In its second quarter business update shared with the exchanges, Dabur said that it expects the consolidated revenue growth for the September quarter to be in double-digits, although operating margins will be impacted by inflationary pressures during the quarter.
Despite the margin pressures, Dabur’s profit after tax (PAT) will continue to grow at a double-digit level, the company said in its exchange filing.
Within Dabur’s various business segments, the home and personal care business is likely to record double-digit growth, while healthcare is expected to grow in mid-single-digits.
Within the home and personal care business, home care is likely to grow in high-single-digits, skin care may grow in double-digits, while oral care may grow in mid-single-digits on a high base, led by continued investment and franchise strength.
“Health supplements were impacted by the ongoing transition to refreshed packaging and labels across the portfolio, resulting in a temporary drag on performance during the quarter,” Dabur said in its filing.
The Food and Beverage business of Dabur is expected to record growth in the mid-teens, while the beverage portfolio may grow in the early teens.
International business for Dabur is expected to grow in high-teens, according to the filing.
Emerging channels such as e-commerce and quick commerce are also likely to report strong growth momentum during the quarter for Dabur led by the continued investments made by the company and its Omnichannel distribution approach. Modern trade for Dabur also continues to grow in double-digits with general trade growing across rural and urban markets with rural continuing to outpace urban led by Project Saksham.
Shares of Dabur India are trading 2.9% higher after the business announcement at ₹388.9. The stock has been an underperformer this year, and is down 22% so far year-to-date.