Dabur’s Sept quarter revenue was hit by a steep appreciation in the currencies of several of the countries where the company sells its wares, it said.
Adjusted for currency and tax factors, revenue actually increased 8% on year, it said.
Q2 consolidated revenue came in at Rs 1,958.9 Crore as against Rs 1,981.6 Crore a year earlier.
Consolidated Net Profit for the second quarter stood at Rs 361.9 Crore as against Rs 357.3 Crore a year earlier.
“However, adjusted for GST and currency translation, the Comparable Consolidated Net Profit marked a 7.2% growth during the quarter while the Comparable Standalone Net Profit also reported a 7.2% growth,” it said.
“With the GST headwinds settling down and improved consumer offtake in domestic markets, Dabur India Ltd reported a strong surge in the domestic consumer growth during the second quarter of 2017-18 financial year. However, the overseas business performance was hit by a combination of steep currency devaluation in Egypt, Turkey and Nigeria, and the continued geopolitical disturbances in key geographies,” Dabur said.
“The overall business environment continued to be challenging particularly with the overseas geographies like the Middle East and Africa facing geopolitical headwinds,” said CEO Sunil Duggal.
“In India, the trade channels have largely normalized post the introduction of GST and consumer offtake has been reporting a steady growth,” it said.
He added that the company continued to invest behind its brands and was confident of reporting profitable growth going forward.
“We have navigated the external business environment well. Our Standalone Operating Profit for the quarter reported a 11.2% growth.
“The medium to long-term prospects, particularly for India, remain robust and we are confident that domestic consumer demand will gain pace in months to comem,” he said.
The company has been facing tough competition from Patanjali Ayurved, whose brand ambassador is Baba Ramdev.
However, Duggal said the expanded market was good news for the company.
“With consumer demand for nature and Ayurveda-based products on the rise, Dabur’s positioning as the ‘Science-based Ayurveda’ specialist will pave the way for future growth. We have lined up a number of exciting initiatives and are committed to aggressively launch new products leveraging on our Ayurvedic heritage and cutting-edge Science,” he said.
During the quarter, the Oral Care business reported 23% growth, while Skin Care and Salon business reported a 16% growth on year.
The Foods business ended the second quarter with around 12% growth and its Digestives segment reported a nearly 12% growth in Q2.
In constant currency terms, Dabur’s business in Egypt grew by 38%, Nigeria by 30% and Turkey by 27%. These businesses were, however, impacted in translation due to steep currency devaluations, it said.
It declared an interim dividend of Re 1.25 per share.