Dabur Projects Mid-Single Digit Revenue Growth in Fourth Quarter

Dabur Expects Faster Operating Profit Growth in Q4 Amid Sturdy Demand

Indian consumer goods maker Dabur is anticipating a significant increase in its fourth-quarter operating profit, outpacing revenue growth. The company is expecting revenue to rise in mid-single digits, driven by robust demand in the domestic market. However, its international business is expected to experience slower growth in low single digits due to the ongoing Middle East conflict, which has disrupted demand and supply chains.

The conflict has had a notable impact on Dabur's international operations, but the company is taking proactive measures to mitigate any potential effects on its operations and cost structure. A consumption tax cut in India last year had a positive impact on demand for Dabur's products, such as toothpaste and hair oils. This boost in demand is expected to continue in the coming quarters, as 60% of its portfolio that was previously taxed at rates of 12% and 18% are now taxed at 5%.

Dabur's food and beverages business saw a sequential improvement in the quarter, but is expected to register low-single-digit growth. In comparison to the previous quarter, Dabur's consolidated revenue grew by less than 1% to 28.3 billion Indian rupees ($305.5 million) in the fourth quarter last year.

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| Q4 Revenue Growth Comparison | | --- | --- | | Previous Quarter | 0.9% | | Current Quarter | <1% |

Note: The company's consolidated revenue growth is shown in the table above for comparison purposes.