Dabur reported its Q2 results, highlighting a challenging demand environment characterized by high food inflation and a squeeze in urban demand. The company’s consolidated revenue for the second quarter of 2024-25 stood at ₹3,029 crore, a decrease of 5%.
In its standalone operations, primarily focused on the domestic market, revenue fell by 8.17% to ₹2,143.58 crore in the September quarter. CEO Mohit Malhotra noted that expanding Dabur’s rural presence to over 1.22 lakh villages has paid off, with rural demand exceeding urban demand by 130 basis points during the quarter.
Dabur’s international business showed resilience, growing by 13% on a constant currency basis in Q2. Notably, the Egypt division experienced an impressive 73% growth, while the MENA (Middle East/North Africa) region grew by 10% and Sub-Saharan Africa by 26%. The Badshah brand also saw a 15% increase in sales during the same period.
Consolidated revenue from the consumer care segment dropped 4.13% to ₹2,487.60 crore, and revenue from the food business declined by 13.45% to ₹467.39 crore. The retail segment also faced challenges, with revenue decreasing 5.9% to ₹28.11 crore.
Malhotra commented on the shift in consumer buying habits towards emerging channels like quick commerce, which has grown significantly, putting pressure on traditional General Trade. To adapt to these changing market dynamics and support distributor partners, Dabur proactively rationalized inventory in the General Trade, leading to a temporary decline in sales. However, this move is expected to benefit the business’s long-term health and pave the way for future growth.
Dabur India is known for its popular brands, including Dabur Amla, Dabur Vatika, and Real juices. Looking ahead, Malhotra expressed optimism about a recovery in consumer demand in both urban and rural markets. The company aims to strengthen its market position by investing in rural expansion and introducing consumer-focused innovations. To support this broader network, Dabur has launched affordable, rural-specific product bundles and is enhancing consumer engagement in rural areas.