Dabur's ad spends down 22% in Q1FY21

The company spent 8.7% of its revenue on advertising and publicity in the quarter ending June 2020

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Dabur's ad spends down 22% in Q1FY21

Dabur India Limited spent Rs 130 crore on advertising and publicity in the first quarter of FY21, 22.2% less than Rs 167 crore in the same period of last year.

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The advertising spends in the quarter ending June 2020 was 8.7% of Dabur’s revenue as compared to 10.2% during the corresponding quarter of the previous year.

The slowdown in economic activity and Supply Chain disruptions in view of the unprecedented lockdown announced by the Government to arrest the spread of COVID-19 pandemic continued to impact the business in the beginning of the first quarter of 2020-21. As the restrictions were subsequently eased, Dabur India Ltd quickly scaled up operations to reach near normal levels in May and June 2020.

Dabur India Ltd ended Q1 of 2020-21 with a 12.9% drop in Consolidated Revenue from Operations at Rs 1,980 Crore as against Rs 2,273 Crore a year earlier. Consolidated Net Profit for the Quarter stood at Rs 342 Crore, down 5.9% from Rs 363 Crore a year ago.

In the Standalone India Business, Dabur India Ltd reported a 12.3% growth in Net Profit at Rs 289.4 crore in Q1 2020-21, up from Rs 257.8 crore a year earlier. Standalone Revenue for the quarter stood at Rs 1,491 crore as against Rs 1,628 crore a year ago. Dabur also continued to gain Market Share across all key categories like Chyawanprash, Toothpaste and Packaged Juices & Nectars, during the quarter.

“We entered this crisis from a position of strength. We were growing at a steady pace when the COVID pandemic brought business to a standstill. Amidst this challenging business environment, we quickly revamped our portfolio to meet the growing consumer need for quality Preventive Healthcare, Personal Hygiene and Household Hygiene products, while alongside enhancing production of our existing Ayurvedic Immunity boosters like Dabur Chyawanprash and Dabur Honey. Despite a challenging April, the quarter saw a nearly 7-fold growth in demand for Dabur Chyawanprash and an over 60% surge in demand for Dabur Honey. Dabur has significantly ramped up capacity with production now at near-normal levels and the business poised to deliver growth for the rest of the year,” Dabur India Limited Chief Executive Officer Mohit Malhotra said.

Dabur Chyawanprash reported a growth of over 694% during the quarter, while Dabur Honitus grew by over 80% while Dabur Honey ended Q1 2020-21 with a growth of over 60%. The quarter saw Dabur introduce a record number of new products and variants anchored on the consumer need for Health, Immunity and Hygiene. The quarter saw our new products record Sales of over Rs 100 Crore.

"We will continue to invest behind our Power Brands, many of which are in the Healthcare space, to drive business growth. Going forward, we will also capitalize on the emerging tailwinds and our distribution might to further strengthen our position as a frontrunner in the Ayurvedic Healthcare and Hygiene products markets," Malhotra added.

Category Growths

Riding on the strong demand for Dabur Chyawanprash and Dabur Honey, Dabur’s Health Supplements Business reported a 53% growth during Q1 of 2020-21. The OTC Healthcare Business ended the quarter with a 34% growth while the Ayurvedic Ethicals business was up 11%. The Toothpaste Business, on the back of continued demand for our flagship Dabur Red Paste, ended the quarter with a nearly 3% growth. Other categories have also witnessed improvement in Sales sequentially through the quarter.

Dabur Q1FY21