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View Promises →Dabur India Limited — Q3 FY25
Dabur India reported Q3 FY25 consolidated revenue growth of 3.1% YoY in INR terms, with India business growing 1.7% and volume growth of ~1.5%.
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Dabur India reported Q3 FY25 consolidated revenue growth of 3.1% YoY in INR terms, with India business growing 1.7% and volume growth of ~1.5%. International business grew 18.9% in constant currency. PAT grew 1.8% YoY. Growth was driven by HPC (5.7%), oral care (9.1%), and international markets, while healthcare was flat due to delayed winters impacting Chyawanprash and honey. Rural outperformed urban for the fourth consecutive quarter. Management expects sequential improvement and mid-single-digit value growth in Q4, with margin maintenance. Key risks include rising inflation (expected ~5%), competitive intensity in beverages, and potential slowdown in rural demand if food inflation persists.
डाबर इंडिया ने तीसरी तिमाही में अपनी कमाई में 3.1% की बढ़ोतरी दर्ज की। भारत में कारोबार 1.7% बढ़ा और बिक्री की मात्रा में करीब 1.5% का इज़ाफा हुआ। अंतरराष्ट्रीय कारोबार में 18.9% की तेजी आई। कंपनी का मुनाफा 1.8% बढ़ा। सबसे ज्यादा बढ़ोतरी घरेलू सामान, मुंह की देखभाल और विदेशी बाजारों में हुई। हेल्थकेयर सेक्टर स्थिर रहा क्योंकि सर्दी देर से आने से च्यवनप्राश और शहद की बिक्री प्रभावित हुई। गांवों में शहरों से ज्यादा बिक्री बढ़ी, लगातार चौथी तिमाही में ऐसा हुआ है। कंपनी को उम्मीद है कि अगली तिमाही में बिक्री में और सुधार होगा और मुनाफा बना रहेगा। मुख्य चुनौतियां हैं - बढ़ती महंगाई (लगभग 5%), पेय पदार्थों में कड़ी प्रतिस्पर्धा, और अगर खाने-पीने की चीजें महंगी रहीं तो गांवों की मांग कम हो सकती है।
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Rising input cost inflation
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India Business Volume Growth
1.5%
+1.5% YoY
Domestic volume growth for Q3 FY25, excluding one-offs.
International Business Constant Currency Growth
18.9%
+18.9% YoY
Strong growth driven by Middle East, North Africa, Egypt, UK, US, and Bangladesh.
Oral Care Growth
9.1%
+9.1% YoY
Driven by double-digit growth in Red franchise and Meswak; gel toothpaste grew 50%.
Hair Oil Market Share
18%
+150bps YoY
Highest ever market share; coconut oil gained 125bps, perfumed oil gained 236bps.
What Changed vs Last Quarter
NEW
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.
NEW
Margin maintenance in Q4 FY25
Management aims to maintain current margin levels in Q4 through price increases and cost savings.
NEW
Inflation mitigation through price increases
Expects ~5% inflation and plans calibrated price increases across categories to offset input cost pressures.
NEW
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.
DROPPED
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.
DROPPED
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.
DROPPED
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.
DROPPED
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.
NEW RISK
Rising input cost inflation
Inflation expected to rise to ~5% in FY26, impacting gross margins if not fully offset by price increases.
NEW RISK
Intense competition in beverages from cola wars
Campa Cola's aggressive pricing and trade margins are pressuring Dabur's nectar portfolio, especially in out-of-home consumption.
NEW RISK
Slowdown in urban demand
Urban consumption growth has moderated to ~5%, impacting categories like juices and healthcare supplements.
NEW RISK
Potential rural demand reversal due to food inflation
High food inflation (~8%) could shift rural spending away from discretionary FMCG, impacting rural growth momentum.
RISK GONE
Sustained food inflation impacting urban demand
High food inflation (~9%) is shifting consumer spending from discretionary to essentials, potentially delaying urban recovery.
RISK GONE
Competitive intensity from carbonated drinks in beverages
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.
RISK GONE
Currency depreciation in international markets
Currency depreciation in Egypt and Turkey caused a translation loss of INR 181 crore in H1, impacting reported international profitability.
RISK GONE
Channel conflict with general trade due to direct supply to quick commerce
Distributors are unhappy with Dabur supplying directly to quick commerce players, potentially affecting GT relationships and margins.
🤫 Topics management stopped discussing
Mentioned in Q1 FY25, Q2 FY25, Q4 FY24
Currency depreciation in Egypt and Turkey caused a translation loss of INR 181 crore in H1, impacting reported international profitability.
Mentioned in Q1 FY25, Q3 FY24, Q4 FY24
Legal costs expected to be ~INR 80 crore for FY25 vs INR 100 crore last year, with potential insurance recovery of 50%.
Mentioned in Q2 FY24, Q3 FY24
Direct distribution reach to increase from 1.42 million to 1.5 million outlets by end of FY24.
Mentioned in Q1 FY24, Q2 FY24
Despite high spice inflation, Dabur remains committed to exiting the fiscal year with a run rate of INR 500 crore from its foods portfolio.
Mentioned in Q1 FY25, Q2 FY25
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.
Fast read
Guidance and risk preview
Management expects sequential improvement and mid-single-digit value growth in Q4, driven by price increases and volume recovery.
Inflation expected to rise to ~5% in FY26, impacting gross margins if not fully offset by price increases.
View Risks →