Dabur splurges on advertising in Q3 amid slowdown

MUMBAI: While FMCG companies have been reducing their ad and promotions spend in the third quarter of the current fiscal, Dabur India has considerably upped them.

The advertising and promotions spends by the FMCG giant has seen a whopping 46.9 per cent increase in the three-month period ended December, spending Rs 1.98 billion compared to Rs 1.35 billion a year ago.

The ad and promotion spent was 13.6 per cent of the sales during the quarter under review.

Dabur posted a net profit (after extra ordinary item and minority interest) of Rs 1.73 billion, up 11.9 per cent, compared to Rs 1.54 billion in the corresponding quarter of the previous fiscal.

The hair care category reported a growth of 19.6 per cent in Q3 FY’12 while the shampoo category witnessed revival with growth of four per cent. The home care category grew 18 per cent and the oral care segment 11.6 per cent with toothpastes growing by 14.4 per cent.

Health Supplements recorded a growth of 13.5 per cent during the quarter as digestives grew at a robust 19.3 per cent in the quarter under review.

The company also made a couple of overseas acquisitions with Hobi Group and Namaste Laboratories where sales grew by 44 per cent and 16 per cent respectively.

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