Dabur shares decline 7% as FMCG major says Q4 operating profit margin to contract by up to 175 bps YoY; check details

The Q4 business update said that during Q4 (the January-March period), the rural market continues to be resilient and grows 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. Overall, FMCG volume trends continued to be subdued during the quarter.

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.

In India, the foods business comprising 'Hommade' and 'Badshah' continued to perform well and is expected to post double-digit growth. However, due to delayed and truncated winters and a slowdown in urban markets, India's FMCG business is likely to decline in the mid-single digits. As a result, Dabur's consolidated revenue is expected to be flattish during Q4 FY25.

The company further said that due to the impact of inflation coupled with operating deleverage, it anticipates the Q4 operating profit margin to contract by around 150-175 basis points year-on-year (YoY).

"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," the company added.