Dabur estimates low-single digit sales growth in Q3

Dabur India, which makes products ranging from honey to toothpaste, estimated its revenue rose in the low single-digit percentage range in the third quarter due to subdued demand for healthcare and beverage products, it said on Friday.

Analysts, on average, had expected revenue growth to pick up to 4.8% in the October-December quarter, according to LSEG data, from a 5.5% decline in the previous quarter, which was the first drop in quarterly revenue since 2020.

Dabur India, much like its peers in the sector, has struggled with the double whammy of increasing costs for raw materials and low consumer demand due to high inflation, especially in food prices.

The company said demand from rural consumers continued to rebound faster than in urban regions. It also said it partially mitigated high input costs through price hikes and by cutting other expenses.

It estimated operating profit would be flat for the third quarter.

The company said revenue from its healthcare business, which accounted for about 31% of overall revenue last fiscal year, would likely be “flattish” due to a delayed winter.

It sells ayurvedic products for minor illnesses, such as coughs and colds, as well as immunity boosters.

Dabur India, which also sells the “Real” brand of fruit juices, said beverage sales were “muted”.

Revenue from home and personal care products, which include air fresheners and dishwashing liquids and is its biggest business, increased in the mid to high single-digit percentage range.

The company’s shares ended 2% higher on Friday ahead of the quarterly update. They slid 9% in 2024, the steepest drop in any year since 2008.