Dabur Q3 net profit rises marginally as company battles unprecedented inflation
Premium- The FMCG company's revenue from operations came in at ₹2,941 crore in the third quarter, higher by 8%
Consumer goods maker Dabur Ltd's consolidated net profit rose by a marginal 2% to ₹504 crore during the three months ended December as the company battled unprecedented inflationary pressure.
Dabur had reported a net profit of ₹493 crore in the year-ago period.
The overall operating environment remained challenging throughout the quarter with unprecedented inflation of 13% and subdued consumer sentiments, said Dabur India CEO Mohit Malhotra.
The FMCG company's revenue from operations came in at ₹2,941 crore in the third quarter, higher by 8% as compared to ₹2,728 crore in same quarter last year.
On Wednesday, Dabur shares rose 2.11% to close at ₹558 on NSE.
"Dabur India braved the heavy inflationary pressures, a significant moderation in industry growth and dip in overall consumer sentiments to deliver a competitive and healthy Consolidated Revenue growth," the company said in a statement.
Operating profit for the quarter grew 9.3%, ahead of the topline growth. Dabur's food and beverages business continued to be the outperformer in Q3, growing by 38%.
"We have mitigated the impact of inflation partially through calibrated price increases and cost-saving initiatives. Despite these macro-economic headwinds,
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we remained focused on rolling our consumer-centric innovation that expanded our total addressable market, besides gaining market share across 100% of our product portfolio, which is unprecedented. Our investments in distribution footprint expansion in rural India helped drive growth even in a challenging
environment with rural demand for Dabur outpacing urban demand by 500bps," Mohit Malhotra said.
The home care business ended the quarter with an 19% growth while the skin care business, excluding the Sanitiser range, grew by 20% during the quarter.
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