Dabur Q1 Updates: Sees Sequential Demand Recovery; Honitus, Oral Care Lead The Way

Dabur India Ltd. reported a sequential recovery in demand during the first quarter of the current fiscal, with volume growth picking up, particularly in urban markets.

The company's home and personal care division is expected to post strong performance, led by robust growth in the oral, home and skincare categories, according to an exchange filing on Friday.

Flagship brands like Dabur Red Toothpaste, Odonil, Odomos and Gulabari are expected to deliver healthy growth along with market-share gains. In the healthcare segment, products like Dabur Honey, Hajmola, Dabur Honitus and Dabur Health Juices are projected to record double-digit growth, with Dabur Honitus likely to exceed 40% growth.

Organised trade channels, including e-commerce, quick commerce and modern trade, continued to show strong momentum during the quarter, as per the filing. Meanwhile, Dabur's international business is expected to grow in double digits in constant-currency terms, powered by markets such as MENA, Turkey, Bangladesh and the US-based Namaste business.

However, the company's beverage portfolio faced headwinds due to unseasonal rain and a shorter summer. Despite this, Activ Juices and Activ Coconut Water witnessed mid-teen growth, and the company plans to increase focus on the Activ portfolio to align with consumer trends and mitigate the seasonality of its beverages business.

Due to the beverage decline, Dabur's consolidated revenue is expected to grow in low single digits, with operating profit growth marginally lagging revenue. Looking ahead, the company remains optimistic, citing a favourable macroeconomic environment, including above-average monsoon, strong agricultural output, easing inflation and supportive government policies as tailwinds.

Dabur said it continues to invest in its brands, distribution and backend capabilities to drive sustained growth in both revenue and profitability for the full year.