Dabur India Ltd. reported a 3% rise in consolidated net profit for the June quarter, in line with expectations.
Dabur posted a profit of Rs 514 crore in the first quarter as compared to Rs 500.1 crore in the year-ago period, according to an exchange filing on Thursday.
Dabur Q1 Highlights (Consolidated, YoY)
Revenue up 1.7% to Rs 3,404.58 crore versus Rs 3,349.11 crore (Bloomberg Estimate: Rs 3,397.38 crore).
Net profit up 3% to Rs 513.91 crore versus Rs 500.12 crore (Bloomberg Estimate: Rs 490.38 crore).
Ebitda up 2% to Rs 667.82 crore versus Rs 655.03 crore (Bloomberg Estimate: Rs 650.80 crore).
Margin flat at 19.6% (Bloomberg Estimate: 19.2%).
Rural Versus Urban Business Growth
Rural markets outperformed urban ones for five straight quarters, according to a press release from the firm. Dabur expanded its distribution footprint with direct reach, increasing by 63,000 outlets year-on-year, now spanning 1.52 million outlets, up from 1.45 million in the first quarter of 2024-25.
Its village coverage expanded by around 10,000 villages, numbering up to 1.33 lakh villages.
International Business Growth
Dabur's international business saw a 13.7% growth in constant currency terms, the release said. Its UK business reported a 41% growth, while the Turkey business grew by 36%.
The company's sub-Saharan African section grew 20%, and the Middle East and North Africa sector saw a 10.1% growth. The Bangladesh business also reported a 10.2% constant-currency growth.
The company saw market-share gains across 95% of its portfolio.
Shares of Dabur closed 1.34% higher at Rs 529 apiece on the NSE, compared to a 0.35% fall in the benchmark Nifty. The stock has fallen 1.66% in the last 12 months and fallen 16.78% on a year-to-date basis.
Out of 41 analysts tracking the company, 15 have a 'buy' rating on the stock, 18 recommend 'hold' and eight suggest 'sell', according to Bloomberg data. The average of 12-month analysts' price target implies a potential downside of 1.6%.
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