Unilever's India arm Q4 profit falls more than estimates as inflation, competition bite
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Hindustan Unilever, the Indian arm of UK's Unilever, posted a bigger-than-expected fall in fourth-quarter profit on Wednesday, as consumers cut back on spending amid sticky food inflation, while stiff competition hurt demand.
The company, whose brands include Dove, Cif and Cornetto, said its profit fell to 24.06 billion rupees ($288.9 million) in the three months ended March 31, from 25.52 billion rupees a year earlier.
Analysts, on average, had expected profit of 24.44 billion rupees, according to data from LSEG.
Top consumer goods giants face increasing competition from regional rivals, as smaller manufacturers are now better-equipped to compete for shelf space due to easing commodity prices, including of wheat and sugar.
Hindustan Unilever's sales rose only marginally to 146.93 billion rupees in the fourth quarter, with revenue in a key segment, beauty and personal care, declining 2.7%.
Its shares closed 0.1% lower ahead of its results. They declined 15% in the March quarter, much more than the roughly 5% drop in the Nifty fast-moving consumer goods index.
($1 = 83.2842 Indian rupees)
