Dabur India, a leading consumer goods company, has reported a decline in its second-quarter (Q2) results, citing weak urban demand and high inflation as major concerns. The company’s net profit fell 22.1% year-on-year (YoY) to ₹234.6 crore (approximately $33 million) for the quarter ended September 30, 2022. Revenue from operations decreased 10.1% to ₹1,514.4 crore (approximately $213 million).
Weak urban demand and inflation have impacted the company’s consumer goods business, which accounts for a significant portion of its revenues. Dabur’s CEO, Sunil Duggal, attributed the decline to a slowdown in sales of its key products, such as hair care and skin care products. The company’s operating margin also narrowed as a result of higher input costs and advertisement expenses.
Dabur’s Q2 results contrasted with the expectations of analysts, who had forecasted a stronger performance. Despite the challenges, the company has maintained its target of achieving 10-12% growth in revenue for the full year 2022-23. Looking ahead, Dabur plans to continue investing in its brand portfolio and focus on digital marketing initiatives to drive growth in a challenging market.
