India’s Dabur forecasts fourth-quarter revenue growth in mid-single-digit percentage

Indian consumer goods maker Dabur expects fourth-quarter operating profit to grow at a faster pace than revenue, which is set to rise in mid-single digits, as sturdy demand at home offsets slower growth in its international business.

The company said growth in its international business will be in low single digits due to the Middle East conflict which has disrupted demand and supply chains.

“We remain watchful of the evolving geopolitical landscape and will continue to take proactive measures to mitigate any potential impact on our operations and cost structure,” Dabur said in a statement on Friday.

A consumption tax cut in India last year boosted demand for Dabur’s products such as toothpaste and hair oils, and the company expects the effect to continue in the coming quarters, as 60% of its portfolio that was taxed at rates of 12% and 18% are now taxed at 5%.

Its food and beverages business saw a sequential improvement but is expected to register low-single-digit growth in the quarter.

Dabur’s consolidated revenue grew by less than 1% to 28.3 billion Indian rupees ($305.5 million) in the fourth quarter last year.