{"id":155694,"date":"2023-11-02T10:53:01","date_gmt":"2023-11-02T14:53:01","guid":{"rendered":"https:\/\/44.250.171.167\/?p=155694"},"modified":"2023-11-02T10:53:03","modified_gmt":"2023-11-02T14:53:03","slug":"dabur-india-limited-q2-fy24-earnings-conference-call-insights","status":"publish","type":"post","link":"https:\/\/alphastreet.com\/india\/dabur-india-limited-q2-fy24-earnings-conference-call-insights\/","title":{"rendered":"Dabur India Limited Q2 FY24 Earnings Conference Call Insights"},"content":{"rendered":"<p><strong>Key highlights from Dabur India Limited (DABUR) Q2 FY24 Earnings Concall<\/strong><\/p>\n<ul>\n<li><strong>Financial Results<\/strong>\n<ul>\n<li>Revenue grew 10.4% in constant currency and 7.3% in INR terms to INR3,204 crores.<\/li>\n<li>International business grew 23.6% in constant currency and 10.4% in INR terms.<\/li>\n<li>India business ex-beverages grew 6% backed by 5% volume growth.<\/li>\n<li>Consolidated operating profit grew 10% excluding one-off legal costs.<\/li>\n<li>Gross margin expanded 300 bps on material cost reduction.<\/li>\n<li>Consolidated operating profit grew 10%, while consolidated PAT increased 14.1%.<\/li>\n<\/ul>\n<\/li>\n<li><strong>Segment Performance<\/strong>\n<ul>\n<li>Home care grew 15% led by Odomos and Odonil.<\/li>\n<li>Odonil growing faster than category growth of 20%.<\/li>\n<li>Gained market share in mosquito repellents, air fresheners, toothpaste and hair oils.<\/li>\n<li>Healthcare grew 5.4% with market share gains in Chyawanprash and honey.<\/li>\n<li>Digestives grew 18.1% driven by Hajmola.<\/li>\n<li>Beverages declined 10% due to uneven monsoon rainfall and new coconut water competitor Storia impacted market share.<\/li>\n<li>Investing in aseptic pet bottles to boost coconut water sales.<\/li>\n<\/ul>\n<\/li>\n<li><strong>Growth Drivers<\/strong>\n<ul>\n<li>Distribution reach expanded to 1.4 million outlets directly.<\/li>\n<li>Increased media investments by 43% to drive long-term growth.<\/li>\n<li>Innovation across categories and countries gaining market share.<\/li>\n<li>Onset of festive season expected to boost growth.<\/li>\n<\/ul>\n<\/li>\n<li><strong>Legal Issues<\/strong>\n<ul>\n<li>Lawsuit filed against US subsidiary Namaste Labs on product safety concerns.<\/li>\n<li>Allegations disputed; portfolio in question is less than 1% of revenue.<\/li>\n<li>1% of sales from relaxer portfolio affected by lawsuit.<\/li>\n<li>Building non-relaxer portfolio now 75-80% of business.<\/li>\n<li>Matter is sub judice with product liability insurance in place.<\/li>\n<li>The insurance covers a specific hourly rate for legal counsel, with any additional costs to be covered by the company.<\/li>\n<li>Discovery phase had higher costs of INR30-35 crores per quarter.<\/li>\n<li>Legal costs estimated at INR20-22 crores per quarter going forward for 2 plus years.<\/li>\n<li>No legal merit seen due to inconclusive study basis and confident in winning given past precedent and safety studies.<\/li>\n<li>Defense counsel costs incurred so far not recoverable.<\/li>\n<\/ul>\n<\/li>\n<li><strong>Advertising Spends<\/strong>\n<ul>\n<li>Ramping up ad spends in HPC categories like oral care and home care.<\/li>\n<li>Peak ad spend is 8-10% of sales; currently at 7.5-8%.<\/li>\n<li>Building brand equity and consideration set requires ad investments.<\/li>\n<li>Less ad spend needed for impulse purchases like food and beverage.