According to Dabur India Chairman Mohit Burman, the company now has 17 brands that are worth above Rs 100 crore
Dabur India ended the 2022-23 financial year with a consolidated revenue of Rs 11,529.9 crore, up 6% from Rs 10,888.7 crore in 2021-22. The company’s net profit for the full year stood at Rs 1,707.1 crore.
In its annual report, Mohit Burman, Chairman, Dabur India, has highlighted that the company has a portfolio of brands worth Rs 23 billion, and brands with sales greater than Rs 100 crore.
“The year 2022-23 saw 5 brands joining this list. In all, we now have 17 brands that are above Rs 100 crore but lesser than Rs 500 crore in size; 2 brands that are over Rs 500 crore but less than Rs 1,000 crore in size, and another 4 brands that have a turnover of more than Rs 1000 crore.”
Burman further said that despite an uncertain macro climate he was confident about the resilience of Dabur’s strategy and business construct. “Our power brands continue to fuel the company’s growth. We see significant opportunities ahead of us and believe that our investments in building a strong supply chain, manufacturing infrastructure and an enduring portfolio will enable us to capture these opportunities. We will continue to make sustained efforts to drive demand for our brands by enhancing our rural footprint, rolling out premium, consumer-centric innovations in urban India and ploughing investments behind our power brands.”
FY 2022-23 saw Dabur’s advertisement and publicity spends decline by 17.7%. The company spent Rs 640.3 crore as compared to Rs 777.9 crore in the previous financial year.
The company has said the advertisement and publicity expenditure saw a decrease from 7.1% to 5.6%, primarily on account of optimization and a further shift towards cost-effective digital media.
Mohit Malhotra, Chief Executive Officer, Dabur India shared that in FY 2023, the company experienced a material inflation rate of approximately 12%. “To mitigate this impact, we implemented price increases and initiated cost-saving measures. However, despite these efforts, we did observe some contraction in gross margins.”
He also said that fortunately, they are now witnessing a reversal in the commodity cycle, resulting in reduced prices for most of its key commodities, with the exception of the F&B basket. This development allows the company to anticipate an expansion in gross margins for the current year.
“This expanded gross margin will be allocated in two primary ways. Firstly, a portion will be allocated towards advertising and promotion (A&P) investments, which have experienced some moderation due to high inflation. Secondly, the remaining portion will contribute to gradual improvement of our operating margin.”
He also said that the company was embarking upon a host of cost-saving initiatives to drive efficiencies across functions – namely supply chain, procurement, packaging and indirect overheads.
“These measures coupled with the moderation in inflation, provide a positive outlook for Dabur, allowing us to capture potential cost advantages and enhance our financial performance,” the CEO said.
