HQ Team
January 6, 2023: Dabur India, an ayurvedic and natural healthcare company, forecasts a low to mid-single-digit revenue growth for the third quarter ending December 31 due to weak demand trends.
Rural markets remained under pressure, and growth was further accentuated by the late onset of winter in north India, according to a BSE filing by Dabur.
“The adverse currency movements in international business and inflation will lead to near-term impact on operating margin, which is expected to be lower by 200-250 bps as compared to Q3 FY22.”
Due to the challenging macroeconomic environment and muted category growths in the quarter, Dabu’s India business may report low to mid-single-digit revenue growth. According to the statement, the healthcare portfolio returned to a positive growth trajectory, still navigating the high bases of the pandemic.
Festive season
The food and beverages business continued to trend at robust levels. During the quarter, F&B’s growth will see some moderation on account of the early onset of the festive season.
Continuing the trend of double-digit CAGRs of the business in H1 FY23, the 3-year CAGRs in this quarter will be in the high single digits for home and personal care and healthcare and double digits for food and beverages.
According to the filing, the organized channels of modern trade and e-commerce continued to report double-digit growth.
Rural markets showed early signs of recovery towards the end of the quarter and could be further bolstered by the upcoming harvest season and expected to spend by the government.
Global business is expected to post double-digit revenue growth during the quarter in constant currency. Currency headwinds in Turkey and Egypt may impact growth.
During the fiscal year ended 2022, Dabur recorded revenue from operations of INR 108 billion and consolidated profit after tax of INR 17 billion.
