Dabur Q4FY18 Concall Summary


Financial Highlights

Dabur Q4FY18 Financial Performance.png
  • Consolidated revenue from operations grew at 16.2%, with domestic growth of 11.1%
  • Domestic FMCG business had a growth of 10% driven by a growth of 7.7% in volume
  • PAT growth was 18.9% with operating margins growing by 140 basis points
  • Operating margins increased from 21.8% to 23.9%
  • A&P spends of domestic business saw increase of 19.1%; 10.8% on consolidated basis
  • CapEx for the FY19 is projected to be around Rs.250 crores to Rs.300 crores; Currently it is around Rs.240 crores

Category wise performance

 Healthcare and HPC

  • Healthcare and HPC verticals showed a strong growth
  • Healthcare vertical grew by 11.2% with health supplements growing by 14% due to double digit growth in Chyawanprash and Honey
  • There was an uptrend observed in the market shares of both categories
  • Dabur honey continues its strong brand equity base with more investments adding to its momentum


  •  This category grew by 7.2% due to the good growth in Hajmola tablets
  • The most trusted brand survey by brand equity reveals that there is enhanced visibility and ranking
  • This is mainly due to new variants, focused market inputs and distribution expansion

OTC and Ethical

  •  A growth of 8.8% was realized in this category
  • Products like Hanitus Madhuvaani and Dashmularishta Asaavs posted good growth; backed by marketing initiatives and activations
  • Growth in classical ethical portfolio due to medico marketing initiatives and on-ground activation

 Personal Care

  • Strong performance in healthcare and oral care has resulted in 10% growth in this vertical
  • Oral care grew by 11% with 13.7% growth in toothpastes
  •  Red gel, launched this FY, recorded good sales; Increasing penetration, aggressive marketing and visibility initiatives has led to an good performance of Red franchise
  • Blended growth of toothpaste reduced from 17-18% mark to 13-14% mark due to high competition; high margin brands have done well
  • Hair Oils category grew by 8.8%; expanded by around 60 basis points
  •  Shampoo grew by 31%; supported by focused marketing activities

Home Care

  • Muted performance due to the moderate performance of Odomos (lower incidence of mosquito borne diseases)
  •  Odonil and Sani Fresh accounted good growth
  • Skincare registered 8.5% growth driven by strong performance of Gulabari brand


  •  Moderate quarter; increased competitive intensity from value players and increased promotions across the board
  • Profitability margins increased on account of network optimization
  • Aggressive media spends, tactical consumer promotions and sampling being used to counter competition
  • Fruit drink sub brand ‘Koolers’ launched
  • Reduction in market share from 56% to 54% YoY; Overall Juice, Nectars and Still Drinks (JNSD) market share is consistent in 10% levels

International Performance

  • Constant currency growth of 16.8% in the quarter
  • GCC markets grew by 51%, led by 82% growth in Saudi Arabia; Egypt market grew by 38%
  • Currency translation impacted top line by 1%
  • SAARC business posted good growth led by Pakistan and Nepal
  • Recovery in the international business of 18% in the top line and 34% in the bottom line

Diidend announcement

  • Special dividend of Rs.5 per share announced apart from the final dividend of Rs.1.25 per share
  • Will entail additional payout of close to Rs.1100 crores out of surplus in the balance sheet
  • The company will retain Rs.2000 crores of cash post payout


  • There are price increases in several categories due to margin issues with regards to cost; these are not dramatic
  • Price increases in coconut oil, Odonil and Glucose; the company has the pricing power to increase prices in case of any inflation, especially due to the variation of oil prices
  • Margins in juices is pretty favorable as there is a decrease in the price of raw materials


  • Couple of small acquisitions done in South Africa
  • Looking for potential targets in India; did not come up well till the moment
  • With a cash reserve of over Rs. 2000 crores, the company has the ability and the resources to undertake acquisitions