Fast-moving consumer goods company Dabur India has set its sights on potential acquisitions in the direct-to-consumer (D2C) space to tap into the growing market for new-age brands. The company’s CEO, Mohit Malhotra, confirmed during a recent post-earnings call that Dabur has allocated funds in its balance sheet for potential acquisitions in the healthcare, personal care, and skincare sectors. The main objective of these acquisitions is to strengthen margins and enhance the company’s market position.
In the first quarter, Dabur reported a 3.52% increase in consolidated net profit, reaching ₹456.61 crore, with consolidated revenue growing by 11% year-on-year to reach ₹3,130.47 crore. The company’s business in rural India was a key driver of growth. However, unseasonal rains in the northern and western regions of India affected the demand for its beverages portfolio.
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Despite the challenges, Dabur witnessed growth in both rural and urban markets. The company’s rural growth rebounded to high single digits after three quarters, partly aided by moderation in inflation. While rural growth continues to trail urban demand, the gap has notably reduced.
Dabur’s focus on efficiency and investments in its brands resulted in improved gross margins at 46.6% and EBITDA margins at 19.3%. The health care portfolio led the way with a growth of 12.85%, particularly the over-the-counter (OTC) segment with brands like Lal Tail, Honitus, Dabur health juices, and Shilajit, which achieved a robust 24.3% growth during the quarter. The oral care and hair care portfolios also contributed positively to the overall performance.
Looking ahead, Dabur India remains committed to identifying potential acquisitions in the D2C space to complement its portfolio and sustain growth in the competitive FMCG market.
