19 hours ago
Shares of Dabur India Ltd. were trading with losses of over 7% on Thursday, April 3, after the FMCG major shared its quarterly business update. Dabur said that FMCG volume trends continued to remain subdued during the fourth quarter.
Due to delayed and truncated winters, a slowdown in urban markets, and weakness in general trade, India's FMCG business is likely to decline in mid-single digits.
As a result, Dabur's consolidated revenue is expected to be flattish during Q4 FY25.
Furthermore, Dabur expects a 150-175 basis points contraction in Q4 EBITDA margins year-on-year due to the impact of inflation coupled with operating deleverage.
During Q4, Dabur's rural business continued to be resilient and grew ahead of urban markets.
In terms of channels, organised trade, including modern trade, e-commerce, and quick commerce, maintained their growth momentum, while general trade continued to be under pressure.
Key international markets, including the MENA region, Egypt, and Bangladesh, are likely to post strong performance, leading to robust double-digit growth in constant currency terms for the international business.
"We remain committed to driving profitable growth despite the current headwinds in demand. Our internal efforts, such as investing in brand building, enhancing go-to-market strategies, and increasing operational efficiency, will enable us to achieve this objective. Furthermore, we anticipate that the incentives outlined in the recent Union Budget will stimulate consumption and facilitate a recovery in the FMCG sector, which Dabur is well placed to capitalise on," Dabur said in a statement.
The company post-Q3 had said:
- Consumer sentiment has bottomed out
- Will only see improvement from here
Even post-Q2, they said, "We're expecting mid-high single-digit revenue growth in H2," which has been missed now, since it's flattish in H2.
Will they maintain this target given earlier? "Aspire to grow in mid-high single digits in FY26."
Shares of Dabur are currently trading 6.70% lower at ₹462.55. The stock is down 10% so far in 2025.
With inputs from Mangalam Maloo
