Indian consumer firms Dabur, Godrej flag Q1 profit pressures
Dabur's quarterly earnings will be hurt by weaker beverage sales caused by unseasonal rains and a shorter summer, it said in a statement on Friday.
In the first quarter of its fiscal 2024-2025 financial year, the company's operating profit rise of 8.3% was higher than its revenue growth of 7%.
India's consumer goods sector has been under pressure in urban markets for several quarters as customers reeling from high costs of living cut back on discretionary purchases.
India's Godrej Consumer misses profit estimates due to higher costs
Separately, Godrej said on Friday its first-quarter standalone earnings before interest, taxes, depreciation and amortization margin would be below its target range, but were expected to improve. The company has also been dealing with volatile palm oil prices, which have hurt its personal care segment that sells soaps.
It said palm oil prices started moderating towards the end of June, and the benefits will be realized in the second half of fiscal year 2026. The company is, however, on track to deliver high-single digit consolidated revenue growth and double-digit consolidated EBITDA growth for the year, it added.
Dabur said the Indian consumer goods sector experienced sequential recovery in demand in the first quarter ended June, with an uptick in volume growth.
It said it was planning to focus on its 'Activ' juices, which contain no added sugar or preservatives, to capitalize on the rising trend of middle-class Indians becoming more health conscious. Beverages made up 17% of its revenue in fiscal year 2025.
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