Dabur India has reported a 32.61% increase on a YoY basis in its spending on Advertising and Publicity this fiscal year as it spent Rs 640.27 crore in FY23 and Rs 849.06 crore in FY24.
Continuing similar trend on a quarterly basis, the FMCG major’s expense on Advertising and Publicity also ballooned 21.12% YoY with the company spending Rs 183.65 crore on the same in Q4FY24, as opposed to Rs 151.63 crore it had spent on the same in the corresponding quarter in FY2023.
The total expenses of the science-based ayurvedic company, inclusive of the ad spends, in Q4FY24 stood at Rs 2,490.43 crore, which is 3.68% higher than Rs 2,402.08 crore it spent in the corresponding period, last fiscal year.
As compared to FY23 wherein its total expenses stood at Rs 9,754.97 crore, the company’s total expenses in FY24 shot up 7.92% to Rs 10,527.17 crore.
However, the FMCG major’s Revenue from Operations went down 5.11% on a year-on-year basis from Rs 2,677.80 crore in Q4FY23 to Rs 2,814.64 crore in Q4FY24. On a yearly basis, the same stood at Rs 12,886.42 crore in FY24 which was 7.61% higher from its previous fiscal’s Rs 11,975.28 crore.
As a result, the company’s Total Income, comprising Revenue from Operations and Other Income, stood at Rs 2,943 crore in the fourth quarter of FY24, up 5.18% from Q4FY23’s Rs 2,798.52 crore. Compared to FY23, wherein the FMCG major amassed a sum total of Rs 11,975.28 crore, the numbers grew 7.61% to touch Rs 12,886.42 crore in FY24.
Taking into consideration all of the above, it is clear that while Dabur India registered a profit of 6.46% in FY24 as its P&L was positive with Rs 1,811.31 crore. In FY23, the same stood at Rs 1,701.33 crore.
The company registered a profit of 16.55% during the January-February-March period as the company amassed Rs 341.22 crore this year, juxtaposed to the previous fiscal year wherein it clocked in Rs 292.76 crore during the corresponding quarter.
As per the brand, what helped Dabur India report a steady performance during the fourth quarter and the full year 2023-24 are strong execution of Dabur’s Power Brand strategy, increased premiumisation, and distribution footprint expansion coupled with the benefits of its stringent cost reduction actions.
In its regulatory filing, Dabur India also mentioned that riding on strong demand for its highly differentiated product portfolio, Dabur’s Oral Care penetration now stands at 52% and that effectively, every second household in India is now a Dabur Oral Care Household as the three months and year ended March 31, 2024, saw the brand’s Oral Care business swell by 22% with the toothpaste business reporting a 23% jump.
Furthermore, it also pointed out that Dabur’s Digestives business, led by strong performance of Hajmola, ended the quarter up 16%; the Home Care business, on the back of strong performance of mosquito repellents, ended the quarter with a 7.5% growth; the Shampoo portfolio reported an over 6% jump during the quarter and Dabur’s Foods business, including Badshah, grew by 20.6%.
Commenting on the development, Mohit Malhotra, Chief Executive Officer, Dabur India, said, “We’ve ended the year with a steady performance, underscoring the power of the Dabur’s brands. We have been investing heavily behind our brands, which increased by 33%, to drive demand and also sustain the growth momentum. This has helped us deliver steady sales and profit growth in the fourth quarter despite multiple headwinds. We continued to execute on our strategic playbook by driving operational excellence, delivering innovative and premium products, and expanding our retail footprint to build the foundation for long-term profitable, sustainable growth.”
“Our rural coverage during the year expanded by 22,000 villages to 122,000 villages. Dabur’s rural distribution has, in fact, been the highest in the industry, giving us a distinct advantage and helping us drive rural growth. These ahead of curve investments have resulted in our rural business growing 400 bps ahead of urban,” he added.
