Why Did Dabur India's Q4 Net Profit Drop Over 8% YoY?
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Synopsis
Dabur India faces challenges in Q4 FY25 as its net profit declines by 8.31%. Despite this, the company sees slight revenue growth driven by international operations. CEO Mohit Malhotra remains optimistic about future demand recovery in India. The Board has also recommended a substantial final dividend amidst plans to exit underperforming categories.
Key Takeaways
- Dabur India's net profit fell by 8.31% in Q4 FY25.
- Revenue from operations was Rs 2,830.14 crore.
- Annual revenue for FY25 reached Rs 12,563 crore.
- The company plans to exit underperforming categories.
- A final dividend of 525% has been proposed.
New Delhi, May 7 (NationPress) The FMCG giant Dabur India announced on Wednesday a notable 8.31% decline in its net profit, which reached Rs 320.13 crore for the fourth quarter of the financial year 2024-25 (Q4 FY25), compared to Rs 349.53 crore from the same quarter in the previous fiscal year.
Despite the profit decrease, Dabur's operational revenue for the quarter was Rs 2,830.14 crore, reflecting a minor increase from Rs 2,814.64 crore during the same period last year.
For the entire financial year, the company reported revenue totaling Rs 12,563 crore, up from Rs 12,404 crore in the preceding fiscal year.
Dabur indicated that the demand for FMCG products remained subdued throughout both the fourth quarter and the full year.
Nonetheless, the company achieved a 2.1% constant currency revenue growth in Q4, largely propelled by its international operations.
Dabur India’s CEO Mohit Malhotra remarked that the company successfully navigated a challenging business landscape, mainly due to the robust performance of its global ventures.
“Despite encountering pressures within the Indian market, our international business has allowed us to adeptly manage the intricate external environment,” he stated.
“Our international segment recorded a remarkable 19% constant currency growth in Q4 and 17% for the full year. We anticipate a gradual recovery in consumer demand in India over the next quarters, spanning both urban and rural markets,” Malhotra noted.
Furthermore, Malhotra expressed optimism regarding the anticipated increase in demand across India in upcoming quarters.
The Board of Directors has proposed a final dividend of 525%, elevating the total dividend payout for FY25 to 800%.
Group Director P.D. Narang clarified that this equates to Rs 5.25 per share, resulting in an aggregate dividend of Rs 1,417.86 crore.
Meanwhile, the Chyawanprash producer intends to divest from several underperforming categories such as tea, adult and baby diapers, and sanitizing products, in order to reallocate capital and concentrate on its core portfolio and premium offerings.
“We will withdraw from areas such as tea, adult and baby diapers, the sanitizing sector, and other beta categories. Our focus will shift to enhancing significant brand equities and investing in our core offerings,” Malhotra stated during an earnings call with analysts following the company’s March quarter results.
Point of View
It's evident that the company is navigating a tough market landscape. While the dip in net profit raises concerns, the slight revenue growth and the strength of international operations provide a silver lining. As the FMCG sector continues to evolve, Dabur's strategic decisions, including exiting underperforming categories, will be crucial in enhancing its market position. The focus on core brands and premium offerings could be a decisive factor in their recovery. It's essential for stakeholders to monitor these developments closely, as they may significantly influence the company's trajectory.
NationPress
22/05/2025
Frequently Asked Questions
What caused Dabur India's net profit decline?
The decline in net profit was attributed to weak demand for FMCG products throughout the fourth quarter and the full financial year.
What was Dabur India's revenue for Q4 FY25?
Dabur India's revenue from operations for Q4 FY25 was Rs 2,830.14 crore, showing a slight increase from the previous year.
What is the total dividend payout for FY25?
The total dividend payout for FY25 is recommended to be 800%, equating to Rs 5.25 per share.
Which categories is Dabur planning to exit?
Dabur plans to exit underperforming categories such as tea, adult and baby diapers, and sanitizing products.
What growth did Dabur's international business achieve?
Dabur's international business achieved a 19% constant currency growth in Q4 FY25.
