afaqs! news bureau

Dabur spends Rs 244.5 cr on ads in Q3FY24; records 36% YoY growth

The FMCG brand has reported a consolidated net profit of Rs 514 crore for Q3FY24.

FMCG company Dabur spent Rs 244.5 crore on advertising and promotional expenditure in Q3FY24. In the same quarter the company recorded an outflow of Rs 179.6 crore in FY23.

Revenue from operations stood at 7% growth of Rs 3,255 crore, driven by steady performance of Home & Personal care and Food & Beverages businesses. Revenue stood at Rs 3,043.2 crore in Q3FY23. The Q3 revenue growth stands at 10% on constant currency basis.

Dabur’s India Business ended the third quarter with a volume growth of 6%. Operating profit for the quarter marked a 9.5% jump. Consolidated net profit for the quarter marked a 8% jump to Rs 514.2 crore, up from Rs 475.9 crore a year earlier. Advertising spends for the quarter marked a 30% rise in the standalone business.

Dabur’s Digestives business ended the quarter with 15% growth while the Ayurvedic Ethicals business grew by nearly 7% in Q3. Dabur’s Shampoo and Post-Wash category reported a 11% growth. The Toothpaste business ended the quarter with an industry leading over 8% jump, backed by Toothpaste volume growth of 5%.

The Home Care business reported a 7% growth while the Beverages business ended the quarter with a 7% growth. Foods business, including Badshah, ended the quarter with a 22% growth.

“Moderating inflation coupled with buoyant consumer sentiments and our focussed investment in distribution footprint expansion in rural India helped demand from the hinterland bounce back for Dabur. Rural demand for Dabur grew 200 bps ahead of urban. We have also stepped-up investment behind our brands to drive competitive volume growth, reflected in our higher advertising spends during the quarter,” said Mohit Malhotra, chief executive officer, Dabur India.

Additionally, Dabur’s International business reported a growth of 11.7% in constant currency terms. The Nigeria business grew by 52%, while the Turkey business was up 44% and the Egypt business ended with a 43% growth.

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