Dabur increases ad spend by 5.49% in Q4 FY13

MUMBAI: Fast moving consumer goods major Dabur increased its spending on advertising and promotions for the the quarter ended 31 March as competitive intensity in the category continued to be high.

The FMCG giant ramped up its spending into the fourth quarter of FY13 with ad spends increased by a robust 5.49 per cent in Q4 FY13 when compared to Q4 FY12.

Dabur?s advertising and marketing expenditure in the fourth quarter of FY12 stood at Rs 1.82 billion which grew to Rs 1.92 billion in the fourth quarter of FY13 ended 31 March 2013. The percentage of total income dedicated to advertising saw a fall from 13.26 per cent in Q4 FY12 to 12.44 in Q4 FY13.

The company?s income for the period grew by 12.54 per cent on a year on year basis from Rs 13.72 billion in Q4 FY12 to Rs 15.44 billion in Q4 FY13. Its net profit grew by 18.13 per cent as the net profit in Q4 FY12 was Rs 1.71 billion compared to Rs 2.02 billion in Q4 FY13.

The Health Supplements business for Dabur - led by strong growth in Dabur Glucose & Dabur Honey - ended the fourth quarter with a 22.6% growth, while the OTC Health Care business reported a 16.7% growth. Dabur?s Perfumed Hair Oil business, led by Dabur Amla Hair Oil, ended the period with a 13% gain, while the Shampoo business ended the quarter with a 29.4% growth. The Home Care business reported a 33.3% growth while the Toothpaste category closed the quarter with a 15.8% growth. The Foods category - riding on continued demand for its packaged juices -- reported a 22.6% growth.

"The Bangladesh business reported a strong 57 per cent growth, while sales in Levant grew by 30 per cent and GCC markets by 20 per cent; shampoos, hair creams and toothpastes were the key growth drivers in the international markets," Dabur India director P D Narang said.

The annual figures reflect a growth from FY12, as the FMCG company increased its advertising spends by a hearty 26.81 per cent in FY13. Dabur?s advertising and marketing outflows increased from Rs 6.60 billion (FY12) to Rs 8.37 billion (FY13).

The total income from advertising also grew from 12.44 per cent in FY12 to a healthy 13.71 per cent in FY13. The FMCG?s income for the period also grew by 15.01 per cent on a annual basis from Rs 53.05 billion in FY12 to Rs 61.06 billion in FY13. And the new profit grew by a stellar 18.94 per cent, seeing it rise from Rs 6.44 billion in FY12 to Rs 7.66 billion in FY13.

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