Dabur Flags Demand Pickup In April-June, But Beverage Sales Hit By Weak Summer

Dabur India Ltd. said Friday that demand in the fast-moving consumer goods sector picked up sequentially in the June quarter, with urban markets driving a recovery in volume growth. However, the company expects its consolidated revenue to grow in low single digits for the quarter due to muted performance in its beverages segment, which was hit by unseasonal rains and a short summer.

The company said consolidated operating profit growth may slightly lag revenue. Still, some products performed well — Dabur’s Activ juices and coconut water products are likely to post mid-teen growth. Core brands such as Dabur Red Toothpaste, Odonil, Odomos, and Gulabari are expected to post strong growth and gain market share.

In healthcare, Dabur Honey, Honitus, and Health Juices are seen reporting double-digit growth, with Honitus expected to rise over 40%.

Dabur's international business likely grew in double digits in constant currency terms, led by markets in West Asia, North Africa, Turkey, Bangladesh, and the US.

The company said it remains optimistic about future quarters due to the expected above-normal monsoon, easing inflation, strong rural income prospects, and supportive government measures.