Dabur India Ltd. expects consolidated revenue to register mid- to high-single digit growth in the quarter-ended June, which saw sequential improvement in demand trends with rural growth picking up.
Domestic business is expected to record mid-single digit volume growth in the first quarter, with forecast of a normal monsoon and continued focus by the government on macro-economic growth likely to improve rural demand in the coming months, according to a quarterly business update released on Friday.
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Dabur's international business is projected to show robust growth when measured in constant currency terms. However, significant currency depreciation in Turkey and Egypt continues to affect reported growth figures, the company said.
Gross margin are expected to expand due to price increases and cost-saving measures. Advertising and promotional spend grew ahead of revenue. As a result, operating profit is anticipated to grow slightly faster than revenue.
Segment Performance
Home and personal care (HPC) and healthcare segment is expected to grow in high-single digits.
Badshah Masala expected to post strong volume-led growth in high teens.
Beverage segment impacted due to scorching summers.
Food (culinary) category showed good momentum.
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