(Reuters) – Honey-to-packaged juice maker Dabur India reported a lower-than-expected quarterly profit on Wednesday, hurt by weaker demand in urban areas and heavy rains in parts of the country.
Its consolidated profit dropped nearly 18% to 4.25 billion rupees ($50.6 million) for the three months ended Sept. 30, missing analysts’ expectations of 4.38 billion rupees, according to estimates compiled by LSEG.
Persistently high food inflation squeezed urban demand, while heavy floods also impacted consumer consumption, Dabur said in an investor presentation.
The company’s earnings are in line with the downbeat results posted by its consumer goods peers such as Hindustan Unilever, Nestle India, and ITC, due to factors including weak urban demand.
India’s monsoon rainfall this year was its highest since 2020, with above-average precipitation from July to September, leading to floods in many states and affecting soft drink sales.
Dabur’s second-quarter revenue slid 5.5% to 30.29 billion rupees as revenue from its two biggest units-consumer care and food-declined 4% and 14%, respectively.
The firm also said sales declined after it reduced inventory at mom-and-pop stores to account for consumers increasingly shopping at supermarkets and online platforms.
Despite the results, Dabur shares closed 2% higher, paring gains after having traded up as much as 3% earlier in the session.
($1 = 84.0590 Indian rupees)
(Reporting by Praveen Paramasivam; Editing by Abinaya Vijayaraghavan)
