Dabur India Ltd. — Interim / Quarterly Report 2020

Nov 3, 2020

Ref:SEC/SE/2020-21 Date: November 03, 2020

Scrip Symbol: NSE- DABUR, BSE Scrip Code: 500096

To,

Corporate Relation Department BSE Ltd Phiroze Jeejeebhoy Towers Dalal Street, Mumbai- 400001

National Stock Exchange of India Ltd Exchange Plaza, 5th Floor Plot No. C/l, G Block Bandra - Kurla Complex Bandra [E], Mumbai - 400051

Sub: Investors Communication

Dear Sir,

In compliance ofSEBI [Listing Obligations and Disclosure Requirements) Regulations, 2015, we are pleased to enclose a copy of Investors Communication being issued by the company today for your records.

This is for your information and records.

Thanking You,

Yours faithfully,

For Dabur India Limited

-^^-

(AKjyn) l Executive V P (Finance) and Company Secretary

End: as above

DABUR INDIA LIMITED, Punjabi Bhawan, 10, Rouse Avenue, New Delhi-110 002, Tel.: +91 11 71206000 Fax: +91 11 23222051 Regd. Office: 8/3, AsafAli Road, New Delhi -"110 002 (India) PAN: MACD0474C, CIN: L24230DL1975PLC007908, Email: corpcomm@dabur.com, Website: www.dabur.com

Q2 FY21 – Results Presentation 3rd November 2020

Agenda

GDP declined by 24% in Q1, FY outlook remains bleak with projected decline of 10%+

India Real GDP Contracted By 23.9% In Q1FY21 and is expected to contract 11-13% in Q2 FY21

FY21 is now expected to see a decline of 10%+ in GDP

FY21 GDP Growth Forecasts

Source: Ministry of Statistics and Program Implementation, Q2 FY21 GDP Growth forecast is an average of 10 forecasts given by entities like ICRA, Crisil, Care, etc; FY21 GDP Growth Forecasts as per latest estimates given by the entity

Key Macro Indicators

Source: Ministry of Statistics and Program Implementation, Centre for Monitoring of Indian Economy, Ministry of Commerce, RBI

Rural continues to fare much better than urban

Source: Centre for Monitoring of Indian Economy, Ministry of Agriculture (*As of 25 Sep 2020), Tractor and Mechanization Association; #The scheme shall provide a medium – long term debt financing facility for investment in viable projects for post-harvest management Infrastructure and community farming assets through interest subvention and financial support.

Agenda

Q2 FY21 – Performance Summary

Q2 FY21 – Financials

2,212 2,516 Q2 FY20 Q2 FY21 Revenue +13.7%

• India FMCG business recorded a growth of 19.8% on the back of volume growth of 16.8% • International Business reported 5.5% growth in INR terms (CC growth of 3.5%)
• Consolidated Operating Margin saw a growth of 16.3% and the margin saw an improvement of 50 bps, reaching 22.6% in Q2 FY21
• Standalone Operating Profit saw a growth of 19.0% and the margin saw an improvement of 22 bps , reaching 23.5% in Q2 FY21

• Consolidated PAT grew by 19.5%
• Consolidated PAT margin saw an improvement of 93 bps, to touch 19.1% in Q2 FY21
• Standalone PAT increased by 20.6%

Domestic FMCG Growth – By Verticals – Q2 FY21

Agenda

Healthcare – Q2 FY21

	Health Supplements	Digestives	OTC	Ethicals
Growth %	70.8%	2.5%	56.1%	26.4%
Category Highlights	• Recorded strong growth on the back of ~2x sales of Dabur Chyawanprash and robust double-digit growth in Dabur Honey • Dabur's market share in Chyawanprash category increased by ~190 bps	• Pudin Hara portfolio saw strong double-digit growth in Q2 FY21 • Hajmola portfolio was impacted due to restricted outdoor activity, minimal outside food consumption and closures of restaurants (seeing sequential improvement)	• Driven by strong growth in Lal Tail and Shilajit Portfolio NPDs like Dabur Health • Drops, Health Juices and other immunity boosting products added to the momentum of the portfolio	• Ethicals grew in double digits on the back of strong growth in all immunity related brands Immunity@Doorstep initiative • reached 50 lakhs + consumers across 32 towns

