(Reuters) – Consumer goods maker Dabur India forecast a decline in its second-quarter revenue on Tuesday, citing weak demand in its food and beverages segment, its first drop in more than four years.
Dabur forecast a revenue fall in the mid-single digit percentage range for the quarter ended Sept. 30, as heavy rain and floods across parts of the country impacted “out of home” consumption, it said.
The food and beverage segment accounted for 14% of its overall revenue, according to its annual report for the year ended March 2024. Rainfall in the country from June through September was the highest since 2020, the state-run weather department said on Monday.
Data from LSEG showed Dabur last reported a decline in revenue in the June quarter of 2020.
The company said its operating margin — a key earnings metric — was also likely to decline in the mid- to high-teens percentage range as it spent heavily on advertising and promotions.
However, Dabur expects to post a double-digit percentage growth in constant currency terms in its international business, which accounts for about a quarter of its revenue.
Dabur will report its quarterly results on Oct. 30 and is the first among peers Marico, Godrej Consumer Products, and Adani Wilmar to release its quarterly update.
(Reporting by Meenakshi Maidas in Bengaluru and Praveen Paramasivam in Chennai)
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