Dabur flags up to 200 bps margin hit in Q2 on inflation

Firm expects easing commodity prices to help improve margins in the second half of the year

October 06, 2022 07:41 pm | Updated 09:00 pm IST - BENGALURU

Consumer goods major Dabur India on Thursday warned that soaring inflation during the second quarter could lower its operating margin by around 150-200 basis points year-on-year, while revenue likely grew in mid-single digits.

"During the quarter, inflation was at peak levels which impacted gross margins," Dabur said in a regulatory filing. However, the maker of toothpaste and packaged juices expects easing commodity prices to help improve margins in the second half of the year.

India's retail inflation accelerated to 7% in August on surging food prices after dipping to 6.71% in July. Consumer price inflation data for September is expected next Wednesday.

Urban markets were driven by modern trade and e-commerce which saw double-digit growth, while rural markets witnessed some pressure in terms of liquidity, it said.

India revenue is expected to grow in mid-single digits, but international business is seen growing in double digits.

Dabur's consolidated revenue grew 8.1% in the June-quarter, with an operating margin of 19.62%.

The company is due to report earnings for the second quarter ended September on October 26.

Top News Today

Comments

Comments have to be in English, and in full sentences. They cannot be abusive or personal. Please abide by our community guidelines for posting your comments.

We have migrated to a new commenting platform. If you are already a registered user of The Hindu and logged in, you may continue to engage with our articles. If you do not have an account please register and login to post comments. Users can access their older comments by logging into their accounts on Vuukle.