Dabur India Sees Improvement In Demand, Expects Mid To High Digit Revenue Growth In Q1 With forecasts of a normal monsoon and continued focus by the government on macro-economic growth, the company expects the improvement to accelerate in the coming months.
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FMCG major Dabur, announced a sequential improvement in demand trends for the June quarter, with a particular boost in rural growth, as per a PTI report. Dabur anticipated mid-single-digit volume growth for its domestic business and consolidated revenue growth in the mid-to-high single digits for Q1 FY25.
With forecasts of a normal monsoon and continued focus by the government on macro-economic growth, the company expects the improvement to accelerate in the coming months.
In India business, HPC (home and personal care) & healthcare segment is expected to grow in high-single digits. However, the beverage segment faced challenges due to reduced travel and out-of-home consumption caused by the intense summer heat, while the food (culinary) category showed strong momentum, the company noted.
The company also highlighted robust growth in its International Business, which typically accounts for 25-30 percent of its overall revenue. However, Dabur noted that severe currency depreciation in Turkey and Egypt continued to have an impact on translated growth.
Commodity prices were stable during the quarter and gross margins are likely to witness some expansion on account of roll over price increases and cost-saving initiatives. The business continued to invest strongly behind the brands with advertising & promotional (A&P) spends growing ahead of revenue. Consequently, the operating profit is expected to grow marginally ahead of revenue, the company stated in the press release.
