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Dabur India Ltd registers net profit of Rs 293.7 crore in Q3 of ’16-17
Saturday, 04 February, 2017, 08 : 00 AM [IST]
Our Bureau, New Delhi
Dabur India Ltd’s (DIL) board of directors met in New Delhi recently to consider the company’s unaudited financial results for the quarter and nine-month period ended December 31, 2016. The consolidated net profit for the third quarter of financial year 2016-17 stood at Rs 293.7 crore as against Rs 317.6 crore a year earlier.
The quarter ended December 31, 2016 was marked by a demonetisation-led liquidity squeeze that further impacted the already soft consumer demand across key fast-moving consumer goods (FMCG) categories.
This, coupled with the global headwinds in the form of currency fluctuations and rising cost of key inputs, led to Dabur ending the third quarter of 2016-17 financial year with consolidated net sales of Rs 1,847.7 crore. Net Sales for the same period of fiscal 2015-16 stood at Rs 1,967.5 crore.
“The wholesale trade was severely impacted by demonetisation, and we had witnessed a massive amount of destocking across the entire trade channel,” said Sunil Duggal, chief executive officer, Dabur India Ltd.
“We were quick to respond to the emerging situation, adjusting our production plans, reducing inventory, tightening credit controls, pruning media spends while increasing consumer promotions and revamping our supply chain to increase focus on the relatively more resilient urban markets, particularly modern trade,” he added.
“We also stepped up direct distribution to tide over the situation. These proactive measures helped us arrest the slide and even report market share gains in key categories,” Duggal stated.
Dabur’s packaged fruit juice and beverage brands saw an over five per cent gain in market share in Q3 of 2016-17, while the mosquito repellent brand Odomos saw its market share grow by over four per cent in the mosquito repellent cream and lotion category.
The company’s toothpaste portfolio also gained around 0.7 per cent share during the quarter. Its shampoo and hair oil businesses too gained share during the quarter.
“The overall business environment remained challenging in the third quarter, with key geographies witnessing sharp currency devaluations. We are pursuing a prudent growth strategy and have taken steps to efficiently manage the emerging risks and challenges,” stated Duggal.
“Going forward, Dabur will continue to focus on brand-building activities and market expansion programmes that will pave the ground for future growth,” he added.
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