Dabur India Q3 PAT up 15% at Rs 242.88 cr; ad spend up 23.22% at Rs 289.62 cr

BENGALURU: One of India’s largest Fast Moving Consumer Goods (FMCG) companies, Dabur India Limited (Dabur) reported a 28.80 per cent jump in year-to-date (YTD) profit to Rs 678.63 crore as compared to the Rs 527.87 crore in the corresponding nine month period of last year. Advertising and Publicity expense during the current nine month period at Rs 779.21 crore was 19.6 per cent more than the Rs 645.06 crore in the corresponding period of FY-2013.

PAT for Q3-2014 at Rs 242.88 crore was 15 per cent more than the Rs 211.11 crore in the corresponding quarter of last year, but was (2.75) per cent lower than the Rs 249.74 crore of the immediate trailing quarter. During FY 2013, Dabur reported PAT of Rs 763.42 crore.

Dabur reported operating revenue of Rs 904.28 crore in Q3-2014, 16.8 per cent more than the Rs 1670.32 crore of Q3-2013 and 8.9 per cent more than the Rs 1748.81 crore of Q2-2014. During the nine month period that ended 31 December, 2013 Dabur reported operating revenue of Rs 5304.19 crore which was 14.9 per cent more than the Rs 4615.29 crore of the corresponding period of last year.  Operating revenue for FY 2013 was Rs 6146.38 crore.

Dabur reported Total expense for Q3-2014 at Rs 1637.26 crore which was 17.2 per cent more than the Rs 1397.28 crore in Q3-2013 and 13 per cent more than the Rs 1448.56 crore of Q2-2014. YTD, Dabur’s Total expense at Rs 4530.18 crore was 14.25 per cent more than the Rs 3965.12 crore of the corresponding nine month period of 2013. For FY 2013, Dabur’s Total expense was Rs 5266.06 crore.

Let us look at Dabur’s Advertisement and Publicity spends as percentage of Operating revenue and Total expense reported in Q3-2014:

In Q3-2014, Dabur spent Rs 289.62 crore towards Advertisement and Publicity (Ad & Pub) which was 15.21 per cent of Operating Revenue and 17.69 per cent of Total expense for the period. This Q3-2013 figure was 23.22 per cent more than the Rs 235.05 crore in Q3-2014. Its Q3-2013 Ad & Pub spend was 14.41 per cent of Operating revenue and 16.82 per cent of Total expense for the period.

Dabur’s q-o-q Ad & Pub spend figure of Rs 289.62 crore for Q3-2014 was 27.33 per cent more than Rs 227.45 crore of Q2-2014. The Q2-2014 figure was 13 per cent of Operating revenue and 15.7 per cent of Total expense.

The nine month period figure mentioned above as percentages of operating revenue and total expense are as follows:  YTD, Ad and Pub spend was 14.54 per cent of operating revenue and 17.03 per cent of total expense for the period as compared to the 13.98 per cent of operating revenue and 16.27 per cent of total expense of the nine month period that ended 31 December, 2013.

For FY 2013, Dabur’s Ad and Pub spend at Rs 836.98 crore was 13.62 per cent of operating revenue and 15.89 per cent of total expense for the year.

Category Growths as reported by the Company for Q3-2014

The Health Supplements business for Dabur was a key driver of growth during the quarter, reporting a strong 19.5 per cent surge. The air freshener business for Dabur, under the brand Odonil, continued to surge ahead with an over 27 per cent growth during the quarter. Dabur’s food business also reported a robust near 18 per cent growth. Its shampoo business ended the third quarter of 2013-14 fiscal with a strong 24.7 per cent growth. The toothpaste business grew by over 14 per cent while the skin care category reported an over 13 per cent growth during the quarter.

“We have delivered another quarter of strong volume-led growth. Dabur has been reporting strong and consistent performance despite intensifying competitive pressures and the challenging market environment being witnessed for some quarters now. Our focus on brand-building and market expansion programs coupled with a greater degree of innovation has helped Dabur sustain strong growth in the core categories, which have been significantly ahead of the market. Going forward, our focus will be on pursuing an aggressive and profitable growth strategy,” Dabur CEO Sunil Duggal said.

The quarter saw Dabur introduce a host of new products and variants, including the new Fem Fairness Naturals facial bleach range and Vatika Hibiscus hair care range.

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