Dabur net profit down, sales hit by demonetisation
New Delhi, Jan 31 (IANS) FMCG major Dabur India on Tuesday reported a 7.5 per cent decrease in consolidated net profit to Rs 293.7 crore for the quarter ended on December 31 as compared to Rs 317.6 crore in the corresponding period the last financial year.
Its net sales in the quarter under review was Rs 1,847.7 crore, down by 6 per cent from Rs 1,967.5 crore in the year-ago period.
The consumer goods company said the quarter was marked by “a demonetisation-led liquidity squeeze” that further impacted the already soft consumer demand across key FMCG categories.
This coupled with the global headwinds in the form of currency fluctuations and rising cost of key inputs impacted the sales.
“The wholesale trade was severely impacted by demonetization and we had witnessed a massive amount of destocking across the entire trade channel,” said company’s Chief Executive Officer Sunil Duggal.
With the emerging situation, the company adjusted production plans along with reducing inventory, tightening credit controls and revamping supply chains.
“The overall business environment remained challenging in the third quarter with key geographies witnessing sharp currency devaluations,” he said.
Going forward, the company will continue to focus on brand-building activities and market expansion programmes, Duggal added.