- 09 Jan 2023
- ICICIdirect Research
DABUR EXPECTS TO REPORT CONSOLIDATED REVENUE GROWTH IN LOW TO MID-SINGLE DIGIT
DABUR - 480 Change: 4.15 (0.87 %)News: Dabur is expected to report consolidated revenue growth in low to mid-single digit. Dabur's India business is also expected to report low to mid-single digit revenue growth. Healthcare portfolio returned to positive growth trajectory but still impacted by high base of Covid. F&B business is continuing the strong growth trajectory with some moderation in growth. International business is expected to post double-digit revenue growth during the quarter in constant currency. However, due to currency headwinds in Turkey and Egypt, the reported growth in rupee would be impacted. Inflation started to cool off during the quarter. As a result, gross margins will be marginally better Sequentially but would continue to see 200-250 bps contraction on YoY basis
Views: Though Dabur has seen strong growth during Covid period due to strong performance of healthcare portfolio & its aggression in foraying in newer categories, growth rates have moderated in the last few quarters due to sluggish rural demand conditions with margin continuing to remain lower due to adverse currency movement in international businesses. However, cool off in commodities prices is likely to boost demand conditions in rural regions in next few quarters
Impact: Neutral