Dabur India logo.
Credit: X/@DaburIndia
Bengaluru: Consumer goods firm Dabur posted a 8.4% drop in its profit to Rs 320 crore in the fourth quarter of fiscal year 2025 (Q4FY25) on Wednesday, compared to Rs 349.5 crore a year earlier, as demand environment continues to be challenging in light of a surge in cost of living, limiting urban spending.
For the quarter ended March 2025, it clocked in a revenue of Rs 2,830.1 crore, marginally (0.6%) higher as compared to the same quarter of last year.
“We expect consumer demand in India to recover progressively in the coming quarters, both in urban and rural markets. We are focusing on strengthening our competitive edge in the marketplace by investing in scaling up our rural footprint and rolling out consumer-centric innovations,” said Chief Executive Officer Mohit Malhotra.
Fast-moving consumer goods (FMCG) companies have been facing issues due to a tepid urban market. However, forward-looking commentary by Dabur’s peers including Hindustan Unilever, Reliance and Nestle, shows a likely revival boosted by tax cuts, good monsoon and lower inflation.
Dabur also announced exit from its underperforming products like tea, diapers and its chocolate drink (Vita) among others, in order to free up capital for bigger bets."The categories that we will get out from are tea, adult and baby diapers, the sanitizing category and beta categories. We will get out of these categories and focus on big bold equities which we've identified and core portfolio is where we will invest," Malhotra said in an investor call.
The Chawanprash-maker is looking to double down on emerging channels like e-commerce and quick commerce and will aggressively pursue merger and acquisition opportunities for creating a future fit portfolio focused on new age healthcare, wellness foods, and premium personal care.
Its foods business reported over 14% growth in Q4, while the skin and salon business grew 8%. The Ghaziabad-based company has ambitions of achieving sustainable double-digit compound annual growth rate (CAGR) by FY28 in both top line and bottom line.