Dabur cuts ad spend by 23% in Q1'18

Dabur India Limited cut down its advertising spend by 23 per cent in the first quarter that ended on June 30, 2017. The company spent Rs 150.04 crore on advertising during the period compared to Rs 196.52 crore in the corresponding quarter last year.

Calling the business environment challenging, the company reported growth in its key businesses and ended the quarter with consolidated revenue from operations of Rs 1,790.1 crore as against Rs 1,952.2 crore a year earlier. Consolidated net profit for the quarter stood at Rs 264 crore as against Rs 293 crore in the corresponding quarter last year.

According to the company, the overall business environment showed signs of improvement in the early part of the quarter with demand revival in the domestic market. However, sales plunged in June across all consumer categories in view of the massive de-stocking by trade channels just ahead of the implementation of GST. The overseas markets also continued to face severe headwinds with currency devaluations and economic turmoil in key geographies.

The toothpaste business posted an over 10 per cent growth during the first quarter. Dabur’s home care business ended the quarter with an over 6 per cent growth while the skin care and salon business reported an over 4 per cent growth. The digestives business also grew by nearly 4 per cent during this period.

Sunil Duggal, CEO, Dabur India, said, “The consumer demand continued to remain strong, helping us improve our market share across key product categories during the first quarter. Despite the short-term challenges of this transition, we remain positive on the medium to long-term outlook for the sector and are optimistic that domestic consumer demand would gain pace in months to come. We have put in place a prudent growth strategy, leveraging Dabur’s herbal heritage and positioning as the ‘science-based ayurveda’ specialist, to deliver profitable volume-driven growth in the coming months.”

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