New Delhi, January 31st, 2017: The Board of Directors of Dabur India Ltd (DIL) met here today to consider the unaudited financial results of the company for the Quarter and nine-month period ended December 31, 2016.
The quarter ended December 31, 2016 was marked by a demonetisation-led liquidity squeeze that further impacted the already soft consumer demand across key FMCG categories. This coupled with the global headwinds in the form of currency fluctuations and rising cost of key inputs led to Dabur ending the third quarter of 2016-17 financial year with Consolidated Net Sales of Rs 1,847.7 crore. Net Sales for the same period of 2015-16 fiscal stood at Rs 1,967.5 Crore.
The Consolidated Net Profit for Q3 of 2016-17 financial year stood at Rs 293.7 Crore as against Rs 317.6 Crore a year earlier.
“The wholesale trade was severely impacted by demonetization and we had witnessed a massive amount of destocking across the entire trade channel. We were quick to respond to the emerging situation, adjusting our production plans, reducing inventory, tightening credit controls, pruning media spends while increasing consumer promotions and revamping our Supply Chain to increase focus on the relatively more resilient urban markets, particularly Modern Trade. We also stepped up direct distribution to tide over the situation. These proactive measures helped us arrest the slide and even report market share gains in key categories,” Dabur India Ltd Chief Executive Officer Mr. Sunil Duggal said.
Dabur’s packaged Fruit Juices & Beverages brands saw an over 5% gain in market share in Q3 of 2016-17, while the Mosquito Repellent brand Odomos saw its market share grow by over 4% in the mosquito repellent creams & lotions category. Dabur’s Toothpaste portfolio also gained around 0.7% share during the quarter. It’s Shampoo and Hair Oil businesses too gained share during the quarter.
“The overall business environment remained challenging in the third quarter with key geographies witnessing sharp currency devaluations. We are pursuing a prudent growth strategy and have taken steps to efficiently manage the emerging risks and challenges. Going forward, Dabur will continue to focus on brand-building activities and market expansion programmes that will pave the ground for future growth,” Mr. Duggal added.
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Dabur India Ltd