New Delhi: FMCG major Dabur India Ltd on Thursday reported a 7 per cent jump in revenue and a 10.7 per cent growth in operating margin during the third quarter of 2019-20.
The consolidated revenue stood at Rs 2,353 crore, up from Rs 2,199 crore a year earlier. The net profit grew 8.7 per cent to end the third quarter at Rs 398 crore, up from Rs 366 crore a year ago.
The net profit was impacted by one-time impairment in value of investments to the tune of Rs 20 crore. Excluding this impairment, the net profit for Q3 FY20 marked a 12.8 per cent growth year-on-year.
Dabur’s domestic FMCG business reported an underlying volume growth of 5.6 per cent during the quarter.
“While the global macroeconomic environment continues to be challenging and competitive intensity remains high, we have successfully tapped the growth opportunities to deliver a strong performance during the quarter,” said Dabur India Ltd Chief Executive Officer Mohit Malhotra.
“Our focus on strengthening the core healthcare portfolio with heavy investments behind power brands, coupled with investment in expanding our rural footprint and enhancing our go-to-market approach, continues to serve us well. This has enabled us to grow ahead of categories and gain market share across our portfolio,” he said in a statement.
The near-term outlook for demand growth remains challenging with most key categories reporting a steady decline in value and volume growth, said Malhotra.
Dabur’s international business grew by 11.7 per cent during the third quarter of 2019-20, led by strong local currency growth in key markets like the Middle East and North Africa (MENA), Egypt, Nigeria, Turkey, and Nepal.
The Turkey business grew by over 32 per cent while Nepal reported nearly 21 per cent growth during the quarter. The MENA business posted a growth of over 10 per cent while Egypt grew by 17 per cent and Nigeria by over 17 per cent.