Jobaaj Stories
Ayurveda giant Dabur India reported a 22% decline in net profits for the quarter that ended in March 2022. Its profit for the quarter in question was Rs 294.34 crores against Rs 377.29 crores for the corresponding quarter last year.
Dabur India is one of India's largest FMCG brands with a legacy and experience of 137 years. Dabur is among India's most trusted brands and the largest Ayurvedic & Natural Healthcare company in the world with a presence in 120 countries.
Dabur's FMCG portfolio today includes 8 Power Brands with distinct brand identities -- Dabur Chyawanprash, Dabur Honey, Dabur PudinHara, Dabur Lal Tail, and Dabur Honitus in the Healthcare space; Dabur Amla and Dabur Red Paste and Vatika in the Personal Care category; and Real in the Food & Beverages category.
The revenues of the company grew 7.5% to Rs 2,517.81 crores from Rs 2,336.79 crores even though higher input costs, resulting in higher prices, had affected consumer purchases. The company's operating profits grew 2% to Rs 453.57 crores, significantly lower than the forecasted figure of Rs 485.34 crores.
Dabur's margin stood at 18% against 18.9% previously due to higher inflation. As such, the cost of materials consumed surged 21.6% to Rs 1,298.4 crores. The company managed to improve its market share in almost all of its product portfolio. Food and beverages reported a 33.5% growth followed by healthcare at 7.4% and home & personal care growing 1.6%, even when the industry saw a 7% decline.
The company had an exceptional loss of Rs 85 crores during the quarter due to the impairment of goodwill of the company's wholly-owned subsidiary, Hobi Kozmetic, on account of the steep devaluation of the Turkish currency.
"Including this impairment, reported net profit for the fourth quarter of 2021-22 stood at Rs 294 crore. The high currency devaluation notwithstanding, Dabur's Turkey business reported a strong operational performance with a 47 percent growth in local currency during the quarter," said the company in its BSE filing.
The stock has seen a substantial decline this week and today the stock faced a full gap down opening. It fell over 2% in early trading hours and touched price levels that it hadn't since late March 2022. It currently trades at around Rs 512 per share.
Article by Aman Agarwal.
This news piece is brought to you in association with jobaaj.com
