Dabur India

The desi FMCG company posted a good set of numbers for Q3FY15. Its consolidated net sales rose 9% (YoY) at Rs.2074 crore where domestic growth was 12%, driven by volume growth of 7.4%. EBITDA was up 18% at Rs.390 crore while margins rose from 17.5% to 18.8%. Material costs were lower  48% of sales v/s 49% in previous Q3. There was a marginal increase in advertising and promotional expenses of 15 bps. Net profit for the quarter rose 16% at Rs.283 crore.

International  business contributed 28% to net sales. In terms of break-up of segments, health supplements rules with 26% growth (Chyawanprash, Honey and Glucose), followed by hair care at 21% (Vatika hair oil and shampoo), foods grew 14%(Real and Activ), oral care by 13% (Meswak, Red and Babool), OTC and ethical by 10% (Lal Tail and Honitus), home care by 6%(Odonil and Odomos) while digestives (Hajmola) and skin care rose 5% (Fem and Gulabari) each. Namaste business was under some pressure mainly because of initiatives taken for price stabilization in quarter leading to onetime pipeline correction across geographies. Growth was also impacted by devaluation of currencies in some geographies such as Egypt and Turkey. It has lined up a few launches in the months ahead – Chocolate Chyawanprash, new aromas from Odonil, Anmol Jasmine Oil. And in international markets, Miswak Mouthwash, Miswak Gold toothpaste, Vatika soaps.