<\/li>\n<\/ul>\n<\/li>\n<li><strong>Festive Season Impact<\/strong>\n<ul>\n<li>Diwali season shifted by 20 days versus last year.<\/li>\n<li>Loading of beverages and Chyawanprash got postponed to Q4.<\/li>\n<li>Expect lost Q2 sales to be recovered in Q4 with season shift.<\/li>\n<li>Seeing uptick in beverages and Chyawanprash sales in October and expects recovery in Chyawanprash in H2 with onset of winter.<\/li>\n<\/ul>\n<\/li>\n<li><strong>Margin Outlook<\/strong>\n<ul>\n<li>Benefited from input cost reductions in 2Q.<\/li>\n<li>Confident of maintaining guided 19.5% margin for the year.<\/li>\n<li>DABUR will try to better guidance despite legal costs of INR63 crores.<\/li>\n<\/ul>\n<\/li>\n<li><strong>Rural Recovery<\/strong>\n<ul>\n<li>Seeing gradual recovery in rural growth trends.<\/li>\n<li>Rural growth is ahead of urban, benefitting from distribution expansion and increasing penetration.<\/li>\n<li>Government measures driving rural demand.<\/li>\n<li>South India lagging most in rural recovery currently.<\/li>\n<\/ul>\n<\/li>\n<li><strong>International Business<\/strong>\n<ul>\n<li>Expecting double digit constant currency growth in H2.<\/li>\n<li>Situation in Middle East a potential headwind.<\/li>\n<li>Gross margins expanded 600 bps on lower costs.<\/li>\n<li>Depletion in costs to continue aiding margin growth.<\/li>\n<\/ul>\n<\/li>\n<li><strong>New Product Development<\/strong>\n<ul>\n<li>In the personal care industry, Cool King has achieved sales of around INR20 crores, while Dapper Red gel extensions have reached 25 crores in sales.<\/li>\n<li>In healthcare, the baby care range and advocacy team achieved INR50 crores turnover.<\/li>\n<li>In foods, coconut water in Tetra Pak reached INR20 crores sales, with additional capacity coming up.<\/li>\n<li>Fizz and pet bottle products have achieved around INR20-25 crores turnover each.<\/li>\n<\/ul>\n<\/li>\n<\/ul>\n","protected":false},"excerpt":{"rendered":"<p>Key highlights from Dabur India Limited (DABUR) Q2 FY24 Earnings Concall Financial Results Revenue grew 10.4% in constant currency and 7.3% in INR terms to INR3,204 crores. International business grew 23.6% in constant currency and 10.4% in INR terms. India business ex-beverages grew 6% backed by 5% volume growth. Consolidated operating profit grew 10% excluding [&hellip;]<\/p>\n","protected":false},"author":1767,"featured_media":154818,"comment_status":"open","ping_status":"closed","sticky":false,"template":"","format":"standard","meta":{"jetpack_post_was_ever_published":false,"footnotes":"","jetpack_publicize_message":"","jetpack_publicize_feature_enabled":true,"jetpack_social_post_already_shared":true,"jetpack_social_options":{"image_generator_settings":{"template":"highway","default_image_id":0,"font":"","enabled":false},"version":2}},"categories":[9825,6351,392],"tags":[10169,8157,8761],"class_list":["post-155694","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-earnings-call-highlights","category-consumer-stocks","category-earnings","tag-earnings","tag-healthcare","tag-personal-care"],"jetpack_publicize_connections":[],"jetpack_featured_media_url":"https:\/\/alphastreet.com\/india\/wp-content\/uploads\/2023\/10\/CC_Image_1.jpg","jetpack_likes_enabled":false,"jetpack-related-posts":[{"id":125340,"url":"https:\/\/alphastreet.com\/india\/key-highlights-from-dabur-india-q2-2022-earnings-results\/","url_meta":{"origin":155694,"position":0},"title":"Key highlights from Dabur India Q2 2022 earnings