Dabur India (DABUR) Q4 03/04 earnings summary

Executive summary

• First full year as a focused FMCG business after the pharmaceutical demerger; revenue from operations rose 9.5% YoY to Rs 1,148 crore, while PAT rose 40.6% to Rs 101.2 crore.

• Strategic execution centered on five core brands, new product launches, stronger distribution and operating efficiencies; new product launches generated the highest revenue in a single year.

Financial highlights

• Revenue from operations was Rs 1,148 crore versus Rs 1,048.5 crore in 2002-03; total revenue was Rs 1,159 crore versus Rs 1,053.4 crore.

• PBDIT rose 24.1% YoY to Rs 136.1 crore from Rs 109.6 crore; PAT rose 40.6% to Rs 101.2 crore from Rs 72 crore.

• EPS increased to Rs 3.5 from Rs 2.5; interest outgo fell 42.2% to Rs 6.9 crore from Rs 11.9 crore.

• Consolidated sales from operations increased 12% to Rs 1,329.6 crore; consolidated PAT after minority interest rose 36.7% to Rs 106.5 crore.

Outlook and guidance

• Cautiously optimistic for 2004-05; adequate 2004 monsoon expected to support FMCG demand, while industry growth was expected to recover with a lag.

• Plans emphasized rejuvenating existing products, launching new products, expanding exports and growing international operations’ share of sales and profits.

• 2004-05 priorities included streamlining food manufacturing and procurement, focused advertising, institutional sales and new product offerings.