Dabur Honey – Immunity Range (Tulsi and Ashwagandha)

Dabur Tulsi Drops – New Communication Dabur Health Juices Range

New Product Launches – Healthcare

Home and Personal Care – Q2 FY21

	Oral Care	Hair Oils	Shampoo	Home Care	Skin & Salon
Growth %	24.2%	(6.3%)	17.8%	(10.2%)	38.1%
Category Highlights	• Red Toothpaste continues to see good demand momentum • Meswak and Babool Franchise also reported robust double-digit growths • Toothpaste market share improved by ~90 bps	• Low CSD sales impacted the business. Excluding Institutional business, Hair oils were flattish • Sarson Amla Hair Oil and Anmol Coconut Oil reported double digit growth	• Shampoos portfolio registered strong growth in spite of decline in the category • Market share in shampoo category increased by ~80 bps	• Air freshener category continued to be impacted being more discretionary in nature. However, Odonil's MS improved by 60 bps • Mosquito repellant creams also saw a decline, but Odomos' MS increased by 80 bps • Recently launched Home Hygiene portfolio saw good traction	• Dabur Sanitize range including hand washes, hand sanitizers, antiseptic liquids and soaps witnessed good traction • Fem and Gulabari reported muted performance but are seeing sequential improvement

Dabur Dant Rakshak – New Communication

Odonil Air Freshener – With Odour Buster and 2x Freshness

Dabur Sanitize Hand Sanitiser – New Communication

New Product Launches – HPC

Dabur Baby Care Range

Dabur Amla Aloe Vera Hair Oil Dabur Badam Amla Hair Oil

Foods – Q2 FY21

	Beverages	Culinary
Growth %	(4.8%)	12.1%
	• Domestic Juices business excluding Enterprise (HORECA, FS and	• Hommade brand performed well driven by increased cooking at home
	CSD) saw a growth of 6%	Excluding the HORECA business, Culinary business recorded •
	• Market share of Real increased by 170 bps	growth of 46%
Category Highlights	• Activ Coconut Water reported strong double-digit growth	• Recent launches like chutneys & pickles added to the growth momentum
	Recent launches of Real Mango Drink in PET, Real Amla Plus and Real •
	Frappe showed good traction
	• Real Low Cal juices launched – first of its kind

Real ka Naya Mango Drink Real Frappe – New Communication Dabur Amla Plus – New Communication

New Product Launches – Foods

New Communication and Restyling Brands

Consumer Connect through Activations

With increased mobility in Q2, a big push to reach out to consumers,	No of activities	Consumer Reach
especially in Health care	36	3.2 Cr

Stresscom

Ratnaprash

Ayush Kwath Kadha Corona Warrior sampling CRPF Health Camp COVID testing

Immunity @ Door step & Immune Bharat

Rakhi Gift Pack

Key Activations – Q2 FY21

Heath Juices Ghar Ghar Immunity

Rheumatil Risto Ke Anmol Rang

Stresscom ATM Branding

Lipistat #Kickstartyourdaywithli pistat

International Business – Q2 FY21 Performance

Q2 FY20 Sales Contribution

• International Business reported a growth of 5.5% (CC growth of 3.5%)
• MENA continues to be impacted by Covid and macroeconomic headwinds
• Egypt recorded a decline of 3.3%
• Hobby had a strong quarter, growing by 31.3%
• Namaste's US business reported strong 14.6% growth
• Nepal business saw a recovery with 29.3% growth and Bangladesh saw a growth of 31.8%