results","author":"Nishadkishore","date":"November 2, 2021","format":false,"excerpt":"FMCG giant Dabur India(NSE: DABUR) reported its second-quarter 2022 results today. The company reported consolidated revenue of \u00a0\u20b929.3 billion at a 12% increase year on year. Dabur recorded a total net profit of \u20b95.32 billion or \u20b92.85 per share compared to \u20b94.12 billion or \u20b92.72 per share in the previous\u2026","rel":"","context":"In &quot;Consumer&quot;","block_context":{"text":"Consumer","link":"https:\/\/alphastreet.com\/india\/category\/consumer-stocks\/"},"img":{"alt_text":"","src":"https:\/\/i0.wp.com\/alphastreet.com\/india\/wp-content\/uploads\/2021\/10\/Earnings-Coverage.jpg?resize=350%2C200&ssl=1","width":350,"height":200,"srcset":"https:\/\/i0.wp.com\/alphastreet.com\/india\/wp-content\/uploads\/2021\/10\/Earnings-Coverage.jpg?resize=350%2C200&ssl=1 1x, https:\/\/i0.wp.com\/alphastreet.com\/india\/wp-content\/uploads\/2021\/10\/Earnings-Coverage.jpg?resize=525%2C300&ssl=1 1.5x"},"classes":[]},{"id":143294,"url":"https:\/\/alphastreet.com\/india\/dabur-india-reported-improved-revenue-despite-slowdown-net-profit-declined\/","url_meta":{"origin":155694,"position":1},"title":"Dabur India Reported Improved Revenue Despite Slowdown; Net Profit Declined","author":"Hardik Bhandare","date":"March 17, 2023","format":false,"excerpt":"Dabur India Limited (NSE: DABUR) is a leading Indian consumer goods company that specializes in Ayurvedic healthcare and personal care products. 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The company had a net consolidated profit of \u20b92,930 crores with a growth of 12% on a yearly basis. Dabur had a net profit of \u20b9505 crores or \u20b92.85 per share compared to \u20b9483 crores or \u20b92.72 per share in the\u2026","rel":"","context":"In &quot;AlphaGraphs&quot;","block_context":{"text":"AlphaGraphs","link":"https:\/\/alphastreet.com\/india\/category\/infographics\/"},"img":{"alt_text":"","src":"https:\/\/i0.wp.com\/alphastreet.com\/india\/wp-content\/uploads\/2021\/12\/DaburQ222.jpg?resize=350%2C200&ssl=1","width":350,"height":200,"srcset":"https:\/\/i0.wp.com\/alphastreet.com\/india\/wp-content\/uploads\/2021\/12\/DaburQ222.jpg?resize=350%2C200&ssl=1 1x, https:\/\/i0.wp.com\/alphastreet.com\/india\/wp-content\/uploads\/2021\/12\/DaburQ222.jpg?resize=525%2C300&ssl=1 1.5x, https:\/\/i0.wp.com\/alphastreet.com\/india\/wp-content\/uploads\/2021\/12\/DaburQ222.jpg?resize=700%2C400&ssl=1 2x, https:\/\/i0.wp.com\/alphastreet.com\/india\/wp-content\/uploads\/2021\/12\/DaburQ222.jpg?resize=1050%2C600&ssl=1 3x"},"classes":[]},{"id":157757,"url":"https:\/\/alphastreet.com\/india\/hdfc-bank-limited-q3-fy24-earnings-conference-call-insights\/","url_meta":{"origin":155694,"position":4},"title":"HDFC Bank Limited Q3 FY24 Earnings Conference Call Insights","author":"Praveen","date":"January 17, 2024","format":false,"excerpt":"Key highlights from HDFC Bank Limited (HDFCBANK) Q3 FY24 Earnings Concall Healthy Domestic Economic Activity Domestic activity driven by robust consumer spending, capital expenditure, manufacturing, and services sector. GST collections grew 13% year-over-year. Manufacturing and services PMI in expansionary zone. Consumer demand improved due to festive spending. GDP growth estimate\u2026","rel":"","context":"In &quot;Concall Highlights&quot;","block_context":{"text":"Concall