Dabur India has reported a 24.2% decline in its spending on Advertising and Publicity in Q3 of FY23 on a YoY basis. The ad spends of the FMCG player in the quarter ended December 31, 2022 stood at Rs 179.6 crore, as opposed to Rs 237.1 crore it spent in Q3FY22.
In addition to this, the company’s Net Profit in the third quarter of the current fiscal year stood at Rs 475.9 crore, which is a dip of 5.4% on a YoY basis, juxtaposed to Rs 503.3 crore it had reported in the corresponding quarter of FY22.
However, the FMCG player’s revenue from operations was up by 4.2% on a YoY basis at Rs 3043.2 crore during the quarter under review, as against Rs 2941.8 crore in the corresponding period of the last fiscal year.
As per Dabur, the FMCG player’s Home Care business grew by 18.2%, Oral care by 2.6%, Shampoo by 3.6%, while the Hair Oils and Skin and Salon categories saw a negative growth of 2.4% and 5.6%, respectively, in Q3FY23.
Additionally, the company also posted market share gains across portfolios- Juice and Nectars-250 bps, Chyawanprash- 30 bps, Shampoo- 40 bps and Hair Oils-70 bps.
Similarly, Dabur’s International Business also reported a growth of 14% in Constant Currency terms, with a 3-Year CAGR of 14.1%.
Mohit Malhotra, CEO, Dabur India, said, “We have delivered steady results in what continues to be a difficult cost and operating environment. We continued to adjust prices responsibly to reflect inflation. Our India business reported a growth of 3.3% with a 3-year CAGR of 9.5% and steady market share gains across portfolio, despite most operating categories reporting a decline.”
He also went on to add that the impact of inflationary pressures was more pronounced in the rural markets and it led to lag in growth for the second quarter in a row for Dabur.
“However, we believe that this demand slump in rural has bottomed out as we are now seeing some green shoots of revival in demand in the hinterland. We are hopeful of rural demand reporting a smart recovery on the back of a record farm output and increased government spending. The urban growth will be driven by softening of inflation and buoyancy in new-age channels like Modern Trade and e-commerce,” he stated.