Dabur Q1 2012 profit increases 17% to $26.6m

FMCG major Dabur India posted a 17% rise in its consolidated net profit for the first quarter ended 30 June 2012 at INR1.49bn ($26.6m), compared to INR1.27bn ($22.8m) in the same quarter a year earlier.

Strong growth in health supplements, shampoos and food categories is said to have boosted by 21% consolidated net sales to INR14.6bn ($260.9m) for the quarter, compared to the INR12.04bn ($215m) of the corresponding period last year.

Dabur India Chief Executive Officer Sunil Duggal said that despite signs of an economic downturn and increased competition in the market, the company managed to kick-start volume growth ahead of the market in its key categories.

"Dabur has laid the foundation for strong and profitable growth in the future with an array of initiatives that includes doubling our distribution footprint in rural India. These initiatives have already started to yield positive results," Duggal added.

The India-based company reported 16% increase to INR11.75bn ($209.7m) in consumer care revenue; and its new brand NewU grew from INR80m ($1.4m) to INR130m ($2.3m).

During April-June quarter, Dabur said its raw material costs were up by 21% to INR6.28bn ($112.8m) and advertising and publicity spends rose by 52% to INR2.29bn ($40.8m).