Dabur expects low single digit revenue growth, 'flattish' operating profit in Q3 FY2025

Dabur India Ltd expects its consolidated revenue for the third quarter of the current financial year to grow in low single digits, the company said on Friday. In a regulatory filing, Dabur said the operating profit growth for the quarter is expected to remain flat as the FMCG major faced inflationary pressures in some of the segments.

"In Q3, inflationary pressures were witnessed in some segments which were partially mitigated through tactical price increases and cost-efficiency initiatives," the company said. "We anticipate flattish operating profit growth in Q3."

Dabur highlighted that rural demand continued to outpace urban demand during the quarter ended December 31, 2024.

"While general trade was still under pressure, alternative channels like modern trade, e-commerce, and quick commerce continued to post strong growth," it added.

The domestic home and personal care (HPC) segment is projected to grow in mid to high single digits, while the healthcare segment is likely to remain flat due to the delayed onset of winter, according to the company.

While the beverages portfolio saw muted growth, the culinary business, including brands like 'Hommade' and 'Badshah,' delivered strong double-digit growth.

Dabur's international business is expected to post double-digit growth in constant currency terms, led by strong performance in markets such as the Middle East and North Africa (MENA), Egypt, Bangladesh, and the US.

"With improving macroeconomic indicators, we expect FMCG growth to revive and sequential improvement in demand going forward," it said.

Dabur shares were trading at ₹524 on Friday, up over 2% from the previous close.