Unprecedented level of inflation impacted consumption in April-June, says Dabur

New Delhi

Home-grown FMCG firm Dabur said consumption pressure continued across the sector in the April-June quarter of FY23 on account of ‘unprecedented inflation’, which has impacted the share of the income available for spending on consumer staples.

“This was witnessed across urban and rural markets,” Dabur said in its update for the quarter ended on June 30, 2022.

In this challenging macro environment Dabur’s India business had been “fairly resilient”, and is expected to report “high single-digit revenue growth” on a very high base of 35.4% revenue growth in Q1 FY22, it added.

“This is backed by mid-single-digit volume growth. Food & beverages vertical has seen strong double-digit growth in the quarter on the back of improving out-of-home consumption, innovation and intense summer season,” said Dabur.

The company said its international business was expected to register a ‘high single-digit revenue growth’ during the April-June quarter in constant currency.

However, due to currency devaluation, particularly of Turkish Lira, the reported growth in Indian rupees would be in the low single digit.

“Overall, the consolidated revenue is expected to grow at mid to high single digits. We continue to grow ahead of category growths and gain market share in most of our segments,” said Dabur.