July 29 (Reuters) - India's Dabur reported a 15% rise in quarterly profit on Wednesday, as price increases and stable demand for personal care products and packaged foods helped counter rising raw material costs.
Several Indian consumer goods makers, including Dabur and industry bellwether Hindustan Unilever, have cut pack sizes and raised product prices to combat rising raw material and packaging costs triggered by disruptions linked to the Middle East conflict.
"In this hyper-inflationary environment ... judicious price increases helped," Dabur Global CEO Mohit Malhotra said.
Revenue rose 11% to 37.64 billion rupees ($393.53 million) in the quarter ended June 30, while volume in its India consumer business grew 5%, as sales through online platforms and supermarket chains climbed and rural demand was steady.
Dabur, known for its eponymous toothpaste and honey as well as Real beverage and Badshah spice brands, posted a profit of 5.91 billion rupees, with profit-after-tax margin expanding by 60 basis points.
The consumer goods maker expects fiscal 2027 margins to exceed last year's levels despite pressure on volumes, although Malhotra said on an earnings call that the pace of profit growth will depend on how the conflict in the Middle East evolves.
"War-led disruptions impacted international business, primarily Middle East," Dabur said in an investor presentation, adding that geopolitical tensions led to high inflation across its business.
Dabur's Middle East and North Africa revenue fell 5.4% on a constant-currency basis, while revenue increased in its other markets.
Last week, food majors Nestle India and Tata Consumer Products posted sharp surges in quarterly profits, while Hindustan Unilever reported a fall.
($1 = 95.6475 Indian rupees)
(Reporting by Praveen Paramasivam in Chennai; Editing by Eileen Soreng)
