Dabur to Rationalize Portfolio, Focus on High-Growth Segments Post-Profit Decline

Dabur India has said it will strategically revamp itself after its March quarter net profit fell 8.4% to Rs 320 crore due to poor demand, particularly in urban areas. The company will drop a few underperforming brands like Vedic Tea, Dabur Vita, and its diaper businesses to concentrate on core brands and fuel future growth.

Major points:

Dabur's net profit declined to Rs 320 crore in Q4 FY25, although revenues crept up a mere 0.5% to Rs 2,830 crore.

The group will exit low-performing brands to divert resources to its leading brands like Dabur Red, Real, Chyawanprash, Hajmola, and Odonil.

Dabur hopes to register a sustainable double-digit compound annual growth rate (CAGR) both in revenues and profits by FY28 through premiumization and innovation.

The firm is growing investments in fast-growing channels such as e-commerce and quick commerce, and will also go in for mergers and acquisitions, particularly in wellness and health-centric categories.

While urban demand has been muted, Dabur recorded double-digit growth in modern trade, e-commerce, and rural channels, and is hopeful of a recovery in the quarters ahead.

The board has approved a final dividend of Rs 5.25 per share for FY25.

Sources: Moneycontrol, Business Standard, The Hindu BusinessLine, Financial Express, Economic Times