Dabur India (DABUR) Q4 02/03 earnings summary

Executive summary

• FY2002-03 revenue from operations rose 5.9% to Rs.1,232.3 crore; PBDIT increased 11.8% to Rs.134.7 crore and PAT rose 32.1% to Rs.85.1 crore.

• Results outpaced a difficult FMCG market, supported by better procurement, operating efficiencies and lower interest costs.

• Strategic priorities included a proposed pharma demerger, FMCG business integration and greater investment behind five lead brands.

Financial highlights

• Revenue from operations was Rs.1,232.3 crore versus Rs.1,163.2 crore in FY2001-02; total income was Rs.1,240.6 crore.

• PBDIT rose to Rs.134.7 crore from Rs.120.5 crore; operating profit, excluding other income, grew 18.5%.

• PAT increased to Rs.85.1 crore from Rs.64.4 crore; basic EPS was Rs.2.98 and diluted EPS Rs.2.97.

• Material costs fell to 42.3% of sales from 44.3%; advertising spend rose 4% to Rs.160 crore, while commissions, discounts and rebates fell 7% to Rs.25 crore.

Outlook and guidance

• FY2003-04 outlook was cautiously positive; performance above peers was expected if the monsoon was normal, while market recovery remained uncertain.

• Planned FMCG launches included shampoo, cooling and mass-market hair oils, Vatika skin care, and new Chyawanprash packaging, Pudin Hara variants and Hajmola variants.

• A Jammu personal-care plant was expected to be commissioned in FY2003-04; the new site was selected to access fiscal incentives.

• Pharma planned initial US ANDA filings and applications for US FDA approval for the UK plant and Kalyani API facility.