Demonetisation of higher currency notes in India along with economic crisis in Brazil adversely impacted FMCG major Unilever’s sales growth in 2016. The company on Thursday reported sales growth of 3.7 per cent for the year 2016 and blamed demonetisation in the Indian market and economic crisis in Brazil for slower growth.
Commenting on the results, Unilever CEO Paul Polman said: “We have delivered another good all-round performance despite severe economic disruptions, particularly in India and Brazil, two of our largest markets. This further demonstrates the progress we have made in transforming Unilever into a more resilient business. We have again grown ahead of our markets, driven by strong innovations that support our category strategies.”
Unilever said the economic crisis in Brazil and removal of Rs500 and Rs1,000 notes from circulation in India presented significant additional headwinds. The company also said emerging markets reported underlying sales growth 6.5 per cent in 2016.
Earlier this week, Unilever’s India operations, Hindustan Unilever ltd (HUl) reported 6.82 per cent increase in standalone net profit to Rs1,037.93 crore for the third quarter of current fiscal on account of strong exceptional income. Hindustan Unilever ltd (HUl) had posted net profit of Rs971.66 crore in the October-December quarter of last fiscal.