Dabur India spent Rs 150.33 crore on advertising and publicity in the fourth quarter ending March 31, 2022. The FMCG major had spent Rs 154.17 crore in the corresponding quarter of the previous year.
In the quarter ending December 31, 2021, Dabur spent Rs 237.07 crore on advertising and marketing.
Altogether in FY22, the company spent Rs 777.94 crore in comparison to Rs 784.36 crore in FY21.
The homegrown FMCG major has reported a 21.98% decline in consolidated net profit to Rs 294.34 crore for the fourth quarter ended March 2022, on account of inflationary headwinds and impairment of goodwill in its international business.
In terms of turnover, Dabur has now become a Rs 10,000 crore company. Its revenue from operation in FY22 touched Rs 10,888.68 crore.
The company had posted a net profit of Rs 377.29 crore in the January-March quarter a year ago, Dabur India said in a BSE filing.
Its revenue from operations rose 7.74% to Rs 2,517.81 crore during the quarter under review, against Rs 2,336.79 crore in the corresponding quarter of the previous fiscal.
Total expenses stood at Rs 2,141.04 crore, up 8.7% from Rs 1,969.54 crore in Q4 FY21.
“The dramatic rise in input costs was the major challenge during the quarter. We responded to this challenge with a mix of pricing actions and cost control measures. These are challenging times, and we are happy to have progressed well in this journey with consumer-centric innovations to expand our total addressable market and gain market share across 99% of our product portfolio. Innovation continued to be the cornerstone of our strategy with new launches contributing to 5% of our Revenue. The year 2021-22 was a strong year for Dabur as we ended with industry-leading revenue growth of 13.8% in our India Business, with an underlying FMCG Volume Growth of 10.1% for the full year. We also ended the year with a 15.8% Constant Currency growth in the International Business,” said Mohit Malhotra, Chief Executive Officer, Dabur India.
“We have reported strong organic growth, with broad-based market share gains, following disciplined execution, rapid consumer-centric innovation and increased digitalisation. Despite the near-term concerns around heightening inflationary pressures and a resultant consumption slowdown, Dabur will continue to plough investments behind our power brands, coupled with investment in expanding the rural footprint and enhancing the go-to-market approach to drive sustainable, profitable growth, going forward,” Malhotra added.
Dabur has invested ahead of the curve in expanding its rural coverage and today reaches around 90,000 villages. “We have added 30,000 new villages to our network in the past one year alone,” he further said.
Dabur’s Food & Beverages business reported a 33.5% growth during the quarter with its Juices & Beverages business growing by 35%. The Home Care business, riding on a strong performance of air fresheners, ended the quarter with an 11% rise. The Health Supplements business, riding on strong demand for flagship brands like Dabur Honey and Dabur Glucose, ended up 9.7% during Q4 2021-22, while the OTC portfolio ended up 17%.
Despite the consumption slowdown and shrinkage in overall demand, Dabur reported market share gains across 99% of its product portfolio. In juices and nectars, Dabur grew ahead of the category and improved its market share by 610 bps. Dabur also reported a 250 bps gain in its Chyawanprash market share and a 40 bps gain in shampoo market share during the quarter.
Dabur's International Business continued to move ahead on the growth trajectory with a 10.7% jump in Constant Currency terms and a 2-year Constant Currency CAGR of 17%. The Egypt business grew by over 12%, while the Namaste business was up 11% and the Turkey business posted a growth of over 47%.
The Board of Directors recommended a Final Dividend of 270%, taking the Total Dividend for 2021-22 to 520%.
“In line with our payout policy, the Board has proposed a dividend of Rs 2.70 per share, aggregating to Rs 477.32 crore,” Dabur India’s Group Director PD Narang said.