Dabur's Q3FY22 adspends down 16% YoY

Dabur India Ltd. on Wednesday said in its regulatory filing that the company spent Rs 237.07 crore on advertising and publicity in the third quarter of the financial year 2022, down 16% from Rs 282.38 crore in the corresponding quarter of the previous fiscal year.

However, the Indian FMCG major spent 17% more on advertising and publicity than the preceding quarter ending September 30, 2021. The company had spent 202.17 crore on advertising and publicity in Q2FY22.

In the nine months ending December 31, 2021, the company’s adspends were at Rs 627.61 crore, marginally down from Rs 630.19 crore in the corresponding period of the previous year.

The company had spent Rs 784.36 crore in the full year ending March 31, 2021.

Dabur reported a consolidated revenue growth of 8% at Rs 2,942 crore, up from Rs 2,729 crore in the same quarter last year, with the 9-month consolidated revenue reporting a 16% growth year-on-year.

Consolidated revenue for the quarter reported a 2-year CAGR of ll.8%, reflecting the remarkable agility and resilience the business continues to demonstrate even in a tough market, the company said in its regulatory filing.

Operating profit for the quarter reported a growth of 9.3% and consolidated net profit for the same period was up 2.3% to cross the Rs 500 crore mark for the second time in a row and ended at Rs 503 crore against Rs 492 crore a year ago.

The consolidated net profit for the 9-month period marked a 10% growth, while the Indian FMCG business reported a 13% volume growth for the 9-month period.

Commenting on the results, Mohit Malhotra, CEO, Dabur India Ltd, said, "The overall operating environment remained challenging throughout the quarter with unprecedented inflation of 13% and subdued consumer sentiments. We have mitigated the impact of inflation partially through calibrated price increases and cost-saving initiatives. Despite these macro-economic headwinds, we remained focused on rolling our consumer-centric innovation that expanded our total addressable market, besides gaining market share across 100% of our product portfolio, which is unprecedented. Our investments in distribution footprint expansion in rural India helped drive growth even in a challenging environment with rural demand for Dabur outpacing urban demand by 500bps."

“There has been a marked revival in discretionary spending by consumers, which helped the Home & Personal care business grow by 8.4%. While our Healthcare portfolio was impacted due to the high base of the previous year and a marked drop in demand for COVID-contextual products, this business reported a 2-year CAGR of 11.4%. Excluding the COVID-contextual range of Chyawanprash and Honey, our domestic FMCG Volume Growth stood at 8% for the third quarter,” Malhotra added.

Going forward, Dabur will continue to plough heavy investments behind its Power Brands, coupled with investment in expanding the rural footprint and enhancing the go-to-market approach to drive sustainable, profitable growth, the company said in its filing.

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