Dabur Q4 results today: FMCG major’s profit may rise in double-digit; margins likely to be stable

Dabur India – a leading fast-moving consumer goods company – is expected to report decent results for the January-March quarter of the financial year 2022-23 (Q4FY23) on Thursday, May 4, 2023.

According to Zee Business research, Dabur – whose popular brands include Dabur Chyawanprash, Dabur Honey, Real Fruit Juices, Hontius Cough Syrup among others – is likely to report a double-digit percentage growth in consolidated profit to Rs 383 crore, up 30 per cent year-on-year in Q4.

The FMCG company in the same quarter of the fiscal year 2021-22 had reported a consolidated profit of Rs 294 crore.

The earnings growth shall mainly be contributed to better volumes, likely double-digit international business growth, and stable gross margins.

While the top-line of ayurvedic products maker is expected to be in mid-single digit percentage growth as estimated by the company in its business update earlier in April.

The consolidated revenue may surge around eight per cent year-on-year to Rs 2,707 crore in the last three-month period of the previous fiscal as compared to Rs 2,518 crore in a year ago quarter.

According to the research, Dabur is estimated to report Rs 483 crore in earnings before interest, taxes, depreciation and amortisation (EBITDA) – a measure of the company's overall financial performance, a jump of seven per cent year-on-year.

On the back mid-single digit growth in profit before tax, Zee Business estimates that the company’s margin – a key measure of a business's profitability – may come nearly flat at 17.8 per cent from 17.95 per cent year-on-year.

The analyst pointed out that higher advertisement spending and currency depreciation will impact EBITDA margins.

However, they believe the company may post volume growth of 3-4 per cent during the March quarter earnings and gross margins are expected to improve this time from last quarter.

Factors to watch out for:

• Management commentary on rural demand
• Eye on market share and distribution network

Shares of Dabur India ahead of Q4 earnings tomorrow are flat with a positive bias at Rs 538.15 per share on the BSE. The stock in the last one year has been flat as compared to over eight per cent rise in the Nifty50 index.

Dabur India is also a world leader in Ayurveda with a portfolio of over 250 Herbal/Ayurvedic products. The company’s FMCG portfolio today includes nine distinct Power Brands.

Dabur Chyawanprash, Dabur Honey, Dabur Honitus, Dabur Pudin hara and Dabur Lal Tail in the Healthcare space, while Dabur Amla, Vatika and Dabur Red Paste in the Personal Care category; and Real in the Food & Beverages category.