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Dabur's ad-spend declines 16.55% (YoY), witnesses 4.57% increase on QoQ basis in Q1FY23

Although Dabur reported an 8.04% increase in their revenue on YoY basis, the advertising and publicity expenses have declined by 16.55% in Q1 FY23 on YoY basis

Dabur India has reported a revenue of Rs 2,822 crore in the first quarter of financial year 2022-23, marking an 8.04% growth from the Rs 2,612 crore it earned in the corresponding quarter of the previous year.

But the advertising and publicity related spends of Dabur have fallen to Rs 157.20 crore in Q1FY23, which is 16.55% less than the Rs 188.37 crore it spent in Q1 of FY22. However, there is a 4.57% increase in the ad spends on a quarter on quarter (QoQ) basis when compared to the Rs 150.33 crore it spent in Q4 of FY22.

Despite increasing inflationary trends, the ayurveda player has also reported a volume growth of 5% in the India FMCG business and ended Q1 FY23 with a Net Profit of Rs 440.3 crores, up 0.7% from the last year’s figure of Rs 437.3 crores.

As per the company, it was through disciplined cost control and judicious price hikes across categories that Dabur mitigated the impact of unprecedented inflationary pressures and supply chain constraints.

Meanwhile, in Q1 of FY23 the beverage business of Dabur saw a growth of 51% and the foods business grew by 36%. Similarly, the home care business saw a growth of 52% along with the skin and salon business growing at 11.4% in the first quarter of the current fiscal year.

The growth of the oral care business was 12.5% and the digestive business at 31% in Q1 of FY23.

Despite the consumption slowdown and shrinkage in overall demand, Dabur also reported market share gain across 98% of its portfolio.

The market share of Dabur improved in the juices and nectars by 330 bps, mosquito repellent cream by 260 bps, Chyawanprash by 240 bps, honey by 190 bps, shampoo by 50 bps and hair oil by 30 bps in Q1 of FY23.

According to Mohit Malhotra, CEO, Dabur India, “Despite the macro-economic headwinds, we remained focused on rolling our consumer-centric innovation that expanded our total addressable market, and reported strong, sustainable and profitable growth. The demand environment remained stressed in view of the heavy inflation, which saw consumers switch to more affordable smaller packs of branded consumer goods. But both rural and urban demand growth have been at par for Dabur.”

“Rural demand for Dabur was driven by the investments in expanding our rural footprint to over 91,500 villages in Q1, up from 89,800 villages in March 2022. Urban growth, on the other hand, was driven by new-age channels like Modern Trade, which grew by 42% during the quarter,” he added.

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