FMCG major Dabur is witnessing profit booking after its Q1 results beat street estimates. Mohit Malhotra, CEO of the company spoke with CNBC-TV18 on the earnings fineprint, business growth, and synergies and opportunities in the healthcare space going ahead.
FMCG major Dabur is witnessing profit booking after its Q1 results beat street estimates.
Mohit Malhotra, CEO of the company spoke with CNBC-TV18 on the earnings fineprint, business growth, and synergies and opportunities in the healthcare space going ahead.
Malhotra said Dabur is continuously on the lookout for acquisition targets, adding that as opposed to pre-COVID valuations, the valuations have now become reasonable.
“We are continuously on the lookout to detect targets that will provide us synergistic, growth opportunities in India. There is nothing on the table as yet but we are continuously on a spree scouting out for targets in case there is something that gives us a reasonable valuation. Then why not bolstered organic growth with inorganic piece also in India,” he said.
Malhotra shared that Dabur is looking at 5 to 6 percent maintenance of the new product percentage to the overall business, which the firm thinks is very good. “The organic business should grow about high single digits plus NPD is contributing to another 5- 6 percent and which is a good percentage for a sustainable growth going forward. These NPD ratios will be maintained across our business verticals be it food, beverage, healthcare and also personal care,” he explained.
Speaking about growth in revenues Malhotra said, “Going forward, we are expecting new products and healthcare to contribute another 5 percent and around mid to high single-digit growth rate in the organic business. So overall, a low double-digit growth rate in healthcare is what we are predicting for the balance of the year. That should be good because that will keep CAGR for two years in the range of double-digit growth rates.”
He added that the company is looking at double-digit revenue growth for the full year. “We have high single digit volume growth and to top with price increase so double digit vale growth should be a reality in the current year but with a caveat of COVID third wave if all is well then I think double digit revenue growth is what we are looking at," he said.
Commenting on the price hike he said while there is unprecedented inflationary pressure, Dabur has passed on some of it by way of a price increase of around 3 percent plus it undertook cost-cutting last year
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(Edited by : Kanishka Sarkar)