Dabur India Limited in its annual filing said it spent Rs 116.87 crore on advertising and promotion in the fourth quarter ending March 31, up 69% from Rs 69.17 crore in the corresponding quarter of the previous year.
However, the Q4 adspends were almost half of the third quarter ending December 31, 2020, which was festive and elections season. The company had spend Rs 229.33 crore in Q3FY21.
According to the standalone financial results, the company had spent Rs 643.5 crore on advertising and promotion during the entire financial year 2021, up 25% from Rs 514.26 crore in FY20.
On a consolidated basis which includes the subsidiaries in other countries along with Dabur India Limited, the company had spent Rs 784.36 crore on advertising and promotion in FY21, up 20% from Rs 650 crore during the previous year.
Dabur India Ltd said in a press statement that it leveraged the emerging growth opportunities and braved the growing headwinds to continue its double-digit Sales momentum in the fourth quarter of 2020-21 financial year. Riding on sustained efforts to drive demand for its Ayurvedic Healthcare, Foods and Nutrition products businesses, coupled with the increased focus on distribution expansion, the company reported a 25.3% jump in Consolidated Revenue for the fourth quarter ended March 31, 2021.
The Q4 2020-21 Consolidated Revenue stood at Rs 2,337 Crore, up from Rs 1,865 Crore a year earlier. Consolidated Net Profit for the Quarter surged 34.4% to Rs 378 Crore from Rs 281 Crore a year earlier. Dabur’s Standalone Revenue rose 30.3% to Rs 1,722 Crore during the quarter.
For the 2020-21 financial year, Dabur India Ltd reported a 10% growth in Consolidated Revenue at Rs 9,562 crore, while Consolidated Net Profit was up 17.2% to Rs 1,693 Crore. Dabur continued to gain Market Share across all key categories like Shampoos, Toothpaste, Hair Oils, Chyawanprash and Packaged Juices & Nectars, during the quarter and the full year.
“In a challenging market environment, we have delivered another consecutive quarter of double-digit, profitable Sales growth. Our strategic business transformation exercise to develop and implement aggressive growth strategies in our core business areas has led to a more flexible company, helping us successfully navigate the emerging headwinds. Dabur's financial situation remains strong with a 25.6% growth in our Operating Profit during Q4 2020-21. Our India FMCG Business led the growth with a 28.3% surge, with an underlying best-ever FMCG Volume Growth of 25.4% during the fourth quarter of 2020-21,” Dabur India Ltd Chief Executive Officer Mohit Malhotra said.
The operating environment remains challenging with the emergence of the second and more devastating wave of COVID. “As the fresh wave of COVID-19 continues to impact lives and livelihood around the world, we stand with all those affected and are committed to protecting and supporting our employees, partners and communities in the face of this unfolding crisis. Despite the uncertainty related to the extent and length of the fresh wave, we will respond to the challenges by sharpening focus on our Power Brands and the Ayurvedic Healthcare portfolio, besides building increased flexibility into our planning and Go-to-Market strategies to drive profitable growth and gain market share,” Malhotra added.