Dabur India Ltd. expects its consolidated revenue to grow in "low single digits" in the October–December quarter, while the margin is anticipated to register a flattish growth as inflationary pressures continue to weigh.
During the quarter, the maker of Real fruit juice and Honitus cough syrup brands said that rural consumption was resilient and continued to grow faster than urban.
While general trade was still under pressure, alternative channels like modern trade, e-commerce, and quick commerce continued to post strong growth, Dabur said in its business update on Friday.
Category-wise, healthcare was impacted due to delayed onset of winter. It is also expected to be a muted show for the beverage category, hurt by peer Campa Cola's aggression. The home and personal care segment is expected to grow in mid-to-high single digits, while the culinary business under brands Hommade and Badshah may see strong double-digit growth.
Dabur has increased prices to offset the inflationary pressures on some of its business segments, according to the filing. This is expected to have a bearing on the margin.
Dabur's update is weaker than analysts' estimates. "Compared to our muted expectations of 4% consolidated sales growth and 3% Ebitda growth, Dabur is likely to see only 2% sales growth and a flat Ebitda," Abneesh Roy, executive director of Nuvama Institutional Equities, said.
Dabur's international business may grow in double digits in constant-currency terms, led by strong momentum in the Middle East and North Africa region, Egypt, Bangladesh and the US.
Dabur anticipates the growth in fast-moving consumer goods to improve sequentially and it intends to focus on enhancing its market share within the portfolio.
Shares of Dabur closed 2.07% higher at Rs 524 apiece on the National Stock Exchange before the announcement, compared to a 0.76% decline in the benchmark Nifty.
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