Dabur India Q3 Review - Sluggish Volume, Margin Performance; Better Pricing, Mix To Drive Recovery: Systematix

BQ Prime’s special research section collates quality and in-depth equity and economy research reports from across India’s top brokerages, asset managers and research agencies. These reports offer BQ Prime’s subscribers an opportunity to expand their understanding of companies, sectors and the economy. .Systematix Research Report.Dabur India Ltd. reported a muted set of numbers with revenue growth of 3.4% YoY, domestic volume decline of 3%, margin decline of 130 basis points and profit after tax decline of 5.4% YoY. A deterioration in market conditions in key states of Uttar Pradesh and Bihar, high base and inflation impact were the key factors. Key quarter takeaways are:Dabur's India revenue (71.5% of Q3 total sales) grew at 3.3%, with international revenue expanding at 5.1%,consolidated Ebitda margin dipped 130 bps, with a 215 bps cut in ad spends (from 8.1% to 5.9%) partially offsetting the 280 bps decline in gross margins (combination of inferior mix and price hikes lagging inflation), healthcare revenue (39.7% of Q3 domestic sales) grew by 3% YoY, recording 8.4% three-year compound annual growth rate, with market share gains in health supplements, home and personal care (45.6% of Q3 sales) revenue was up 2.2% YoY, recording 8.7% three-year CAGR, led by market share gains in home, oral and hair care categories, food and beverage (14.8% of Q3) revenue grew at 6.4% YoY and 15.2% three-year CAGR, led by share gains in juices, International business (~25.5% of Q3 total sales) delivered 14% revenue growth in constant currency terms,e-commerce sales grew 40% increasing salience to 9%, consolidated gross margin contracted 280 bps YoY and Ebitda margin by 130 bps YoY to 45.5% and 20% given inferior category and pack mix, and central region (UP and Bihar) saw decline due to insufficient rainfall, delay in winter and adverse sentiment..Click on the attachment to read the full report:.Dabur India Q3 Results: Profit Down 3%, Margin Shrinks On Inflation Woes.DISCLAIMERThis report is authored by an external party. BQ Prime does not vouch for the accuracy of its contents nor is responsible for them in any way. The contents of this section do not constitute investment advice. For that you must always consult an expert based on your individual needs. The views expressed in the report are that of the author entity and do not represent the views of BQ Prime..Users have no license to copy, modify, or distribute the content without permission of the Original Owner.

Dabur India Q3 Review - Sluggish Volume, Margin Performance; Better Pricing, Mix To Drive Recovery: Systematix

While Dabur's near-term growth outlook remains sluggish, medium-term outlook remains strong, given mgmt’s focus on power brands.

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