Dabur increases adex by 15.4% to Rs 235.89 crore in Q1 FY2025

New Delhi: Dabur India, a homegrown FMCG company, recorded a 15.44% year-on-year increase in advertising expenditure to Rs 235.89 crore in Q1 of FY2025, up from Rs 204.34 crore in the first quarter of the previous fiscal year.

On a quarterly basis, the company’s spending on advertising grew by 28.4% from Rs 183.65 crore in Q4 FY2024. 

In the last fiscal year, the company spent Rs 849.06 crore on advertising.

Dabur India Chief Executive Officer Mohit Malhotra, said, “The investments we have been making allowed us to drive demand during the quarter with key verticals like Health Supplements, Digestives, Shampoos, Toothpaste, Home Care and Beverages. The India Business saw our key brands and products report market share gains across 95% of the portfolio.”

He added, “Through disciplined execution of our go-to-market strategy, we continued to capitalise on our brand strength and deepen engagement with our consumers.”

The science-based Ayurveda major reported 7% growth in consolidated revenue for the first quarter of 2024-25 to Rs 3,349 crore, driven by steady growth across all key business verticals.

Dabur delivered an 8.3% growth in operating profit. It ended the first quarter of 2024-25 with an 8% growth in consolidated net profit at Rs 500 crore, up from Rs 464 crore a year earlier. 

The India FMCG business posted a volume growth of 5.2% for the quarter.

“It's been a good start to the new financial year as we drove sequential recovery in volume growth, driven by rural markets, to report industry-leading performance across our key verticals. This allowed us to plough higher investments behind our brands to drive market expansion and sustain our growth momentum,” Malhotra said.
 
“Our focused approach towards expanding our rural footprint to over 1.22 lakh villages reaped rich dividends as rural demand outpaced urban demand by 350 bps during the quarter. To cater to this wider network, we have expanded our product basket with the launch of newer affordable and rural-specific pack bundles across categories, besides investing in consumer activations in the hinterland to establish a better connection with our consumers,” Malhotra added.

Riding on the growing demand for its flagship Dabur Red Paste and the premium brand Meswak, Dabur’s Toothpaste business reported a 12% growth during the quarter. The Fruit Juice portfolio grew by 21%, while the Carbonated Fruit Drinks portfolio grew by 90%. The company’s Digestives business posted an 11% jump. The Shampoo portfolio also grew by 13.7% while the Health Supplements business posted a 7% growth during the quarter. The Foods business grew by 21.3%. The recently acquired Badshah business grew by 15%.