Company Update : Dabur Ltd By Motilal Oswal Financial Services Ltd
India’s revenue declines to mid-single digit; operating
margin contracts 150-175bp YoY
DABUR released its pre-quarterly update for 4QFY25. Here are the key highlights:
Consumption
* Rural consumption for FMCG remained resilient and continued to grow faster than urban during the quarter.
* General trade remained under pressure, while alternative channels such as modern trade, e-commerce, and quick commerce maintained the growth momentum.
* FMCG volume trends continued to remain subdued during the quarter.
* The company anticipates that the recent union budget will stimulate consumption and support recovery in the FMCG sector.
India business
* DABUR’s culinary business under the brands ‘Hommade’ and ‘Badshah’ continued to perform well and is expected to post double-digit growth.
* The Indian business is expected to decline to mid-single digits due to a delayed and short winter and a slowdown in urban markets.
International business
* The International business is expected to register double-digit growth in CC terms, led by robust momentum in the MENA region, Egypt, and Bangladesh
Consolidated
* Management expects consolidated revenue to remain flattish during the quarter. (3% YoY in 3QFY25; 5% in 4QFY24).
* Operating margin is expected to contract 150-175bp YoY due to inflation, coupled with operating deleverage.
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