Dabur India expects low single-digit revenue growth in Q3 amid sudued demand

INDIA – Dabur India, a leading FMCG company, has projected low single-digit consolidated revenue growth for the October-December quarter (Q3FY25), citing subdued demand in its healthcare and beverage segments.  

In its quarterly business update, the company stated that its profit is expected to remain flat on an annual basis, while operating profit or earnings before income and tax (EBIT) growth is also anticipated to be minimal. 

The company reported an 18 percent decline in profit in the previous quarter (Q2FY25) due to high food inflation and weakened urban demand.  

While rural consumption remained resilient in Q3FY25 and outpaced urban demand, Dabur noted that subdued urban demand continues to impact its quarterly performance. This trend has been a common challenge for many consumer goods companies. 

Dabur highlighted that its general trade segment remains under pressure, though alternative channels such as modern trade, e-commerce, and quick commerce have maintained strong growth.  

The company’s beverages portfolio is expected to deliver muted performance during the quarter.  

However, its culinary brands, including Hommade and Badshah, have shown robust growth and are projected to post strong double-digit revenue increases. 

In the healthcare and personal care categories, Dabur anticipates mid-to-high single-digit growth.  

Meanwhile, the company’s international business is forecasted to achieve double-digit growth in constant currency terms, driven by strong performance in regions such as the Middle East and North Africa (MENA), Egypt, Bangladesh, and the United States. 

The company acknowledged inflationary pressures in certain segments during the third quarter but noted that price hikes and cost-efficiency initiatives helped mitigate the impact.  

Despite these challenges, Dabur expressed optimism about the future, pointing to improving macroeconomic indicators that could lead to a revival in FMCG growth. 

“We remain committed to delivering superior performance across all business segments and enhancing market share within our portfolio,” Dabur said in its statement.  

“Our strategic priorities continue to centre on brand building, sustained profitable growth, and long-term value creation.” 

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