Dabur Q1 profit falls 6% to Rs 342 crore, volume declines 9.7%

Dabur india

FMCG company Dabur India on July 30 reported a net profit of Rs 341.8 crore for the quarter ended June 2020, registering a 5.9 percent YoY decline as lockdown dented its business during the quarter.

Revenue from operations for the quarter stood at Rs 1,980 crore, down 12.9 percent, compared to Rs 2,273.3 crore reported in the corresponding period last year.

Domestic volume declined by 9.7 percent for April-June period 2020, but was ahead of the average of estimates of analysts polled by CNBC-TV18 which was pegged at 14-15 percent decline.

“Domestic FMCG business saw a decline of 6.9 percent due to the lockdown in April and international Business saw a decline of 21.6 percent, as a result, overall volume declined by 9.7 percent,” said Dabur in its BSE filing.

Healthcare business grew by 29.2 percent YoY to Rs 532 crore, but home & personal care segment registered a 14.9 percent decline YoY at Rs 679 crore and foods division saw 34.4 percent fall at Rs 203 crore in June quarter 2020, company added.

On the international business front, it said MENA was impacted by COVID and macroeconomic headwinds with Egypt reporting a decline of 26.1 percent YoY, but Hobby had a strong quarter, growing by 33.5 percent and Namaste’s US business reported strong 12.3 percent growth.

“While Nepal business saw a decline of 53 percent on account of curfews in the country, Bangladesh saw a growth of 14 percent YoY,” it added.

The operating performance of the company also beat analysts’ expectations. Earnings before interest, tax, depreciation and amortisation (EBITDA) fell 9 percent year-on-year to Rs 416.6 crore and margin rose 90 bps YoY to 21 percent, which both were ahead of CNBC-TV18 poll estimates of Rs 398 crore and 20.1 percent respectively for the quarter.

The stock price was down just 0.09 percent at Rs 489.45 on the BSE at the time of publishing this copy.

News Source:- Moneycontrol

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