News Update

Dabur India expects increased third-quarter revenue as late demand rises

• ByStartupStory     |    January 7, 2023

Dabur India Ltd. (DABU.NS), a manufacturer of consumer goods, warned on Friday that despite expecting an increase in revenue overall, its operating margin for the third quarter could decline owing to currency fluctuations and inflation in its foreign business. 

The company, which derives a quarter of its revenue from international markets, said that recent reductions in the value of the Turkish and Egyptian currencies as well as high cost of sales have negatively impacted its global business.

The fast-moving consumer products company predicted that operating margin for the three months ending in December would decrease by 200 to 250 basis points, but said that gross margin would increase sequentially because of an increase in demand in India near the end of the quarter. 

The company also stated that due to signs of recovery in rural India following early-quarter pressure, its consolidated quarterly revenue should rise in the low- to mid-single-digit percentage range.

Over the previous few quarters, publicly traded packaged goods producers in India have been suffering from high cost of living, particularly as cash-strapped rural shoppers looked for less expensive options.

Dabur said in an exchange filing, “The improving macroeconomic environment, positive steps being taken by the government and the expected stimulus of the upcoming Union Budget should help speed up the recovery of the industry.” 

The update from Dabur comes after recently released mixed forecasts from competitors Marico and Godrej Consumer Products. 

On February 2, Dabur is anticipated to release its third quarter financial results.

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