Homegrown FMCG company Dabur India today reported a consolidated net profit of 5 per cent to Rs 357.3 crore as against Rs 340.2 crore a year earlier, for second quarter ending September 30th, 2016, for financial year 2016-17.
The company’s standalone revenue from Indian business marked a 2.3 per cent growth during Q2 at Rs 1,348.1 crore as against Rs 1,318.4 crore during the corresponding period last year.
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Dabur India’s standalone net profit for Q2 saw a 17.7 per cent growth during the quarter at Rs 268.7 crore, up from previous year’s Rs 228.20 crore.
The company posted total income of Rs 1,975 crore for the quarter.
“The overall business environment continued to be challenging with consumer demand remaining slack in India while overseas geographies like the Middle East and Africa hit by worsening geopolitical situation. We continue to invest behind our brands and are confident of our ability to report profitable growth, going forward. Even in a tough environment, we have navigated the external business environment well and our domestic FMCG business ended Q2 of 2016-17 with a volume growth of 4.5 per cent,” said CEO Sunil Duggal was quoted as saying.
“The medium to long-term prospects, particularly for India, remain robust and we are optimistic that domestic consumer demand would gain pace in months to come, riding on good Monsoons and a slew of government initiatives announced recently. We are confident that our focused strategy and positioning as the ‘Science-based Ayurveda’ specialist will pave the way for future growth. We have lined up a flurry of many exciting initiatives and are committed to aggressively launch new products leveraging on our ayurvedic heritage and cutting edge science,” Duggal said.
During the quarter, Dabur announced its foray into the fizzy drinks market with the launch a range of fruit juice-based aerated drinks under the brand Réal VOLO.
Dabur also expanded its presence in the professional skin care market with the launch of two salon products – Oxylife Tan Clear and Oxylife Pro Youth Pure Oxygen Facial.
The Home Care business for Dabur, led by strong demand for the mosquito repellent brand Odomos and air freshener brand Odonil, ended the quarter with a near 20 per cent growth. The Foods business reported over 15 per cent growth during the quarter. The Skin Care business ended the quarter with around 7 per cent growth.
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