Q2 FY21 Constant Currency Growth %

Product Launches – Q2 FY21

Dabur Fruit & Veggie Clean (in GCC)

Vatika Styling Hair Cream (in Egypt)

Vatika Afro Natural Hair Gel (in SSA)

Product Launches – Q2 FY21

Agenda

Interim Dividend

	H1 FY21
Dividend per share (INR)	1.75
Dividend %	175%
Total dividend (INR cr)	309.30

Annexure

Consolidated Profit and Loss Statement

figures All are in INR cr	Q2 FY21	Q2 FY20	Y-o-Y (%)	H1 FY21	H1 FY20	Y-o-Y (%)
Revenue from operations	2,516.0	2,212.0	13.7%	4,496.0	4,485.3	0.2%
Other Income	87.6	81.8	7.1%	159.4	155.1	2.8%
Total Income	2,603.6	2,293.8	13.5%	4,655.4	4,640.3	0.3%
Material Cost	1,235.9	1,088.5	13.5%	2,237.4	2,236.2	0.1%
of % Revenue	49 1%	49 2%		49 8%	49 9%
Employee expense	267.3	241.5	10.7%	491.1	472.9	3.8%
% of Revenue	10 6%	10 9%		10 9%	10 5%
Advertisement and publicity	202.2	144.2	40.2%	347.8	346.3	0.4%
of % Revenue	8 0%	6 5%		7% 7	7% 7
Other Expenses	241.3	248.2	(2.8%)	433.7	482.7	(10.1%)
of % Revenue	9 6%	11 2%		9 6%	10 8%
Operating Profit	569.4	489.5	16.3%	986.0	947.2	4.1%
% of Revenue	22 6%	22 1%		21 9%	21 1%
EBITDA	657.0	571.3	15.0%	1,145.4	1,102.2	3.9%
% of Revenue	26 1%	25 8%		25 5%	24 6%
Finance Costs	7.5	15.2	(50.9%)	15.3	30.5	(49.7%)
Depreciation & Amortization	59.6	54.5	9.5%	116.4	107.2	8.5%
Profit before exceptional items, tax and share of	589.9	501.6	17.6%	1,013.7	964.5	5.1%
profit/(loss) from joint venture
of % Revenue	23 4%	22 7%		22 5%	21 5%
Share of profit / (loss) of joint venture	(0.3)	0.2	(256.4%)	(0.3)	0.5	(160.1%)
Exceptional item(s)	0.0	40.0	(100.0%)	0.0	60.0	(100.0%)
Tax Expenses	106.7	58.2	83.4%	189.2	137.6	37.5%
Net profit after tax and after share of profit/(loss) from joint venture	482.9	403.6	19.6%	824.2	767.5	7.4%
of % Revenue	19 2%	18 2%		18 3%	1% 17
Non controlling interest	1.2	0.7	76.1%	0.7	1.4	(48.5%)
Net profit for the period/year	481.7	403.0	19.5%	823.5	766.1	7.5%
of % Revenue	19 1%	18 2%		18 3%	1% 17

