You are using an older browser version. Please use a supported version for the best MSN experience.

Dabur India Q1 net profit falls 10%

LiveMint logoLiveMint 04-08-2017 Sounak Mitra

New Delhi: Dabur India Ltd on Friday reported a 9.8% decline in consolidated net profit in the quarter ended 30 June as sales dipped 8.3% during the period due to “massive de-stocking by trade channels” before the implementation of the good and services tax (GST), the company said in a statement.

Besides, Dabur’s business across the international market “continued to face severe headwinds” due to currency devaluations and economic turmoil in some of its key markets.

The New Delhi-based consumer packaged goods company’s consolidated net sales declined to Rs1,790.1 crore for the quarter to 30 June as compared with Rs1,952.2 crore reported in the corresponding quarter previous year. Consolidated net profit for the quarter came down to Rs264.86 crore as against Rs293.64 crore in the corresponding year-ago quarter.

On a stand-alone basis, Dabur India’s business suffered more. Stand-alone net profit for the quarter to 30 June declined 14.5% to Rs169.59 crore as sales dropped by 5% to Rs1,233.74 crore.

“The quarter began on a positive note with a strong revival in domestic demand in April and May. Trade sentiments remained cautious in June with massive de-stocking in the run-up to GST implementation. However, consumer demand continued to remain strong, helping us improve our market share across key product categories during the first quarter of 2017-18,” Sunil Duggal, chief executive officer, Dabur India, said in a statement.

While overall business suffered, Dabur India managed to grow its toothpaste business by around 10% and home care business by 6%. Its skin care and salon business and the digestives segment grew by around 4% each during the quarter under review.

Despite the short-term challenges of this transition, said Duggal, the company’s management has a positive outlook in the medium to long term as it believes that domestic consumer demand would gain pace in the near future.

“We have put in place a prudent growth strategy, leveraging Dabur’s herbal heritage and positioning as the ‘Science-based Ayurveda’ specialist, to deliver profitable volume-driven growth in the coming months,” added the CEO.

More From LiveMint

image beaconimage beaconimage beacon