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Systematix Research Report
Dabur India Ltd. reported a muted set of numbers with revenue growth of 6.4% YoY, domestic volume growth of 1%, margin decline of 270 basis points and adjusted profit after tax decline of 20.7% YoY.
Key reasons for the weakness were lesser inventory loading/down stocking due to unseasonal rains, sluggish growth in Dabur's home and personal care categories, high base in healthcare, significant deterioration in category and pack mix, currency devaluation in international business and a few one-off expenses.
Key quarter takeaways are:
India revenue (71.3% of FY23 total sales) grew at 4.7%, with international revenue expanding at 1.4%,
consolidated Ebitda margin dipped 270 bps, led by higher opex and decline in gross margins (combination of inferior mix and headwinds in international business),
Healthcare revenue declined 7% for full year, recording 9% three-year compound annual growth rate, with market share gains in health supplements,
home and personal care revenue was up 5% for full year, recording 9% three-year CAGR, led by market share gains in home, oral and hair care categories,
food and beverage revenue grew at 30% for full year and 22% three-year CAGR, led by share gains in juices,
International business (~25.1% of FY23 total sales) delivered 9.6% revenue growth in constant currency terms,
e-commerce sales grew 30% increasing salience to 9%,
consolidated gross margin contracted 163 bps YoY and Ebitda margin by 270 bps YoY to 45.8% and 15.3% given inferior mix and headwinds in international business, and
Central region (Uttar Pradesh and Bihar) which saw decline in Q3 FY23 witnessing a some recovery in current quarter.
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