Dabur India Q2 net profit down; To acquire 51% stake in Badshah Masala

However, its revenue from operations grew 6 percent. 2,986.49 crore during Q2FY23 2,817.58 crore was recorded in Q2FY22. Q2 revenue growth stood at 8.5% on a constant currency basis. Consolidated revenue for the quarter reported a 3-year CAGR of 10.5%.

The company said in a regulatory filing that it continues to demonstrate the agility and resilience to deliver steady organic growth in an environment that remains challenging, marked by unprecedented inflation and the resulting impact on consumption.

“While the challenging economic environment remains a concern and impacts purchasing power, we are seeing green shoots of recovery with the onset of the festive season. The impact of inflationary pressures in rural markets is more pronounced in rural markets. This was, with demand increasing in urban areas. Market for the first time in five quarters. However, we are hopeful to report a smart recovery in rural demand in the coming quarters and we are looking forward to increasing our rural footprint by adding around 9,000 villages in Q2. To take our total coverage to over 100,000 villages by 2022-23, Mr. Mohit Malhotra, Chief Executive Officer, Dabur India Limited said. For.

Dabur is focused on creating shared value and is plowing higher investments in capital expenditure, digitization and sustainability. Dabur has made rapid progress on the ESG front and has set ambitious targets going forward. Dabur became the first Indian consumer goods company to become 100% plastic waste neutral in 2021-22. “There is no one to rest on our past achievements, this year we aim to become plastic waste positive by collecting, processing and recycling 35,000 metric tonnes of post consumer plastic waste across India. We are circular in the value chain. Apart from achieving a positive balance by 2030, becoming water positive by 2030 and carbon neutral by 2040, Mr. Malhotra said.

Dabur’s brands have increased market share in their 95% product range ahead of competition. Dabur registered a market share growth of 410 bps in the juices and amrits category, while our market share in the digesta segment grew by 270 bps. Chyawanprash’s market share increased by 120 basis points, while our market share for shampoo improved by 40 basis points. Dabur’s market share for hair oils rose 20 basis points. Dabur’s strategy remains on innovation, with new releases accounting for about 4% of sales.

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Dabur’s Foods and Beverages division posted a strong growth of 30%. While the Foods business posted a growth of 21%, the Beverages business ended the quarter with a spike of over 30%. The Home Care segment witnessed a growth of around 21%, while the Toothpaste segment grew by over 11% for the quarter due to the successful performance of our iconic Dabur Red Paste. The shampoo and after-wash business grew 9% during the quarter. Additionally, Dabur’s OTC Ayurvedic division showed a quarter-on-quarter growth of over 9%. Dabur’s international trade registered a growth of 12.3% in constant currency terms, driven by significant growth in constant currency in Egypt (23%), Turkey (86%) and Nepal (25%).

The Board of Directors of Dabur India Limited has declared an interim dividend of 250% for 2022-23. “Continuing our payment policy, the Board has declared an interim dividend of 2.50 per share, the sum of the total payments 442.94 crore,” said Mr. Mohit Burman, Chairman, Dabur India Limited.

Dabur India Limited announced that it has signed definitive transaction agreements to acquire 51% stake in Badshah Masala Private Limited. Dabur’s strategic objective is to grow its food business 500 crore in three years and developed into new adjacent categories, which is in line with this acquisition. It also marks the introduction of Dabur in the Indian market for branded spices and seasonings, which are priced higher. 25,000 crores. With Badshah Company 1,152 crore, Dabur is acquiring 51% stake in it 587.52 crore, less proportionate loan as on closing date. As per the projected financial data for FY2022-23, it has a revenue multiplier of around 4.5x and an EBIDTA multiplier of about 19.6x.

Announcing the acquisition, Mr. Mohit Burman, Chairman, Dabur India Ltd. said: “The Indian Spices and Spices category is a large and lucrative market. Badshah Masala is one of the major players in this segment. Our investment in Badshah Masala is part of this business. This acquisition will accelerate our growth strategy as we continue to build our food business. We will use our international market presence to grow this business globally. intend to take advantage of.”

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Dabur India Limited said, “The transaction is expected to be cash EPS neutral in the first year and accretive thereafter. The acquisition is expected to be completed within this financial year. As per our agreement, we will be able to liquidate the remaining 49 percent after 5 years. % shareholding will be acquired.” Group Director Shri PD Narang said.

Mohit Malhotra, Chief Executive Officer, Dabur India Limited, said: “The branded spices market in India is growing in healthy double digits, led by rising consumption, upgradation from non-branded to branded and increasing shift to regional flavors across states. priority. The market is dominated by regional players. And holds significant potential for future growth. Dabur has an existing foods portfolio and sees ground and blended spices as a good addition to this portfolio. Badshah Portfolio will benefit from Dabur’s wide distribution reach. We look forward to unlocking further synergies and market opportunities to realize the full potential of Badshah Masala.”

Hemant Jhaveri, Managing Director, Badshah Masala Pvt Ltd said: “We are delighted to enter into a strategic partnership with Dabur. Dabur stands for Trust and Heritage and joining hands with Dabur will help steer Badshah’s future growth potential on a strong trajectory. Our companies are great. This transaction will enable us to accelerate our growth by adding our products to Dabur’s wide portfolio to meet the needs of consumers across all geographies.”

Mr. Ajay Shah, Advisor, Badshah Masala Pvt Ltd said: “This strategic investment of Dabur brings together two strong Indian brands. The deal is growth oriented, mutually complementary, value addition and beneficial to both the companies.”

Dabur India shares closed at today’s level 532.50 each, down 0.81% from the previous close 536.85.

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