Note ban pulls down Dabur’s Q3 profit 7.3%

  • Fast-moving consumer goods major Dabur’s net profit declined 7.3 per cent in the December quarter to Rs 295 crore from Rs 318 crore during the same quarter a year ago.
  • Demonetisation affected revenue as consumers cut down on discretionary spending. Dabur’s primary sales declined 7 per cent during the quarter.
  • “The wholesale trade was severely impacted by demonetisation and we witnessed massive destocking in the trade channel,” said Sunil Duggal, chief executive officer, Dabur
  • To address falling profits, Dabur to cut down advertising and media expenditure by 21 per cent to Rs 177 crore from Rs 225 crore during the same quarter a year ago.
  • Daburhas changed its production plans, reduced inventory and tightened credit control. Dabur in not the only FMCG company to face poor sales after demonetisation.
  • Hindustan Unilever has reported a 4 per cent dip in salesduring October-December. Its revenue fell by 0.7 per cent and profit grew 6.8 per cent as price hikes offset lower sales.
  • ITC saw its net profit rise 0.67 per cent and revenue 2.6 per cent as tepid demand hurt sales.
  • Daburin not the only FMCG company to face poor sales after demonetisation.
  • Hindustan Unilever has reported a 4 per cent dip in sales during October-December.
  • ITCsaw its net profit rise 0.67 per cent and revenue 2.6 per cent as tepid demand hurt sales.
  • Dabur’s oral care products portfolio witnessed a 5 per cent decline insales and its home care segment a decline of 20 per cent.
  • Therefore from the above news we can see that most of the FMCG companies are hit post demonetisation.
Source : http://bit.ly/2jB1633
Date- 1st feb ,2017

 

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