- 03 Apr 2025
- ICICIdirect Research
DABUR INDIA RELEASED Q4FY25 PRE-QUARTER UPDATE PROVIDING THE OUTLOOK FOR DOMESTIC FMCG MARKET
DABUR - 488 Change: 4.10 (0.85 %)News: Dabur India released Q4FY25 pre-quarter update providing the outlook for domestic FMCG market. Consolidated revenues are expected to remain flat with India business expected to decline by mid single digit while Operating margins are expected to see contraction by 150-175bps due to inflationary pressure coupled with operating deleverage. The rural consumption remained resilient while urban consumption continued its slowdown. Modern and e-commerce trade channels continued to witness strong growth while general trade channel continued to lag. FMCG volumes are expected to be subdued for Q4. India Food business continued its momentum with double digit growth likely for the quarter. the International Business remained resilient and continued its double digit growth.
View: Overall Q4FY25 update of Dabur is muted. Mid-single revenue decline in India business was against our as well as street expectation of flattish to low single revenue growrh for India business in Q4FY25. Management in Q3 results concall indicated of mid-single digit revenue growth. Commodity Inflation and operating deleverage will continue to put toll on margins in the near term.
Impact: Negative