Standalone Profit and Loss Statement

	Q2 FY21	Q2 FY20	Y-o-Y (%)	H1 FY21	H1 FY20	Y-o-Y (%)
Revenue from operations	1,900.9	1,612.2	17.9%	3,391.8	3,240.5	4.7%
Other Income	73.2	75.1	(2.5%)	138.1	142.6	(54.5%)
Total Income	1,974.1	1,687.3	17.0%	3,529.8	3,383.1	4.3%
Material Cost	950.0	822.0	15.6%	1,710.5	1,673.0	2.2%
% of Revenue	50 0%	51 0%		50 4%	51 6%
Employee expense	174.4	150.9	15.5%	317.7	295.0	7.7%
% of Revenue	9 2%	9 4%		9 4%	9 1%
Advertisement and publicity	167.5	112.1	49.4%	297.3	278.8	6.6%
of % Revenue	8 8%	7 0%		8 8%	8 6%
Other Expenses	162.8	152.4	6.8%	292.7	302.5	(3.3%)
of % Revenue	8 6%	9 5%		8 6%	9 3%
Operating Profit	446.2	374.8	19.0%	773.7	691.1	11.9%
% of Revenue	23 5%	23 3%		22 8%	21 3%
EBITDA	519.4	450.0	15.4%	911.7	833.7	9.4%
of % Revenue	3% 27	9% 27		9% 26	25 7%
Finance Costs	1.9	5.8	(66.9%)	4.4	12.0	(63.3%)
Depreciation & Amortization	36.1	32.8	9.8%	70.1	64.1	9.4%
Profit before exceptional items, tax and share of profit/(loss) from joint venture	481.5	411.3	17.1%	837.2	757.6	10.5%
% of Revenue	25 3%	25 5%		24 7%	23 4%
Exceptional item(s)	0.0	40.0	(100.0%)	0.0	60.0	(100.0%)
Tax Expenses	88.8	45.8	94.0%	155.1	114.3	35.7%
Net profit for the period/year	392.7	325.5	20.6%	682.1	583.3	16.9%
% of Revenue	20 7%	20 2%		20 1%	18 0%

Consolidated Balance Sheet

All	figures are	in unless otherwise stated INR crores,
		Particulars	As at 30/09/2020 (Unaudited)	As at 31/03/2020 (Audited)
A	Assets
1		Non-current assets
	(a)	Property, plant and equipment	1,770	1,821
	(b)	Capital work-in-progress	160	147
	(c)	Investment property	51	52
	(d)	Goodwill	336	336
	(e)	Other Intangible assets	43	44
	(f)	Financial assets
		(i) Investments	3,010	1,409
		(ii) Loans	20	20
		(iii) Others	181	528
	(g)	Deferred tax assets	15	23
	(h)	Non-current tax assets (net)	1	1
	(i)	Other non-current assets	120	112
		Total Non-current assets	5,707	4,492
2		Current assets
	(a)	Inventories	1,431	1,380
	(b)	Financial assets
		(i) Investments	500	1,387
		(ii) Trade receivables	849	809
		(iii) Cash and cash equivalents	290	167
		(iv) Bank Balances other than (iii) above	1,093	645
		(v) Loans	13	12
		(vi) Others	1	3
	(c)	Current tax asset(net)	1	1
	(d)	Other current assets	516	462
	(e)	Assets held for sale	0	0
		Total current assets	4,694	4,865
		Total Assets	10,401	9,357

All figures unless otherwise stated in INR are crores,
Particulars	As at 30/09/2020 (Unaudited)	As at 31/03/2020 (Audited)
B Equity and Liabilities
1 Equity
(a) Equity share capital	177	177
(b) Other Equity	6,950	6,430
Equity attributable to shareholders of the Company	7,127	6,607
Non-Controlling Interest	36	36
Total equity	7,163	6,643
2 Non-current liabilities
(a) Financial liabilities
(i) Borrowings	144	175
(ii) Other financial liabilities	1	1
(b) Provisions	62	63
(c) Deferred tax liabilities (Net)	15	17
Total Non-current liabilities	221	256
3 Current liabilities
(a) Financial liabilities
(i) Borrowings	300	304
(ii) Trade payables
Due to micro and small enterprises	0	0
Due to others	1,887	1,480
(iii) Other financial liabilities	271	232
(b) Other current liabilities	295	230
(c) Provisions	178	166
(d) Current tax Liabilities (Net)	86	47
Total Current liabilities	3,017	2,458
Total Equity and Liabilities	10,401	9,357

