Dabur India (DABUR) Q1 24/25 earnings summary

Executive summary

• Consolidated revenue for Q1 FY25 grew 9.8% in consumer currency and 7% in INR, reaching ₹3,349.11 crore, with net profit at ₹494.35 crore and operating profit up 8.3% year-over-year.

• India business, including Badshah Masala, grew 7.3% with 5.2% volume growth; rural demand outpaced urban, supported by e-commerce and quick commerce.

• International business contributed ~23% of sales, growing 18.4% in constant currency, led by Turkey, Egypt, MENA, SSA, and Bangladesh.

• Focus on innovation, digital transformation, and sustainability, with recognition in the S&P Sustainability Yearbook 2024 and coal-free operations.

• Board approved unaudited results and key management changes, including new director appointments and ESOP allotments.

Financial highlights

• Gross margin expanded by 120 bps, operating margin rose to 19.56%, and EBITDA margin improved to 23.4%.

• Net profit margin increased to 14.76%, with basic and diluted EPS at ₹2.82.

• A&P expenditure rose 16%, with digital media spend exceeding 30% of total A&P.

• Debt-equity ratio improved to 0.13, and inventory turnover increased to 15.84.

• Quick Commerce channel grew 70%, now 30-35% of e-commerce sales, with higher margins.

Outlook and guidance

• Expect continued volume growth, muted price increases (~2%), and further rural recovery supported by favorable macroeconomic indicators.

• Margin improvement anticipated if deflationary trends persist, with most gross margin gains reinvested in media.

• Emphasis on innovation, market penetration, and digital transformation to drive future growth.