India's Dabur drops after forecasting first revenue drop in 4 years
Oct 3 (Reuters) -Shares of Dabur India DABU.NS fell as much as 7.7% in early trade on Thursday, after the consumer goods maker forecast its first quarterly revenue decline in four years, citing weak demand in its food and beverages segment.
The stock was set for its worst day since mid-March 2022, and was among the top losers on the Nifty FMCG index .NIFTYFMCG which was down 0.74%.
Dabur on Tuesday said it expects 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.
This would mark its first revenue drop since the quarter ended June 2020, according to LSEG data.
The company faced a buildup of inventory and had to reduce channel inventory to boost distributor interest, said analysts at Antique Stock Broking.
Further, Dabur maintained its investment in brands, leading to a decrease in its operating margin to the mid-to-high teen percentage, the analysts said.
Reporting by Ashna Teresa Britto in Bengaluru; Editing by Varun H K
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