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Revenue
₹3,029 Cr
verified against source
Revenue YoY
-5.5%
reported change
EBITDA
Pending
latest reported figure
Source
screener in
record provenance
Actual signal trajectory
Where this quarter sits.
Quarter read
What the record says.
Dabur's Q2 FY25 consolidated revenue declined 5.5% YoY due to a one-time inventory correction in general trade, aimed at improving distributor profitability. Secondary sales grew 2.3%, with home & personal care up 6% and healthcare up 4%. Gross margins expanded 102 bps, but operating profit fell 16.4% due to revenue deleverage and higher A&P spend (7.4% of sales vs 6.8%). International business grew 13% in constant currency. Management expects H2 growth to return to mid-to-high single digits, driven by rural resilience, festive season, and winter portfolio. Key risks include sustained food inflation impacting urban demand and competitive intensity in beverages from carbonated drinks.
Colored figures show movement against the previous available record.
Guidance to track
- Management expects second-half revenue growth to return to mid-to-high single digits, subject to good winters and normal FMCG demand.
- Management aims to reduce distributor inventory from 21 days to around 19 days by end of December 2024.
- 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.
- Post-merger, Sesa's operating margin is expected to inch up to 18-19%, similar to Dabur, once synergies are realized.
Risks flagged
- High food inflation (~9%) is shifting consumer spending from discretionary to essentials, potentially delaying urban recovery.
- Price gap between juices and carbonated drinks (e.g., Campa Cola at INR 45/liter vs Real at INR 130/liter) is causing category decline and may persist.
- Currency depreciation in Egypt and Turkey caused a translation loss of INR 181 crore in H1, impacting reported international profitability.
- Distributors are unhappy with Dabur supplying directly to quick commerce players, potentially affecting GT relationships and margins.
Key quotes
- This was a necessary step to enhance the profitability of our GT distributors and ensure long-term health and hygiene of our business.
- We have been a little collateral damage in this cola war for the past six months or so.
- The real rationale for acquisition is we are a INR 2,000 crore business, and we want to solidify this business, and it's a core business, and we have market shares of 16%, and we have huge headroom for growth in terms of market share gain.
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