HUL Q3 net dips, drags stock down

Rising input costs have made a dent in Hindustan Unilever’s net profit for the third quarter. HT reports.

Rising input costs have made a dent in Hindustan Unilever’s net profit for the third quarter. The company posted a net profit of R637.5 crore, down by 1.8% for the quarter ended December.

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The consumer goods giant registered volume growth in the quarter, with net sales growing by 11.6%. Domestic consumer business (FMCG and water) grew by 11.8%, with a 11.6% growth in the home and personal care segment and 11.3% in the foods business.

Advertising and promotions spending grew by 17% to maintain market competitiveness and to develop emerging categories. Operating profit for the quarter declined by 9.9% and the operating margins were lower by 320 basis points.

The company said it is taking steps to increase buying efficiencies and save more costs through various programmes.

HUL shares dipped 5.5% on BSE on Tuesday, the worst loser on the bourse.