Second Quarter - Dabur India Limited

Sunil Duggal:Dabur India Limited Q2/H1Earnings Conference CallOctober 31 st , 2008Good afternoon, ladies and gentlemen. I welcome you all to our conference call regardingthe results for the half-year ended October 30, 2008. Dabur India Limited has delivered agrowth of 16.7% in consolidated sales in the half-year period with a stronger 17.8% growthduring the second quarter. Net profit on consolidated basis including retail registered agrowth of 12.4% for the half-year period with similar performance in the second quarter.Net profit excluding retail registered a growth of 17.8% for the half year and 15.7% for thesecond quarter. The overseas business housed under the international business divisionposted an impressive growth of 40.1% for the half year and similar growth in the secondquarter. Our renewed focus on ayurvedic and OTC healthcare category have lead to stronggrowth for the consumer health division (CHD), which has reported 22.6% growth duringthe half year and 21% during the quarter. The consumer care division, which is ourdomestic FMCG business, grew by 11.3% for the first half and 12.7% for the quarter.Amongst the various categories, hair oil, shampoos, health supplements and skin careposted the best results.Hair oils have recorded a growth of 16% for the six months and 20% for the second quarter.The performance is lead by impressive growth in Dabur Amla Hair Oil and Anmol CoconutOil. Vatika Hair Oil reported a good pick up in the second quarter posting a 12.5% growth.Shampoo category grew by a strong 31.3% for the first half, 36.4% for the quarter. All thevariants have performed well while the newly launched Vatika Black Shine Shampooreported sales of 7 crores in the first six months of launch.Health supplements recorded steady growth of 13.4% with good performance from DaburHoney, which grew by 17.7% for first half and 20.4% during the quarter. DaburChyawanprash registered a growth of 11.3% for the half-year period. Another celebritybrand ambassador has been taken on board for Dabur Chyawanprash whose name will beannounced shortly. Skin care category performed well with growth of 18.1% for the firsthalf and 24% for second quarter after excluding the discontinued business of Vatika Soap.This was driven by strong growth momentum in the Gulabari Brand backed by aggressiveactivation programs and beauty pageants in West Bengal and Uttar Pradesh, which havegiven a good boost to the brand. The new variants, that is Gulabari Hydrating Rose Creamand lotion have been launched nationally and have received a good response.Oral care category reported a moderate growth of 4.4% mainly due to marginal decline inLal Dantmanjan. The category excluding tooth powder grew by 10% during the half-yearperiod. The toothpaste growth has been subdued as Babool our biggest brand had flat salesgrowth due to some denomination issues, which have been addressed. The digestivescategory grew by 4.4% in the first half and 10% during the quarter. Hajmola brandperformed well, but Pudin Hara showed a decline. The brand is set for a relaunch in thelater part of the year.