Dabur India (DABUR) Q4 00/01 earnings summary

Executive summary

• FY00/01 sales grew 11.9% to Rs.1,166.5 crore, nearly double the FMCG industry’s ~6% value growth; profit after tax excluding non-recurring income rose 39.2%.

• Stronger product mix, lower interest costs and purchase efficiencies supported profit growth; working-capital days fell from 82 to 66 and ROCE rose to 18.4% from 14.3%.

Financial highlights

• Sales reached Rs.1,166.47 crore versus Rs.1,042.59 crore in FY99/00; total income including other income was Rs.1,185.34 crore.

• Reported profit before tax was Rs.85.17 crore and profit after tax Rs.77.63 crore; adjusted PAT excluding extra-ordinary income was reported at Rs.78.23 crore in the directors’ report.

• Other income declined to Rs.18.87 crore from Rs.34.19 crore, while financial expenses rose to Rs.29.66 crore from Rs.25.11 crore.

Outlook and guidance

• Future growth focus: product and process innovation, affordable launches, stronger brand orientation and offerings tailored to younger consumers.

• Operational priorities include further improvement in working capital, ROCE and EVA; Dabur Foods was expected to break even in FY01/02.

• Oncology formulation production at the UK subsidiary was expected to begin by year-end 2001, supporting entry into European and US markets.