New Delhi: Consumer goods major Dabur India Ltd on Thursday reported a 6.5% decline in consolidated net profit to ₹371.5 crore for the quarter ended 31 March, on account of a one-off exceptional charge towards impairment of goodwill in its wholly-owned subsidiary in Turkey, the company said in a filing to the stock exchange.
Consolidated revenue of the maker of Vatika hair oil and Real juices for the quarter stood at ₹2,128.19 crore, up 4.7% from ₹2,032.91 crore a year ago.
A prolonged winter in parts of India and a slowdown, particularly in the rural market, hit the company's revenues in the fourth quarter. “The gradual recovery of the domestic market was temporarily impacted by adverse liquidity conditions and the agrarian crisis, particularly towards the end of the financial year," Mohit Malhotra, chief executive officer, Dabur India Ltd, said in a statement.
“Dabur’s domestic FMCG business recorded a growth of 13% in 2018-19. The performance of our international business was, however, relatively mute due to a challenging macro-economic environment," Malhotra said.
The slowdown in demand towards the end of the financial year was due to liquidity issues and a prolonged winter season in North India, the company said.
Net profit for the fourth quarter was hit by one-off exceptional charges due to impairment of goodwill in one of its wholly owned subsidiary, Hobi Kozmetic, Turkey, as a result of currency devaluation. The impairment pertained to the consumer care segment of the company, Dabur said in its filing.
On a standalone basis, Dabur India reported a 17.2% jump in net profit at ₹414.3 crore.
Across segments though, Dabur reported a healthy double-digit growth.
The company’s healthcare portfolio reported a 11.2% growth during the quarter, while the homecare business comprising Odonil air freshner grew at 16.2% during the quarter. The company’s health supplements business was up 10.2% and its OTC and Ayurvedic Ethicals business grew by 12.8%, while the toothpaste business ended the quarter with a 9.3% growth. Dabur’s skin care business reported an 11.2% growth during the fourth quarter of 2018-19.
For the full year, 2018-19, consolidated revenue rose 10.1% to ₹8,533 crore, from ₹7,748 crore a year earlier. Consolidated net profit registered a 6.5% growth at ₹1,446 crore.
