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Dabur India
The company would target to achieve mid teen revenue growth target for the next three
years.
The key determinants of growth would be continued strong GDP growth and rural
growth
The company would look to protect its overall EBITDA margins of 19%, 21% for
international operations and 18% for domestic operations in the long run.
Ad spend would continue at the rate of 13%-15% of sales depending upon new
launches. 70% of the selling and distribution spend is on media of which 70% is on
television advertisement.
The criteria for selecting a new product launch would be that the product should be
scaleable and the product should generate net contribution from third year. The company
believes that soaps and detergents categories don't fit the above criteria as there is
tremendous competition in these categories.
For acquiring a brand/company, Dabur would look at the products which can be
possibility sold in the emerging markets and can be scaled up and the acquisition should
be EPS accretive in the first year.
The disruption in sales due to the unrest in the MENA region is not significant. Sales in
Egypt comprise 3% of the overall sales and the disruption would mean a loss of 3-4
weeks of sales.
India Equity Research Reports, IPO and Stock News
Visit http://indiaer.blogspot.com/ for complete details �� ��
Dabur India
The company would target to achieve mid teen revenue growth target for the next three
years.
The key determinants of growth would be continued strong GDP growth and rural
growth
The company would look to protect its overall EBITDA margins of 19%, 21% for
international operations and 18% for domestic operations in the long run.
Ad spend would continue at the rate of 13%-15% of sales depending upon new
launches. 70% of the selling and distribution spend is on media of which 70% is on
television advertisement.
The criteria for selecting a new product launch would be that the product should be
scaleable and the product should generate net contribution from third year. The company
believes that soaps and detergents categories don't fit the above criteria as there is
tremendous competition in these categories.
For acquiring a brand/company, Dabur would look at the products which can be
possibility sold in the emerging markets and can be scaled up and the acquisition should
be EPS accretive in the first year.
The disruption in sales due to the unrest in the MENA region is not significant. Sales in
Egypt comprise 3% of the overall sales and the disruption would mean a loss of 3-4
weeks of sales.
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