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.
