• First-quarter performance: Dabur reported 10.6% revenue growth, supported by a 9.5% rise in domestic FMCG business with 5% volume growth and 15.5% international growth. Profitability increased by 15%, with India gross margins expanding by 100 bps and overall operating profit margins improving by 30 bps.
• International business trajectory: Double-digit international revenue growth is expected to remain sustainable across FY27, bolstered by a 17% increase in the Namaste business, currency translation benefits, and e-commerce expanding to 3% to 4% of international revenue.
• Revenue growth guidance: Management reiterated its double-digit revenue growth target for FY27, expecting an approximately 50-50 split between volume and price realization. Management also noted that consolidated inflation could peak at 20%, which may require another round of price increases.
• Cost management strategy: To counter 6% domestic inflation, the company passed on 4.5% in price hikes and absorbed the remaining 2% to 2.5% via cost optimizations, including eliminating trade duplication and reducing unnecessary consumer promotions.