Dabur's ad spends decline 24.91% YoY to Rs 151.8 crore in Q2 FY23

Dabur India has reported a revenue of Rs 2,986.49 crore in the Q2 of FY23, which is 5.99% up from Rs 2,817.58 crore it earned in the corresponding quarter of the previous year.

However, the advertising and publicity expenses of Dabur India have taken a hit of 24.91% and have fallen to Rs 151.80 crore, from the corresponding quarter of last year which stood at Rs 202.17 crore.

Moreover, on a Quarter-On-Quarter basis, Dabur’s ad spends have gone down by 3.44%, compared to the Rs 157.20 crore it spent in Q1 of FY23.

As the Ayurveda player mitigated the impact of inflationary pressures through disciplined cost control, operational efficiencies and judicious price increases across key product categories, the Net Profit also declined by 2.86% as it stood at Rs 490.86 crore in Q2 of FY23 juxtaposed to Rs 505.31 crore garnered in the corresponding quarter of the previous year.

According to Mohit Malhotra, Chief Executive Officer, Dabur India, “While the challenging economic environment continued to be a concern and impacted the purchasing power, we are seeing green shoots of recovery with the onset of the festive season. The impact of inflationary pressures was more pronounced in the Rural markets with demand growth in hinterland lagging Urban markets for the first time in five quarters.”

“However, we are hopeful of rural demand reporting a smart recovery in the coming quarters and we are investing ahead of the curve to ride this demand recovery by expanding our rural footprint by adding nearly 9,000 villages in Q2 of 2022-23 to take our total coverage to over 100,000 villages,” he added.

Meanwhile, in Q2 of FY23, the beverage business of Dabur witnessed a growth of 30% along with a 21% growth in the foods business. Similarly, the home care business saw a growth of 21% in the second quarter of the current fiscal year.

The growth of the shampoo and post-wash business was up by 9% followed by Dabur Ayurveda’s OTC business which grew by 9% during the second quarter.

The overall market share of the brand grew by 95% along with a 410 bps market share gain in the juices and nectars category, digestive category by 270 bps, Chyawanprash by 120 bps, shampoo by 40 bps and hair oil by 20 bps in Q2 of FY23.

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