Dabur India

For Q3 FY12, the consolidated net sales has grown by 35% to Rs 1463.08 crore. Excluding acquisitions, the sales grew at a robust 20% driven by combination of volume growth and price increases and translation gains. Volume growth was at 11%. Domestic sales grew by 16% with a price growth of 8%. A host of consumer connect initiatives and higher investment behind brands helped the company drive demand for its products in both urban and rural markets

The Hair Oils business led by strong growth in both Amla & Vatika brands showed a 22% growth, while the Digestives business reported a 19% growth. Home Care category riding on sustained demand for Odonil air fresheners ended the period with an 18% gain. The Foods business reported a 17% growth. The company continued to be among the fastest growing toothpaste companies in India with the category reporting a robust 14% growth. The Health Supplements category show a 13.5% growth.

The company's forayed into the professional grooming space with the launch of professional facial kits under the brand Fem. The company has launched Fem Gold & Fem Queen's Pearl professional facial kits, both of which have been very well received by the market. The Company is now adding to this portfolio with the launch of India's first body bleach, also under the Fem brand. Dabur also entered the Almond hair oil market during this period.

Dabur's International Business recorded a robust 38% growth (excluding acquisitions - Hobi & Namaste), led by strong performance in GCC, Egypt and Nigeria. The Nigeria business reported a 33% growth, while sales in GCC markets grew by 27%. Egypt too reported a 25% growth. Shampoos, hair creams and toothpastes were the key growth drivers in the international markets.

OPM decreased by 410 basis points to 15.8% due to rise purchased finished goods, ASP cost and other expenditure. The net profit jumped by 12% to Rs 172.82 crore. There was some impact of adverse foreign currency movements which may be recovered if rupee continues to appreciate in Q4

Despite the Inflationary pressures and macro-economic challenges, we have managed our business dynamically through a combination of judicious price increases and greater focus on cost efficiencies. We have also enhanced investment behind our brands, which will yield dividend in months to come. As a result, our EBITDA marked a 12% growth during the quarter. Going forward too, we will continue to pursue an aggressive and profitable growth strategy

(The quarter results are not comparable as it includes the result of Namaste Laboratories, Hair Rejuvention & Revitalisation, Healing Hair Laboratories International and Urban Laboratories Inyternational)

The net sales has grown by 35% to Rs 1463.08 crore. Excluding acquisitions, the sales grew at a robust 20% driven by combination of volume growth, price increases and marginal growth, translation gains. Volume growth was at 11%. Domestic sales grew by 16% with a price growth of 8%. A host of consumer connect initiatives and higher investment behind brands helped the company drive demand for its products in both urban and rural markets

The Hair Oils business led by strong growth in both Amla & Vatika brands showed a 22% growth, while the Digestives business reported a 19% growth. Home Care category riding on sustained demand for Odonil air fresheners ended the period with an 18% gain. The Foods business reported a 17% growth. The company continued to be among the fastest growing toothpaste companies in India with the category reporting a robust 14% growth. The Health Supplements category show a 13.5% growth.

The company's forayed into the professional grooming space with the launch of professional facial kits under the brand Fem. The company has launched Fem Gold & Fem Queen's Pearl professional facial kits, both of which have been very well received by the market. The Company is now adding to this portfolio with the launch of India's first body bleach, also under the Fem brand. Dabur also entered the Almond hair oil market during this period.

Dabur's International Business recorded a robust 38% growth (excluding acquisitions - Hobi & Namaste), led by strong performance in GCC, Egypt and Nigeria. The Nigeria business reported a 33% growth, while sales in GCC markets grew by 27%. Egypt too reported a 25% growth. Shampoos, hair creams and toothpastes were the key growth drivers in the international markets.

OPM decreased by 410 basis points to 15.8% due to rise purchased finished goods by 610 basis points to 13.23%, ASP cost by 105 basis points to 13.41% and other expenditure by 50 basis points to 12.65% of adjusted net sales. However, raw material cost was down by 330 basis points to 37.88% of adjusted net sales. The operating profit has increased by 7% to Rs 231.89 crore.

Other income inclined by 552% to Rs 12.72 crore. Interest outgo has inclined by 241% to Rs 18.29 crore. Provision for depreciation including amortization charges decreased by 11% to Rs 20.81 crore. Thus, the profit before tax (PBT) has increased by 8% to Rs 205.51 crore.

Total tax outgo has decreased 6% to Rs 33.69 crore. After considering minority interest, the net profit jumped by 12% to Rs 172.82 crore. There was some impact of adverse foreign currency movements which may be recovered if rupee continues to appreciate in Q4

For the nine months ended December 2011

(The results are not comparable as it includes the result of Namaste Laboratories, Hair Rejuvention & Revitalisation, Healing Hair Laboratories International and Urban Laboratories Inyternational)

The net sales grew by 32% to Rs 3946.3 crore. OPM declined by 260 basis points to 16.6%. The operating profit has increased by 14% to Rs 655.5 crore.

Other income increased by 142% to Rs 38.41 crore. Interest costs increased by 233% to Rs 48.12 crore while provision for depreciation including amortization charges increased by 12% to Rs 63.58 crore. PBT registered a growth of 12% to Rs 582.21crore.

Total tax outgo has increased by 11% to Rs 108.65 crore. After considering minority interest, the net profit has increased by 13% to Rs 474.38 crore.

The consumer care business contributed 87% to the revenues for Q3 FY12. Gross sales grew by 35% to Rs 1275.99 crore. Profits before interest and tax (PBIT) margin has declined by 500 basis points to 21.1%. The PBIT has increased by 9% to Rs 268.88 crore. The segment accounted for 92% of total PBIT.

For 9M FY12, the business contributed 85% to the consolidated entity's revenues. Gross sales grew 32% to Rs 3375.37 crore. PBIT margin has declined by 420 basis points to 21.5%. The PBIT has increased by 11% to Rs 726.82 crore. The segment accounted for 90% of total PBIT.

The division contributed 9% to the total revenue for Q3 FY12. Gross sales grew by 22% to Rs 137.51 crore. PBIT margin has declined by 160 basis points to 15.8%. The PBIT has increased by 11% to Rs 21.75 crore. With this, the segment accounted for 7% of total PBIT.

For 9M FY12, food division contributed 11% to the consolidated entity's revenues. Gross sales grew by 21% to Rs 444.08 crore. PBIT margins declined by 100 basis points to 18% leading to a 14% rise in the profit of the division to Rs 79.82 crore. The segment accounted for 10% of total PBIT.

Retails

The gross sales stood at Rs 12.25 crore for Q3 FY12, an increase of 112% while the loss stood at Rs 3.33 crore.

Gross sales for 9M FY12 stood at Rs 30.12 crore, an increase of 118% while the loss stood at Rs 8.7 crore.

Other Developments

Dabur India (Pvt,). Ltd a wholly owned subsidiary newly formed in Srilanka to set up a FMCG plant involving proposed estimated capital outlays of Rs 105 crore approx., out of which RS 11 crore already spend against ongoing project.

Valuation

The scrip is trading at around Rs 94.1 at BSE.

The promoter has pledged 0.05% of total shareholding of promoter & promoter group

The total promoters holding in the company stand at 68.7%.

Dabur India: Consolidated Results

Dabur India: Consolidated Segment Results