Dabur India has reported a 29.99% spike (YoY) in its spending on advertising and publicity which stood at Rs 204.34 crores in Q1FY24.
In the last fiscal’s corresponding period, it spent Rs 157.20 crores on advertising.
The FMCG giant also recorded an uptick of 3.53% in its net profit which stood at Rs 456.61 crores in the first quarter ended June 31, 2023, as compared to the previous year’s Rs 441.06 crores.
Dabur’s total expenses summed up to Rs 2646.69 crores in Q1FY24, which is 12.22% higher on a YoY basis when compared to Q1FY23’s Rs 2358.52 crores.
In terms of the company’s tally for Total Income, the FMCG player earned Rs 3240.25 crores in the first quarter of the current fiscal year, up 10.85% (YoY) from last year’s Rs 2922.98 crores.
The revenue from operations of the FMCG major was also up by 10.91% at Rs 3130.47 crores. Last year, the same stood at Rs 2822.43 crores.
"We remain committed to our strategy of superior go-to-market execution by enhancing our distribution footprint while focusing on driving growth for our power brands and building an agile organisation culture in our pursuit of sustainable, balanced growth and value creation," Dabur India Chief Executive Officer Mohit Malhotra said.
The company has taken several measures to pursue greater efficiency and the gains were ploughed back in the form of higher investments to drive demand, he added.
"Our media spends grew 30% in the consolidated business and 28% in the India business," Malhotra said.
He noted that with inflation softening, the company has seen its rural growth bounce back to high single digits after three quarters.
While rural growth continues to lag urban demand, the gap has reduced significantly, Malhotra said.
"We continue to strengthen our long-term competitiveness through investments in developing consumer-centric innovations and technology, as we deliver on our purpose of health and well-being for every household," he added.