Dabur Q1 consolidated net rises 38 per cent

Our Corporate Bureau
19 July 2006

Leading FMCG player Dabur India has reported first quarter results, which are in line with market expectations. Top line growth remained strong during the quarter while the improvement in operating margins was better than expected. Dabur said it has completed operational integration of the acquired Balsara businesses.

Consolidated net profits for the quarter ended 30th June 2006 has increased 38.29 per cent to Rs 48.22 crore from Rs 34.87 crore for the previous year quarter. Consolidated net sales for the quarter increased 14.66 per cent to Rs 475.51 crore from Rs 414.7 crore.

Operating profits increased 35.65 per cent toRs 69.21 crore from Rs 51.02 crore for the prior year quarter. Operating margins as a percentage of net sales improved considerably by 225 basis points to 14.55 per cent from 12.3 per cent during the previous year quarter.

The improvement in margins was mostly on account of better control on input costs. Material costs and other inputs increased by 8.83 per cent during the quarter, lower than the growth in sales.

Advertising and marketing costs increased by 24.49 per cent over the previous year quarter while staff costs went up by 18.75 per cent. Other expenses were higher by 11.29 per cent.

Interest costs for the quarter remained almost unchanged while depreciation an amortisation charged went up by 28.1 per cent. The company benefited from a substantial increase in other income to Rs 5.28 crore from Rs 1.81 crore for the previous year quarter.