Dabur India Ltd. — Interim / Quarterly Report 2020

Jan 30, 2020

Date: January 30, 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

Executn/e V P (Finance) and Company Secretary

End: as above

Investor Presentation

Q3 FY20

THE SCIENCE OF

30th January 2020

Agenda

Q3 FY20 – Performance Summary

Q3 FY20 – Consolidated Financials

• India FMCG business grew by 5.6% in both value and volume
• International Business grew by 12% on CC basis

• Consol Material cost reduced by 80 bps to touch 49.9% in Q3 FY20
• Media expenditure was at 8.6% in Q3 FY20 vs 8.1% in Q3 FY19 – growing by 14.3%
• Consolidated Operating Margin improved by 70 bps, reaching 20.9% in Q3 FY20

• Consolidated PAT increased by 8.7%
• Before exceptional the growth in PAT was 12.8%
• Consol PAT margin improved by 26 bps to touch 16.9%

Q3 FY20 – Business Overview

• Contribution of Domestic FMCG reduced from 72.2% to 71.1%
• International Business contributed 26.1% as compared to 25.0% last year

Agenda

Domestic FMCG Growth – By Verticals – Q3 FY20

Domestic FMCG Business (excluding Foods) grew by 7% in volume terms

Healthcare (HC) – Q3 FY20

	Health Supplements	Digestives	OTC	Ethicals
Growth %	12.2%	15.9%	5.5%	2.7%
Category Highlights	Strong double-digit • growth in Chyawanprash • Dabur's market share in Chyawanprash category increased by ~314 bps	Driven by continued • strong performance of Hajmola tablets • Pudin Hara Lemon Fizz reported strong double digit growth	Strong growth in • Honitus brand • High base growth of 17.7% for OTC	Ethicals' performance • was relatively muted on account of high base growth of 17.4% in Q3 FY19 YTD growth of 7.6% • indicative of underlying growth

Dabur Chyawanprash – Changing Weather TVC

Honitus - Metro Station Branding in

Home & Personal Care (HPC) – Q3 FY20

	Oral Care	Hair Oils	Shampoo & Post Wash	Home Care	Skin & Salon
Growth %	8.5%	0.4%	5.1%	2.5%	(0.3%)
Category Highlights	• Red Toothpaste grew by 9.5% • Babool Franchise reported 5% growth Lal Dant Manjan • grew by 10.4% Market share in • toothpastes improved by ~30 bps	• Growth impacted by category slow down • Market share in hair oils increased by ~50 bps Sarson Amla and • Brahmi Amla recorded double digit growth	• Vatika Shampoo bottles growing in double digits – bottles saliency going up • Market share in shampoo category increased by ~60 bps	• Strong growth in Odomos with gain in market share Odonil Aerosols • reported strong growth	• Skin Care was relatively muted on account of consumption slowdown and high base growth of 19.3%

Babool Ayurvedic – New TVC

9

Dabur Red – New TVC Dabur Amla – World's No. 1 Hair Oil

Foods – Q3 FY20

	Foods
Growth %	(1.7%)
Category Highlights	• As per Nielsen, J&N category declined by 11.6% (in volume) in Q3 due to downtrading to lower priced alternatives • Excluding Diwali Gift Packs, Real fruit juices grew by ~5%. Diwali Gift Packs were impacted by the shift in Diwali this year (from Nov in 2018 to Oct in 2019) • Real Activ grew by 17% on the back of strong growth in Activ Coconut Water and institutional business Market share of Real Fruit Juices increased by 530 bps to touch 62.4% •
	Culinary business under Hommade brand reported strong double-digit growth •
		Real Activ Coconut Water – Digital
Real –	Diwali Gift Packs	Campaign 10	Hommade – Digital Campaign

Agenda

Consumer/ Marketing Initiatives – Healthcare

Consumer/ Marketing Initiatives – Healthcare

Ethicals portfolio – 45 vaid meets covering 2,000 vaids Mega Health Camp for Bhopal Gas Tragedy Victims

Consumer/ Marketing Initiatives – Home & Personal Care

Dabur Amla – Savdhaan Campaign Oxylife – Salon Workshop in Towns

Meswak - New TVC Star Screen Awards Sponsorship by Babool and Fem

Consumer/ Marketing Initiatives – Foods

Agenda

Hajmola Chatpati Hing

Odonil Aerosol - Floral Bliss and Ocean Breeze

Bring home
2 New Exotic Fragrances

Odonil

Floral Bliss | Ocean Breeze

Real Aloe Vera Kiwi

Arshoghani Vati

Agenda

International Business – Q3 FY20

• International Business reported CC growth of

12.0%

• MENA market clocked 10.1% CC growth in this quarter
• Egypt recorded growth of 17.0%
• Hobby had a strong quarter, growing by 32.2%
• Namaste business reported 9.8% growth with a strong

