Market Performance
Dabur's share price witnessed a notable dip, falling over 4% in early trade on Thursday following its Q4 FY25 results and the announcement of a dividend. The FMCG giant's shares plunged as much as 4.27% to ₹461.95 apiece on the BSE.
Despite a slight recovery, at 9:30 AM, Dabur's share price was trading 1.48% lower at ₹475.45 per share.
- 1-Month Performance: +3%
- 3-Month Performance: -10%
- Year-to-Date (2025): -7%
- 1-Year Performance: -15%
Main News
Dabur India reported weak financial Performance for Q4FY25, with profits taking a hit due to multiple factors, including sluggish urban demand, tough competition, and an unfavorable seasonal impact.
The company's board also announced a final dividend of ₹5.25 per equity share for FY25, offering some relief to shareholders despite the stock's recent underperformance.
Company Details & Financial Performance
Revenue & Profit Performance:
- Revenue: ₹2,830 crore, up by 0.5% YoY (₹2,814.6 crore in Q4FY24)
- Net Profit: ₹320.13 crore, down 8.4% YoY (₹349.53 crore in Q4FY24)
EBITDA:
- EBITDA: ₹426.8 crore, declined 8.6% YoY (₹466.70 crore in Q4FY24)
- EBITDA Margin: 15.1%, down from 16.6% YoY
Segment Performance Highlights:
- Food Portfolio: +14% YoY growth
- Home & Personal Care: -3.3% YoY
- Healthcare: -4.7% YoY
- Beverages: -9.2% YoY
The domestic business saw a decline of 3.7% YoY, primarily impacted by a delayed and shorter winter season affecting the healthcare portfolio. Meanwhile, the international business grew 19% in constant currency terms but faced currency headwinds in INR terms with a growth of 13%.
Outlook and Future Prospects
Dabur remains optimistic about gradual sequential recovery and expects margin expansion in FY26. However, with urban demand remaining indifferent and consecutive challenges in key categories, Dabur could gradually recover.
Summary of the Article
Dabur's share price declined by over 4% in early trade after the company reported mixed Q4FY25 results. While revenue saw a marginal increase, net profit fell by 8.4%, and EBITDA margins contracted to 15.1%. Weak Performance in key categories, such as home care and beverages, along with a sluggish domestic market, contributed to the decline.
Despite headwinds, Dabur declared a final dividend of ₹5.25 per share, signaling confidence in its long-term outlook. The company's international business showed promise with a solid 19% growth in constant currency, offering hope for the future.
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