New Delhi: Demand trends saw sequential improvement in the June quarter, with rural growth picking up, local FMCG major Dabur said on Friday.
Additionally, with a normal monsoon forecast and the government's continued focus on macroeconomic growth, "we expect improvement to accelerate in the coming month," the company said in an update for the quarter ended June 30, 2024.
The domestic business is expected to register mid-single digit volume growth and its consolidated revenue is expected to register mid-to-high single digit growth during the first quarter of FY25, said Dabur, which owns brands such as Dabur Chyawanprash, Dabur Honey, Dabur. PudinHara, Dabur Lal Tail, Dabur Amla, Dabur Red Paste, Real and Vatika.
"In India business, the HPC (home and personal care) and healthcare segment is expected to grow in high single digits," he said.
Travel and out-of-home consumption were affected due to scorching summers, which had an impact on our beverage segment, although the food (culinary) category showed good momentum.
Its Badshah Masala business, which the company acquired two years ago, is expected to register "strong volume-driven growth" at 10%, the update added.
The company's international business, which typically contributes 25 to 30 percent of its total business, is expected to register strong growth in constant currency terms.
"However, severe currency depreciation in Turkiye and Egypt continued to impact translated growth," the company said.
Regarding raw material prices, Dabur said they remained stable during the June quarter.
"Gross margins are likely to see some expansion due to renewal price increases and cost-saving initiatives," he said, adding: "The business continued to invest heavily behind the brands, with A&P spending growing by above income".
"Accordingly, operating profit is expected to grow marginally ahead of revenue," the company said.
Additionally, with a normal monsoon forecast and the government's continued focus on macroeconomic growth, "we expect improvement to accelerate in the coming month," the company said in an update for the quarter ended June 30, 2024.
The domestic business is expected to register mid-single digit volume growth and its consolidated revenue is expected to register mid-to-high single digit growth during the first quarter of FY25, said Dabur, which owns brands such as Dabur Chyawanprash, Dabur Honey, Dabur. PudinHara, Dabur Lal Tail, Dabur Amla, Dabur Red Paste, Real and Vatika.
"In India business, the HPC (home and personal care) and healthcare segment is expected to grow in high single digits," he said.
Travel and out-of-home consumption were affected due to scorching summers, which had an impact on our beverage segment, although the food (culinary) category showed good momentum.
Its Badshah Masala business, which the company acquired two years ago, is expected to register "strong volume-driven growth" at 10%, the update added.
The company's international business, which typically contributes 25 to 30 percent of its total business, is expected to register strong growth in constant currency terms.
"However, severe currency depreciation in Turkiye and Egypt continued to impact translated growth," the company said.
Regarding raw material prices, Dabur said they remained stable during the June quarter.
"Gross margins are likely to see some expansion due to renewal price increases and cost-saving initiatives," he said, adding: "The business continued to invest heavily behind the brands, with A&P spending growing by above income".
"Accordingly, operating profit is expected to grow marginally ahead of revenue," the company said.
