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Dabur spends Rs 183.65 crore on ads in Q4FY24, records 21.09% growth YoY
The company has been investing in growing the rural footprint, which has helped rural demand for its brands grow ahead of urban.
Science-based ayurveda company Dabur India has announced its financial results for the quarter ended March 31, 2024. It spent Rs 183.65 crore in ad spends compared to the corresponding quarter last year, where it spent 151.63 crore, marking a 21.09% rise. Also, it spent Rs 244.54 crore in FY23.
For the year ended March 31, 2024, Dabur India spent Rs 849.06 crore in ad spends compared to March 31, 2023, where it spent Rs 640.27 crore, marking a 32.6% surge.
Dabur India's quarterly net profit surged by 16.2% to Rs 350 Crore, up from Rs 301 crore a year earlier.
“We've ended the year with a steady performance, underscoring the power of the Dabur's brands. We have been investing heavily behind our brands, which increased by 33%, to drive demand and also sustain the growth momentum. This has helped us deliver steady sales and profit growth in the fourth quarter despite multiple headwinds. We continued to execute on our strategic playbook by driving operational excellence, delivering innovative and premium products, and expanding our retail footprint to build the foundation for long-term profitable, sustainable growth,” said Mohit Malhotra, chief executive officer, Dabur India.
The company's mosquito repellent brand Odomos reported a 677bps gain in market share, while Chyawanprash reported a 138bps gain and the market share on its Hair Oil market saw a 115bps increase. Honitus also marked a 114bps market share gain while its brands carved a 53bps increase in the Juices and Nectars category.
Dabur has been investing in growing the rural footprint, which has helped rural demand for its brands grow ahead of urban. Alongside, it has expanded its product basket in the rural market with the launch of newer affordable and rural-specific packs across categories to feed these markets and push demand growth.
The company has also invested in consumer activations in the hinterland to better reach out to consumers, giving them an opportunity to touch, feel and experience Dabur's products.
“Our rural coverage during the year expanded by 22,000 villages to 122,000 villages. Dabur’s rural distribution has, in fact, been the highest in the industry, giving us a distinct advantage and helping us drive rural growth. These ahead of curve investments have resulted in our rural business growing 400 bps ahead of urban,” added Malhotra.