performance in the international business

• Nepal business increased by 20.6%

Q3 FY20 Constant Currency Growth %

Product Launches – International Business

Consumer/ Marketing Initiatives – International Business

Consolidated Profit & Loss Statements

figures All are in INR cr	Q3 FY20	Q3 FY19	Y-o-Y (%)	9M FY20	9M FY19	Y-o-Y (%)
Revenue from operations	2,353.0	2,199.2	7.0%	6,838.2	6,404.9	6.8%
Other Income	74.5	75.3	(1.0%)	229.5	230.1	(0.3%)
Total Income	2,427.4	2,274.5	6.7%	7,067.75	6,634.97	6.5%
Material Cost	1,174.4	1,115.3	5.3%	3,410.6	3,239.7	5.3%
of % Revenue	49 9%	50 7%		49 9%	50 6%
Employee expense	244.8	237.6	3.0%	717.7	696.0	3.1%
of % Revenue	10 4%	10 8%		10 5%	10 9%
Advertisement and publicity	203.5	178.1	14.3%	549.8	510.6	7.7%
% of Revenue	8 6%	8 1%		8 0%	8 0%
Other Expenses	237.4	222.9	6.5%	720.1	676.2	6.5%
of % Revenue	10 1%	10 1%		10 5%	10 6%
Operating Profit	492.9	445.4	10.7%	1,440.1	1,282.3	12.3%
% of Revenue	20 9%	20 3%		21 1%	20 0%
EBITDA	567.4	520.6	9.0%	1,669.6	1,512.5	10.4%
of % Revenue	24 1%	23 7%		24 4%	23 6%
Finance Costs	10.5	16.7	(37.4%)	41.0	47.2	(13.2%)
Depreciation & Amortization	54.4	44.9	21.3%	161.6	130.7	23.7%
Profit before exceptional items, tax and share of profit/(loss) from joint venture	502.5	459.1	9.5%	1,467.0	1,334.6	9.9%
% of Revenue	21 4%	20 9%		21 5%	20 8%
Share of profit / (loss) of joint venture	(0.2)	0.5	(128.8%)	0.4	1.0	(62.4%)
Exceptional item(s)	20.0	0.0	n.a.	80.0	0.0	n.a.
Tax Expenses	83.5	92.4	(9.6%)	221.1	260.8	(15.2%)
Net profit after tax and after share of profit/(loss) from joint venture	398.9	367.2	8.6%	1,166.3	1,074.8	8.5%
of % Revenue	17 0%	16 7%		17 1%	16 8%
Non controlling interest	1.2	1.2	0.9%	2.5	2.9	(11.5%)
Net profit for the period/year	397.7	366.1	8.7%	1,163.8	1,071.9	8.6%
of % Revenue	16 9%	16 6%		17 0%	16 7%

Standalone Profit & Loss Statements

figures All are in INR cr	Q3 FY20	Q3 FY19	Y-o-Y (%)	9M FY20	9M FY19	Y-o-Y (%)
Revenue from operations	1,748.2	1,664.5	5.0%	4,988.6	4,674.8	6.7%
Other Income	67.3	67.4	(0.1%)	209.9	211.7	(0.9%)
Total Income	1,815.4	1,731.8	4.8%	5,198.50	4,886.45	6.4%
Material Cost	895.1	863.9	3.6%	2,568.10	2,436.99	5.4%
of % Revenue	51 2%	51 9%		51 5%	52 1%
Employee expense	149.7	147.9	1.2%	444.7	429.1	3.6%
% of Revenue	8 6%	8 9%		8 9%	9 2%
Advertisement and publicity	166.3	147.0	13.1%	445.1	413.8	7.6%
of % Revenue	9 5%	8 8%		8 9%	8 9%
Other Expenses	145.5	140.2	3.8%	448.1	421.3	6.4%
% of Revenue	8 3%	8 4%		9 0%	9 0%
Operating Profit	391.6	365.5	7.1%	1,082.7	973.5	11.2%
of % Revenue	22 4%	22 0%		21 7%	20 8%
EBITDA	458.8	432.9	6.0%	1,292.5	1,185.2	9.1%
of % Revenue	26 2%	26 0%		25 9%	25 4%
Finance Costs	4.7	9.5	(51.3%)	16.6	23.5	(29.2%)
Depreciation & Amortization	32.6	28.0	16.7%	96.8	80.2	20.7%
Profit before exceptional items, tax and share of profit/(loss) from joint venture	421.5	395.4	6.6%	1,179.14	1,081.52	9.0%
of % Revenue	24 1%	23 8%		23 6%	23 1%
Exceptional item(s)	20.0	0.0	n.a.	80.0	0.0	n.a.
Tax Expenses	71.5	83.2	(14.1%)	185.8	231.5	(19.8%)
Net profit for the period/year	330.0	312.1	5.7%	913.3	850.0	7.5%
of % Revenue	18 9%	18 8%		18 3%	18 2%

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As per AC Nielsen RMS Dec'2018 data

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