Dabur India Posts Robust Q4 FY24 Results, Shares Surge on Strong Performance

Dabur India reports 16.5% rise in consolidated net profit to ₹341.22 crore and 5.11% growth in revenue to ₹2,814.64 crore in Q4 FY24. The company's board declares a final dividend of ₹2.75 per equity share, taking the total dividend for FY24 to 550%.

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Dil Bar Irshad
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Dabur India Posts Robust Q4 FY24 Results, Shares Surge on Strong Performance

Dabur India Posts Robust Q4 FY24 Results, Shares Surge on Strong Performance

Dabur India, a leading ayurvedic and natural healthcare company, has announced impressive financial results for the fourth quarter of fiscal year 2023-24. The company reported a 16.5% rise in consolidated net profit to ₹341.22 crore, compared to ₹292.76 crore in the corresponding quarter of the previous year. Dabur's revenue from operations grew by 5.11% year-on-year to ₹2,814.64 crore in Q4 FY24.

Why this matters: The strong financial performance of Dabur India, a leading player in the ayurvedic and natural healthcare sector, has significant implications for the Indian economy and the healthcare industry as a whole. This growth momentum is likely to drive further investments in the sector, creating new opportunities for businesses and employment.

For the full fiscal year 2023-24, Dabur's consolidated revenue crossed the ₹12,000 crore mark, reaching ₹12,404 crore, a 7.6% increase compared to the previous fiscal's ₹11,530 crore. The consolidated net profit for FY24 grew 7.9% year-on-year to ₹1,843 crore, up from ₹1,707 crore in FY23. Mohit Malhotra, Chief Executive Officer of Dabur India, attributed the company's steady performance to the power of its brands. "We've ended the year with a steady performance, underscoring the power of Dabur's brands. We have been investing heavily behind our brands, which increased by 33%, to drive demand and also sustain the growth momentum," Malhotra said.

Dabur's India business reported a volume growth of 5.5%, including Badshah. The company's focus on premiumization has paid off, with premium products now accounting for 18% of its portfolio. Several of Dabur's brands witnessed significant market share gains, with the mosquito repellent brand Odomos reporting a 677 bps increase, Chyawanprash posting a 138 bps gain, and the hair oil market share rising by 115 bps. Honitus, a cough remedy, marked a 114 bps market share gain, while Dabur's brands in the juices & nectars category saw a 53 bps increase.

The company's international business also performed well, reporting a constant currency growth of 12% in the fourth quarter and 16.4% for the full year 2023-24. The Egypt business grew by an impressive 63%, while the Turkey business was up 39%. The Middle East & North Africa (MENA) markets posted a growth of 6.3%, and the Sub-Saharan Africa business rose 23.8%.

In light of the strong financial performance, Dabur's board has declared a final dividend of ₹2.75 per equity share, having a face value of ₹1 each (i.e., 275%) for FY24. This takes the total dividend for the fiscal year to 550%, rewarding shareholders for their confidence in the company.

The positive financial results have been well-received by the market, with shares of Dabur India ending 3.3% higher at ₹524.30 on the Bombay Stock Exchange (BSE). During the trading session, the FMCG stock gained as much as 5.6% to hit an intraday high of ₹536.20. Dabur's market capitalization now stands at ₹92,908 crore, reflecting the company's strong position in the ayurvedic and natural healthcare sector.

Dabur India's impressive performance in the fourth quarter and full fiscal year 2023-24 showcases the company's resilience and ability to thrive in a competitive market. With a focus on brand investments, premiumization, and international expansion, Dabur is well-positioned to sustain its growth momentum in the coming years. As consumers increasingly seek natural and ayurvedic products, Dabur's expertise in this domain is likely to drive further success and consolidate its market leadership position.

Key Takeaways

  • Dabur India reports 16.5% rise in consolidated net profit to ₹341.22 crore in Q4 FY24.
  • Revenue from operations grows 5.11% year-on-year to ₹2,814.64 crore in Q4 FY24.
  • Full-year consolidated revenue crosses ₹12,000 crore mark, reaching ₹12,404 crore.
  • Consolidated net profit for FY24 grows 7.9% year-on-year to ₹1,843 crore.
  • Dabur's board declares final dividend of ₹2.75 per equity share, taking total dividend to 550%.