Dabur Sees Sequential Improvement in Demand Trends for June Quarter

Homegrown FMCG major Dabur witnessed a sequential improvement in demand trends in the June quarter, buoyed by rural growth and a forecasted normal monsoon. The company expects consolidated revenue to see mid-to-high single-digit growth. International business faces challenges from currency depreciation in Turkey and Egypt.

Homegrown FMCG major Dabur has reported a sequential improvement in demand trends during the June quarter, driven largely by increased rural growth. The company is optimistic, anticipating that a normal monsoon coupled with the government's focus on macroeconomic growth will further accelerate this positive trend in the coming months.

In its update for the quarter ending June 30, 2024, Dabur stated that its domestic business is projected to record mid-single-digit volume growth. Consolidated revenue is expected to rise in the mid-to-high single digits for Q1 FY25. The home and personal care (HPC) and healthcare segments are forecasted to grow in high-single digits.

Despite suffering from the impacts of scorching summer temperatures affecting out-of-home consumption and its beverage segment, Dabur's food (culinary) category performed well. Their Badshah Masala business is predicted to post strong volume-led growth in the high teens. International revenues, contributing 25-30% of overall business, are expected to see strong growth in constant currency terms, despite challenges from severe currency depreciation in Turkey and Egypt.

(With inputs from agencies.)