Dabur share price down 3.2% on muted Q4 update
Dabur shares slumped after the Indian consumer goods company informed of a mid-single-digit revenue growth in its Q3FY23 result update on Thursday. The company shares were down by 3.25 per cent at ₹530.15 apiece on BSE in intraday trading today. The FMCG major didn’t perform well in the third quarter of the FY23 as well. Dabur reported a 5.49 per cent decline in its consolidated net profit in Q3FY23.
Dabur’s F&B business is expected to grow at strong levels and recur strong-double digit growth, said the company in its stock filing. It also hinted of growth in its Healthcare portfolio as well. However, Dabur’s HPC business continued to suffer as it is expected to report low single-digit-revenue growth on the account of slowdown in the personal care categories. The company showcased a mid-single-digit net profit in the last quarter of FY23.
“The demand trajectory across both urban adn rural markets in India has shown a slight improvement sequentially. Although, it falls short of a full recovery. While urban markets have returned to positive volume growth, rural markets still remain muted,” the company said in its filing.
The quarter under the review also saw Dabur consolidating Badshah Masala business.
The company’s international trade suffered due to currency headwinds in Egypt and Turkey. The FMCG major also informed of infusing money in its brands and restructuring distribution network for long term benefit.
The company also shed light upon its plan to continue investment in its Power brands, innovation, distribution and expansion.
In the third quarter of FY23, Dabur’s consolidated revenue jumped by 3.44 per cent to ₹3,043.17 crore from ₹2,941.75 crore a year ago. Its EBITDA (earnings before interest, taxes, depreciation and amortization) fell 2.7 percent to ₹620 crore.
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Ganesh
http://ganesh@finplay.inFinance enthusiast, Mutual fund expert.