Government push will support rural growth in the second half of the year and onwards: Dabur

Consumer goods maker Dabur announced that government initiatives are expected to support rural growth in the latter half of the year and beyond. CEO of Dabur, Mr. Mohit Malhotra, highlighted that the company has experienced a strong start to the new financial year, with sequential recovery in volume growth led by rural markets. This performance has enabled Dabur to increase brand investments, driving market expansion and sustaining growth momentum.

Dabur's focused strategy of expanding its rural presence to over 1.22 lakh villages has yielded significant results, surpassing urban demand by 350 basis points (bps) during the quarter. Fast-moving consumer goods (FMCG) sales began recovering in January-March, with rural growth outpacing urban areas for the first time in five quarters. The rural segment accounts for 45%-50% of Dabur's total revenue. The consumer care segment, which constitutes 77% of the company's revenue mix, increased by 7% during the quarter, contributing to a 7% rise in total revenue. Stable commodity prices and a 1% rise in raw material costs also supported the company's earnings. Analysts noted that the early onset of the monsoon could enhance farm incomes and rural consumption. Following the results, Dabur's shares rose 1.5%, with a 15% gain in the June quarter compared to a 5.2% rise in the Nifty FMCG index.

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