Financial Performance vis-à-vis their strategies

Domestic Business: 69.4% of the revenue comes from domestic market

Health Care:
Year Net Sales % to domestic FMCG business
2017-18 Rs.1667 crores 31.7%
2018-19 Rs. 1894 crores 32.3%

Home & Personal Care:

Year Net sales % to domestic FMCG business
2017-18 Rs. 2650 crores 50.4%
2018-19 Rs. 2965 crores 50.6%

Food:
Year Net Sales % to domestic FMCG business
2017-18 Rs. 946 crores 18%
2018-19 Rs. 1003 crores 17.1%

Overseas Business: 27.1% of the total revenue comes from international market
a. Americans- 13.8%
b. Africa- 22.1%
c. Europe- 12.2%
d. Middle Seas- 27.1%
e. Asia- 24.8%
Dabur’s approach is to expand its presence in the key overseas markets, by leveraging its brand
image, distribution and manufacturing capabilities.
 Ratios pertaining to Income Statement

Turnover: Rs. 8533 crores.

Net Profit Margin: 16.97%
Return on Net Worth: 25.61%
Adjusted growth: 11%
PAT growth: 6.5%
Operating Profit Growth: 7.6%
Ratios pertaining to Balance Sheet
LIQUIDITY RATIOS:
1. Current Ratio: 1.35
2. Quick Ratio: 0.86
3. Inventory Turnover Ratio: 6.55
4. Total Debt/Equity: 0.09

PAYOUT RATIOS:
1. Dividend Payout Ratio: 81.81%
2. Cash Earnings Retention Ratio: 18.19%

PROFITABILITY RATIOS:
1. Operating Margin: 21.79%
2. Return on long term Funds: 39.11 %
3. Return on Net worth: 32.46%

Financial Inferences:
 Per the income statement it is observed that Net sales have increased to 9.9% in 2018-19.
Whereas, the Operating Profit saw a growth of 7.6% from 2017-18 to 2018-19. But the Other
Non-Operating Income has decreased by 3.0%. Tax expenses also saw a decline of 16.9%, which
in turn helped to increase the Profit after Tax.
 The company declared annual dividend of Rs. 2.75 per share. Total dividend paid during
the year including dividend tax for the year was Rs.585.6 crore, which took the dividend
payout ratio to 40.6%.

Financial Strategies:
1. Strategy based on foundation of Ayurveda, validated by modern-day- Science.
2. The penetration of OTC products is very low in India. The growing diseases, lifestyle
ailments, growing preferences for alternative systems of medicines will be a growth
opportunity for Ayurvedic and Ayurveda Products in future.
3. Prudent Growth strategy and working towards making traditional Indian knowledge
available in a form that appeals to the modern consumers.
4. To target the tech savvy youth, they run specialized campaign on their preferred digital
platforms. For this they have followed 5 C’s Control, Compliance, Consistency,
Continuous improvement and effective communication.
5. Focus on building brands and meet the ever-changing needs of our consumers with
innovative and relevant product offerings.
6. Multi-prolonged strategy adopted by Dabur to target spurious and counterfeit products
manufacturers including label printers, in collaboration with local authorities across states.
7. Keeping in view the position of Rupee in the market vis-a-vis foreign currency, Dabur has been
taking forward cover for foreign currency exports and imports from time to time
8. Driving growth in local markets abroad to drive Revenue and profitability of businesses in
individual geography.
9. In FY 2018-19 Dabur achieved a strong double-digit Revenue from Operations at Rs. 8533 Crore,
up 11% over the previous year on a like to like basis, adjusted for GST.
10. The value created, shared and invested At Dabur, our focus remains on creating long-term
sustainable value for all our stakeholders, including Consumers, Investors, Community,
Government and Employees.
11.