Dabur India FY24 Annual Earnings Summary
4 quarters covered · ₹12,404 Cr revenue · ₹1,811 Cr PAT · 4.8% average EBITDA margin.
Quarter-by-quarter progression
Management promises made during the year
Current-quarter commentary contains related risk or weakness, so the promise appears not to have been delivered yet.
Q2 FY24Current-quarter commentary contains related risk or weakness, so the promise appears not to have been delivered yet.
Q2 FY24Current-quarter commentary contains related risk or weakness, so the promise appears not to have been delivered yet.
Q3 FY24Current-quarter commentary contains related risk or weakness, so the promise appears not to have been delivered yet.
Q3 FY24Current-quarter commentary contains related risk or weakness, so the promise appears not to have been delivered yet.
Q4 FY24Current-quarter commentary contains related risk or weakness, so the promise appears not to have been delivered yet.
Q4 FY24Current-quarter commentary contains related risk or weakness, so the promise appears not to have been delivered yet.
Q4 FY24Risks flagged during the year
Ongoing multi-district litigation in US against hair relaxer industry could result in continued legal costs (~INR 20 crore/quarter for ~2 years) and potential revenue loss from relaxer portfolio (25% of Namaste's $45-50M business).
Q3 FY24 · highFood inflation in fruits, vegetables, spices, and cereals remains high, potentially delaying rural recovery despite Dabur's outperformance.
Q4 FY24 · highUnseasonal rains and delayed winters hurt health supplements and beverages; similar weather risks persist.
Q1 FY24 · mediumBeverage portfolio declined ~1.6% in Q1 due to unseasonal rains in North and West India; full-year growth may be muted if weather patterns persist.
Q1 FY24 · mediumRecent study questioned Dabur Honey purity; management strongly refutes claims but reputational risk remains, though past controversies led to market share gains.
Q1 FY24 · mediumSpices inflation at 19% and fruit concentrate inflation impacting food margins; may offset deflation in other raw materials.
Q2 FY24 · mediumIf the Israel-Hamas war spreads to the broader region, Dabur's international business (MENA region grew 18.4% in Q2) could be adversely impacted.
Q2 FY24 · mediumSouth India rural market is lagging due to poor monsoon and credit extension issues, with inventory build-up and delayed payments affecting business.
Q2 FY24 · mediumNew entrant Storia in coconut water impacted Dabur's market share in modern trade; recovery depends on aseptic PET bottle capex (INR 30-40 crore) which may take time to yield results.
Q3 FY24 · mediumMuted and delayed winters led to flat growth in Chyawanprash, though inventory is expected to clear in Q4.
Q3 FY24 · mediumThe U.S. patent litigation continues to incur legal costs (~INR 20 crore per quarter), though scope has been narrowed and insurance may cover final damages.
Q4 FY24 · mediumLegal costs of INR 80-90 crore annually continue; case outcome remains uncertain despite management confidence.
What changed through the year
Q1 FY24 · 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.
Q1 FY24 · 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.
Q1 FY24 · 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.
Q1 FY24 · 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.
Q2 FY24 · 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.
Q2 FY24 · 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.
Q2 FY24 · 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.
Q2 FY24 · 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.
Q3 FY24 · 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.
Q3 FY24 · 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.
Q3 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.
Q3 FY24 · 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.
Q4 FY24 · 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.
Q4 FY24 · 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.
Q4 FY24 · 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.
Q4 FY24 · Double-digit growth target for beverages in FY25
Beverage business targets double-digit growth in FY25, assuming normal summer weather.