Highlights","link":"https:\/\/alphastreet.com\/india\/category\/earnings-call-highlights\/"},"img":{"alt_text":"","src":"https:\/\/i0.wp.com\/alphastreet.com\/india\/wp-content\/uploads\/2023\/10\/CC_Image_1.jpg?resize=350%2C200&ssl=1","width":350,"height":200,"srcset":"https:\/\/i0.wp.com\/alphastreet.com\/india\/wp-content\/uploads\/2023\/10\/CC_Image_1.jpg?resize=350%2C200&ssl=1 1x, https:\/\/i0.wp.com\/alphastreet.com\/india\/wp-content\/uploads\/2023\/10\/CC_Image_1.jpg?resize=525%2C300&ssl=1 1.5x, https:\/\/i0.wp.com\/alphastreet.com\/india\/wp-content\/uploads\/2023\/10\/CC_Image_1.jpg?resize=700%2C400&ssl=1 2x"},"classes":[]},{"id":135257,"url":"https:\/\/alphastreet.com\/india\/dabur-india-limited-q2fy23-consolidated-net-profit-decreased-by-2-8\/","url_meta":{"origin":155694,"position":5},"title":"Dabur India Limited Q2FY23; Consolidated Net Profit Decreased by 2.8%","author":"Hardik Bhandare","date":"October 30, 2022","format":false,"excerpt":"Dabur India Limited (NSE: DABUR) reported Q2FY23 result with a decent Revenue growth of 6% up to \u20b92,986.49 Crores from \u20b92817.58 Crores year on year. The Net Profit decreased by 2.8% to \u20b9490.86 Crores from \u20b9505.31 Crores in the same period. The Earnings per share is \u20b92.77 for this quarter.","rel":"","context":"In &quot;AlphaGraphs&quot;","block_context":{"text":"AlphaGraphs","link":"https:\/\/alphastreet.com\/india\/category\/infographics\/"},"img":{"alt_text":"","src":"https:\/\/i0.wp.com\/alphastreet.com\/india\/wp-content\/uploads\/2022\/10\/15425b56-986e-4484-a6de-f16f461ce120-2-scaled.jpg?resize=350%2C200&ssl=1","width":350,"height":200,"srcset":"https:\/\/i0.wp.com\/alphastreet.com\/india\/wp-content\/uploads\/2022\/10\/15425b56-986e-4484-a6de-f16f461ce120-2-scaled.jpg?resize=350%2C200&ssl=1 1x, https:\/\/i0.wp.com\/alphastreet.com\/india\/wp-content\/uploads\/2022\/10\/15425b56-986e-4484-a6de-f16f461ce120-2-scaled.jpg?resize=525%2C300&ssl=1 1.5x, https:\/\/i0.wp.com\/alphastreet.com\/india\/wp-content\/uploads\/2022\/10\/15425b56-986e-4484-a6de-f16f461ce120-2-scaled.jpg?resize=700%2C400&ssl=1 2x, https:\/\/i0.wp.com\/alphastreet.com\/india\/wp-content\/uploads\/2022\/10\/15425b56-986e-4484-a6de-f16f461ce120-2-scaled.jpg?resize=1050%2C600&ssl=1 3x, https:\/\/i0.wp.com\/alphastreet.com\/india\/wp-content\/uploads\/2022\/10\/15425b56-986e-4484-a6de-f16f461ce120-2-scaled.jpg?resize=1400%2C800&ssl=1 4x"},"classes":[]}],"jetpack_sharing_enabled":true,"_links":{"self":[{"href":"https:\/\/alphastreet.com\/india\/wp-json\/wp\/v2\/posts\/155694","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/alphastreet.com\/india\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/alphastreet.com\/india\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/alphastreet.com\/india\/wp-json\/wp\/v2\/users\/1767"}],"replies":[{"embeddable":true,"href":"https:\/\/alphastreet.com\/india\/wp-json\/wp\/v2\/comments?post=155694"}],"version-history":[{"count":0,"href":"https:\/\/alphastreet.com\/india\/wp-json\/wp\/v2\/posts\/155694\/revisions"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/alphastreet.com\/india\/wp-json\/wp\/v2\/media\/154818"}],"wp:attachment":[{"href":"https:\/\/alphastreet.com\/india\/wp-json\/wp\/v2\/media?parent=155694"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/alphastreet.com\/india\/wp-json\/wp\/v2\/categories?post=155694"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/alphastreet.com\/india\/wp-json\/wp\/v2\/tags?post=155694"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}