Key Points

Dabur India experienced an 8.31% net profit decline in Q4 FY25, with earnings dropping to Rs 320.13 crore. Despite domestic market challenges, the company's international business showed robust 19% constant currency growth. CEO Mohit Malhotra expressed optimism about future demand recovery in both urban and rural markets. The company strategically plans to exit underperforming product categories to focus on core and premium offerings.

Key Points: Dabur India Q4 Profit Drops Despite International Growth Surge

  • FMCG major faces domestic demand challenges
  • International operations drive revenue growth
  • Company plans strategic category exits
  • Final dividend recommended at 525%
2 min read

Dabur India Q4 net profit falls over 8 pc YoY

Dabur India reports 8.31% net profit decline in Q4, with international business showing strong 19% constant currency growth

"Our international business enabled us to successfully navigate the complex external environment - Mohit Malhotra, Dabur India CEO"

New Delhi, May 7

FMCG major Dabur India on Wednesday reported an 8.31 per cent decline in its net profit to Rs 320.13 crore for the fourth quarter of the financial year 2024-25 (Q4 FY25), compared to Rs 349.53 crore profit in the same quarter last fiscal.

Despite the dip in profit, Dabur’s revenue from operations for the quarter stood at Rs 2,830.14 crore, showing a slight increase from Rs 2,814.64 crore in the year-ago period.

For the full financial year, the company reported revenue of Rs 12,563 crore, up from Rs 12,404 crore in the previous fiscal.

Dabur said that demand for FMCG products remained weak throughout the fourth quarter and the full year.

However, it managed to post a 2.1 per cent constant currency revenue growth in Q4, supported by its international business.

Dabur India CEO Mohit Malhotra said the company was able to navigate a challenging business environment, thanks to the strong performance of its overseas operations.

"Despite facing some pressures in the India business, our international business enabled us to successfully navigate the complex external environment," he said.

"Our international business achieved 19 per cent constant currency growth in the fourth quarter and 17 per cent during the full year. We expect consumer demand in India to recover progressively in the coming quarters, both in urban and rural markets," Malhotra added.

Malhotra also expressed optimism about demand picking up in India in the coming quarters, both in urban and rural markets.

The Board of Directors recommended a final dividend of 525 per cent, taking the total dividend payout for FY25 to 800 per cent.

Group Director P.D. Narang said this translates to Rs 5.25 per share, amounting to a total of Rs 1,417.86 crore in dividends.

Meanwhile, Chyawanprash-maker Dabur plans to exit several underperforming categories-such as tea, adult and baby diapers, and sanitising products, to free up capital and focus on its core portfolio and premium offerings.

“We will exit categories like tea, adult and baby diapers, the sanitising segment, and other beta categories. Our focus will shift to strengthening big, bold brand equities and investing in our core portfolio," Malhotra said during an earnings call with analysts after the company’s March quarter results.

- IANS

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Reader Comments

R
Rahul K.
Not surprised by the profit dip. Dabur products have become quite expensive lately. Their Chyawanprash used to be affordable for middle-class families, but now even that feels premium. Hope they reconsider pricing strategy along with exiting non-core categories.
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Priya M.
Smart move to focus on core products! Their international growth is impressive 🇮🇳✨ But rural demand needs attention - my village still prefers Dabur honey over imported brands. Hope they don't neglect Bharat while growing abroad.
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Amit S.
800% dividend payout is massive! Shows confidence in future prospects. As a shareholder, I'm happy despite the quarterly dip. Their Real juices and Hajmola are market leaders - focusing on these makes perfect sense.
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Sneha R.
Concerned about job losses from exiting multiple categories. Tea business had potential if marketed better. Also, why exit sanitizers when health awareness is rising? Seems like a knee-jerk reaction to temporary slowdown.
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Vikram J.
Dabur's international success proves Indian Ayurveda has global appeal 🚀 But they must improve digital presence. Younger generation discovers brands online, but their social media game is weak compared to new D2C ayurvedic brands.
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Neha T.
Mixed feelings. As a loyal customer, I appreciate their focus on core products but worry about reduced choices. Their baby care range was good quality. Hope this doesn't mean more foreign brands dominating our markets. #VocalForLocal

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