to continue in Q4
Management expects Q4 EBITDA margin expansion to be higher than the 50 bps seen in the first nine months, despite seasonal mix effects.
Legal costs to reduce in FY25
Legal costs related to the U.S. case are expected to be lower in FY25 due to a change to more cost-effective lawyers.
Mid-single-digit value growth in Q4 FY25
Management expects sequential improvement and mid-single-digit value growth in Q4, driven by price increases and volume recovery.
Margin maintenance in Q4 FY25
Management aims to maintain current margin levels in Q4 through price increases and cost savings.
Inflation mitigation through price increases
Expects ~5% inflation and plans calibrated price increases across categories to offset input cost pressures.
Strategic vision revision with McKinsey
Partnered with McKinsey to refine three-year strategy, focusing on beverages and healthcare; exercise to conclude by end of FY25.
Q4 FY26 high single-digit revenue growth
Management expects Q4 revenue growth to be high single-digit, in line with or slightly above Q3's 6.1%.
Q4 EBITDA margin expansion YoY
Management anticipates EBITDA margin expansion in Q4 compared to last year, despite Q4 being a lower margin quarter.
FY27 high single-digit to low double-digit revenue growth
Targeting high single-digit to low double-digit revenue growth for FY27, with volume growth being the primary driver.
Return to 20% operating margin
Management aims to return to 20% operating margin through cost savings and proactive price increases.
Mid-to-high single-digit volume growth in FY25
Management targets volume growth of 5-7.5% for FY25, driven by rural recovery and distribution expansion.
Operating margin target of ~20% in FY25
On a like-to-like basis (excluding legal costs), operating margin is expected to be around 20%, with gradual improvement.
Legal costs of INR 80-90 crore in FY25
The US legal case will incur similar costs as FY24, around INR 80-90 crore, spread quarterly.
Double-digit growth target for beverages in FY25
Beverage business targets double-digit growth in FY25, assuming normal summer weather.
High single-digit value growth for FY26
Management expects full-year FY26 India business to achieve high single-digit value growth, with sequential improvement through the year.
Sustainable double-digit CAGR by FY28
Dabur aims to achieve sustainable double-digit CAGR in both top line and bottom line by financial year 2028.
Exit from tea, diapers, and Vita categories
Management plans to exit tea, baby diapers, and Vita (MFD) categories, which are margin-dilutive and contribute less than 1% of revenue.
FY27 revenue guidance revised to low double-digit growth
Management upgraded from high single-digit to low double-digit revenue growth for FY27, driven by price increases and volume growth.
Domestic business margin expansion targeted
Management aims to improve margins year-on-year through pricing, premiumization, and cost savings, despite 10% input cost inflation.
HPC portfolio expected to sustain double-digit growth
HPC portfolio is expected to grow at least double-digit in FY27, with hair oils, shampoos, and home care continuing strong momentum.
International business expected to return to double-digit growth
Despite Middle East disruptions, management expects international business to grow in double digits, aided by rupee depreciation and price increases.