Dabur India reported a strong growth in Q2 of FY21, backed by sustained efforts in driving demand for its Ayurvedic Healthcare, Hygiene and Nutrition products, coupled with strong innovation to meet the emerging consumer needs in the wake of the Covid pandemic. Dabur ended Q2 FY21 with a 13.7% growth in Consolidated Revenue at Rs 2516 cr vs Rs 2212 cr (YoY). This is the highest Revenue growth reported by the Company in the last couple of years. Consolidated Net Profit for Q2 FY21 surged 19.5% to Rs 481.7 cr vs Rs 403 cr (YoY). Dabur's India FMCG Business led the growth with a 19.8% surge, with an underlying FMCG Volume Growth of 16.8% during the Q2 FY21. Dabur's Standalone Net Profit grew 20.6% to Rs 392.7 cr as against Rs 325.5 cr (YoY).

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Highlights of Q2 FY21 Financials of Dabur India:

1) India FMCG business recorded a growth of 19.8% on the back of volume growth of 16.8%
2) International Business reported 5.5% growth in Rs terms (CC growth of 3.5%)
3) Consolidated Operating Margin saw a growth of 16.3% and the margin saw an improvement of 50 bps, reaching 22.6% in Q2 FY21
4) Standalone Operating Profit saw a growth of 19.0% and the margin saw an improvement of 22 bps , reaching 23.5% in Q2 FY21
5) Consolidated PAT grew by 19.5%
6) Consolidated PAT margin saw an improvement of 93 bps, to touch 19.1% in Q2 FY21
7) Standalone PAT increased by 20.6%

Management said that while Covid-19 continues to impact people around the world, Dabur India Ltd's strategic business transformation exercise to develop and implement aggressive growth strategies in the core business areas and successfully address the emerging challenges helped the company deliver a healthy topline growth accompanied by an expansion in Margin. Their domestic Healthcare business reported a strong 49% growth, with the recent consumer relevant innovations contributing to around 5-6% of Revenue. International Business has also staged a smart recovery and reported a growth of 5.5% despite the key GCC (Gulf Corporation Council) market continuing to face macroeconomic headwinds.

Dabur India continued to focus on strengthening its core Healthcare portfolio with the introduction of new innovations, coupled with heavy investments behind its Power Brands and expanding its distribution might. This has enabled the Company to grow ahead of categories and gain market share across the portfolio. As Dabur continued to move forward on its distribution expansion strategy in the hinterland, rural demand grew ahead of urban. Favourable Monsoon and enhanced stimulus announced by the Government as part of its overall thrust on boosting rural Economy is expected to further drive rural demand in the coming months. The e-commerce business for Dabur grew by over 200% in Q2 of 2020-21 and today has a saliency of 6% as compared to 2.1% a year earlier.

Healthcare, particularly the portfolio of immunity-boosting products, continues to be the outperformer for Dabur. This is also in line with strategy of focusing on the Consumer Health categories. The Home & Personal care business also reported a recovery, growing by high single digits, while the domestic Foods Business saw a strong revival with in-home consumption returning to near normal levels. However, this category was impacted by the continued closure of Hotels, Restaurants and Institutional businesses.

The Health Supplements business for Dabur reported a 70.8% growth during Q2 of 2020-21. Health Supplements recorded strong growth on the back of 2x sales of Dabur Chyawanprash and robust double-digit growth in Dabur Honey, market share in Chyawanprash category increased by 190 bps.

The Ayurvedic OTC range grew by over 56% while the Ayurvedic Ethicals business ended Q2 with an over 26% growth. While the traditional Skin Care business continued to face headwinds, the strong demand for newly launched Personal Hygiene products range helped the overall category end the quarter with an over 38% growth. Dabur's Oral Care Sales was up over 24% with its flagship Dabur Red Paste reporting strong double-digit growth. The Shampoo business, on the back of strong demand for Vatika Shampoo, grew by nearly 18% in Q2.

Dividend Payout:

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Continuing with payout policy, the Board has declared an interim dividend of Rs 1.75 per share, aggregating to a total payout of Rs 309.30 cr.

Dabur India's FMCG portfolio today includes nine Power Brands - Dabur Chyawanprash, Dabur Honey, Dabur Lal Tail, Dabur Honitus and Dabur PudinHara in the Healthcare space; Dabur Amla, Dabur Red Paste and Vatika in the Personal Care category; and Real in the Foods category.