In Q2 FY25, Dabur India cut its advertising and promotional spending by 5%, reducing expenses to Rs 164.87 crore for the period between July and September 2024, compared to Rs 173 crore spent in the same quarter last year. This strategic adjustment comes as the FMCG giant faces a 17% year-on-year drop in net profit, amounting to Rs 425 crore, alongside a 5% decline in revenue to Rs 3,029 crore.
CEO Mohit Malhotra shared an optimistic outlook, noting the company’s focus on reviving consumer demand in both urban and rural markets. “We are aiming to solidify our market position through investments in expanding our rural footprint and introducing consumer-focused innovations,” he stated.
In addition, Dabur declared an interim dividend of Rs 2.75 per equity share, equivalent to 275%, for the fiscal year 2024-25. The company also announced the acquisition of Ayurvedic hair care brand Sesa Care Private Limited, valued between Rs 315-325 crore. Dabur will acquire a 51% stake for Rs 12.59 crore, with plans to extend a corporate guarantee for Sesa’s existing debt. The acquisition is anticipated to conclude within the next 15-18 months.
This strategic combination of investment and cost efficiency reflects Dabur’s approach to navigating current market challenges while laying the groundwork for growth in emerging segments.
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