Standalone Balance Sheet

All	figures are	in unless otherwise stated INR crores,
		Particulars	As at 30/09/2020 (Unaudited)	As at 31/03/2020 (Audited)
A	Assets
1		Non-current assets
	(a)	Property, plant and equipment	1,064	1,061
	(b)	Capital work-in-progress	116	106
	(c)	Investment property	48	48
	(d)	Other Intangible assets	25	25
	(e)	Financial assets
		(i) Investments	2,592	1,084
		(ii) Loans	12	12
		(iii) Others	181	403
	(f)	Deferred tax assets	15	23
	(g)	Non-current tax assets (net)	1	1
	(h)	Other non-current assets	99	91
		Total Non-current assets	4,152	2,854
2		Current assets
	(a)	Inventories	945	809
	(b)	Financial assets
		(i) Investments	491	1,379
		(ii) Trade receivables	378	374
		(iii) Cash and cash equivalents	22	6
		(iv) Bank Balances other than (iii) above	836	521
		(v) Loans	0
		(vi) Others	5	9
	(c)	Other current assets		0
	(d)	Current tax assets(net)	112	152
		Total current assets	2,788	3,250
		Total Assets	6,941	6,103

All	figures are	in unless otherwise stated INR crores,
		Particulars	As at 30/09/2020 (Unaudited)	As at 31/03/2020 (Audited)
B		Equity and Liabilities
1	Equity
	(a)	Equity share capital	177	177
	(b)	Other Equity	4,825	4,399
		Total equity	5,001	4,575
2		Non-current liabilities
	(a)	Financial liabilities (i) Borrowings	20	25
		(ii) Other financial liabilities	1	1
	(b)	Provisions	55	55
	(c)	Deferred tax liabilities (Net)	0	0
		Total Non-current liabilities	75	80
3		Current liabilities
	(a)	Financial liabilities
		(i) Borrowings	107	89
		(ii) Trade payables
		Due to micro and small enterprises	0	0
		Due to others	1,367	1,030
		(iii) Other financial liabilities	158	156
	(b)	Other current liabilities	73	46
	(c)	Provisions	129	123
	(d)	Current tax Liabilities (Net)	30	5
		Total Current liabilities	1,864	1,448
		Total Equity and Liabilities	6,941	6,103

Breakdown of Revenue from Operations

All figures unless otherwise stated in INR are crores,	Q2 FY21	Q2 FY20	Y-o-Y (%)	H1 FY21	H1 FY20	Y-o-Y (%)
Health Supplements	434	254	70.8%	743	456	62.7%
Digestives	91	89	2.5%	176	185	(4.7%)
OTC & Ethicals	188	134	39.8%	321	249	29.2%
Healthcare	714	478	49.3%	1,240	890	39.3%
Shampoo & Post Wash	61	52	17.8%	113	109	3.5%
Hair Oils	253	270	(6.3%)	472	565	(16.4%)
Hair Care	314	322	(2.4%)	586	674	(13.2%)
Oral Care	330	266	24.2%	594	526	12.9%
Home Care	113	126	(10.2%)	185	229	(19.3%)
Skin & Salon	101	73	38.1%	179	155	15.1%
HPC	858	787	9.1%	1,543	1,584	(2.6%)
Beverages	214	224	(4.8%)	403	521	(22.7%)
Culinary	16	14	12.1%	30	27	9.1%
Foods	229	238	(3.8%)	433	548	(21.1%)
Sales - Domestic FMCG	1,801	1,503	19.8%	3,215	3,022	6.4%
Others (Guar, Fem Pharma, Exports, etc)	98	96	1.8%	174	190	(8.2%)
Revenue - DIL Standalone	1,901	1,612	17.9%	3,392	3,240	4.7%
International	652	618	5.5%	1,169	1,278	(8.5%)
Retail	11	30	(63.6%)	13	62	(79.1%)
Inter Company Exports (Net)	(47)	(48)	n.m.	(78)	(95)	n.m.
Revenue from Operations - Consolidated	2,516	2,212	13.7%	4,496	4,485	0.2%

For more information and updates, visit: http://www.dabur.com/in/en-us/investor