The FMCG giant’s half yearly ad spends for the current fiscal were also up 34.21% YoY to Rs 340.36 crore. In the corresponding period of FY23, the same stood at Rs 253.61 crore
In the second quarter of the current fiscal year, Dabur upped its ad spends by 40.35% on a YoY basis to Rs 172.99 crore.
In Q2FY23, the FMCG major had spent Rs 123.26 crore on advertising.
On a half-yearly basis too, the conglomerate upped its spending on advertising by 34.21% YoY as it allocated an ad budget of Rs 340.36 crore in H1FY24 as opposed to Rs 253.61 crore in H1FY23.
In the second quarter ended September 30, 2023, the company’s PAT also moved up 6.18% YoY to Rs 420.27 crore as against Q2FY23 wherein the same stood at Rs 395.81 crore.
However, when comparing the PAT of the company in H1FY24, which is Rs 797.94 crore to that of H1FY23, the FMCG major saw a single digit growth of 6.98% on a YoY basis.
In the first half of the previous fiscal year, the FMCG major had amassed Rs. 745.89 crore.
It is to be noted that the company’s Revenue from Operations also grew 2.98% YoY in Q2FY24 as Dabur clocked Rs 2334.40 crore during the quarter, as against Rs 2266.88 crore it generated during Q2FY23.
Similarly, on a half yearly basis, the company’s Revenue from Operations went up 5.29% YoY, from Rs 4446.61 crore in H1FY23 to Rs 4681.78 crore in H1FY24.
On the other hand, the totally expenses of the conglomerate also increased slightly by 2.52% on a YoY basis to Rs 1895.35 crore in Q2FY24. In the corresponding period of the previous fiscal, Dabur spent Rs 1848.81 crore.
In the half year ended September 30, 2023, the total expenses of the conglomerate were also up 5.35% YoY. In H1FY24, the conglomerate’s total expenditure summed up to Rs 3847.07 crore, whereas in H1FY23, the same amounted to Rs 3651.81 crore.
In its regulatory filing, Dabur also mentioned that the India FMCG volume growth was 3%, and along with Badshah, it stood at 5.8%.
“The India Business saw our key brands and products posting category-leading growths with market share gains across 90% of our product portfolio,” the company mentioned.
While Dabur’s Digestive business, riding on steady performance of its flagship brand Hajmola, grew by 18.1%, the Home Care business reported a 15.1% growth and the Ayurvedic OTC and Ethicals business grew by 8.1%.
“Our flagship toothpaste franchise Dabur Red ended the quarter with a high single-digit growth with continued market share gains. While the unseasonal rains in our key North Indian markets impacted the beverage business during the quarter, the Foods business ended with a 40.4% surge. The recently acquired Badshah brand reported a 16.4% growth during the quarter,” the company further added in its statement.
Commenting on the quarterly update, Mohit Malhotra, Chief Executive Officer, Dabur, said, “We have delivered steady Revenue and double-digit Operating Profit growth with improvement in gross margins led by moderating inflation. We believe we are on the right path with our strategic playbook. We remain focused on managing our business with agility, leveraging our strong distribution footprint while enhancing our margins, quarter after quarter.”
“We have witnessed a marked sequential improvement in urban demand, led by new-age channels. While the rural growth still lags urban demand, the gap has reduced. We are increasingly optimistic of the future as we are seeing green shoots of recovery in Rural sentiments. We will continue to invest behind our brands, distribution infrastructure and innovation to deliver volume-led profitable growth,” he added.
