Unseasonal rains, brief summer hit Dabur's revenue growth in June quarter

Home-grown FMCG major Dabur's consolidate revenue is expected to grow in low-single digits in June quarter on account of a decline in beverages sales due to unseasonal rains and a short span of summer.

Its ''consolidated operating profit growth is expected to marginally lag revenue growth'', said Dabur in its latest quarterly update.

However, Dabur's home and personal care (HPC) division is expected to perform well, driven by oral, home and skin care categories.

''Key brands such as Dabur Red Toothpaste, Odonil, Odomos, and Gulabari are expected to post strong growth coupled with market share gains. Within healthcare our brands such as Dabur Honey, Hajmola, Dabur Honitus, and Dabur Health Juices are expected to post robust double-digit growth,'' the company said.

Dabur Honitus is expected to perform exceedingly well with over 40 per cent growth.

In terms of channels, organised trade including e-commerce, quick commerce and modern trade maintained their growth momentum during the quarter.

About the FMCG sector, Dabur said during the quarter, it witnessed a sequential recovery in demand with uptick in volume growth particularly in urban markets.

Its international business is expected to post a 'double digit constant currency growth' led by key markets like MENA, Turkey, Bangladesh and Namaste Business, a US-based personal care company owned by Dabur.

''On account of decline in beverages, Dabur's consolidated revenue is expected to grow in low-single digits. Consolidated operating profit growth is expected to marginally lag revenue growth,'' it said.

About the outlook, Dabur said with the refreshed strategic vision and favourable macroeconomic conditions such as above average monsoon, good agricultural output, easing inflation and consumption-focused government measures, it expect revenue growth to regain momentum and trend higher in the coming quarters.

''The fundamentals of the business remain strong, and we are continuing to invest behind our brands, expand our distribution reach, build a strong back end and capture efficiencies to deliver good growth in revenue and profitability for the year,'' it said.

(This story has not been edited by Devdiscourse staff and is auto-generated from a syndicated feed.)