Unilever's India unit falls as royalty fee rise overshadows profit beat
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Unilever's India Unit Falls As Royalty Fee Rise Overshadows Profit Beat
Shares of Hindustan Unilever (HUL) fell as much as 4.3% on Friday, as a deal to pay its UK parent higher royalty fees took the shine off a bigger-than-expected rise in quarterly profit
Topics
Hindustan Unilever Limited | unilever india | Royalty
CHENNAI (Reuters) - Shares of Hindustan Unilever (HUL), which sells Dove soap and Close-up toothpaste in India, fell as much as 4.3% on Friday, as a deal to pay its UK parent higher royalty fees took the shine off a bigger-than-expected rise in quarterly profit.
The Indian consumer goods major also said the royalty and central services fees it pays UK-based Unilever, which has a roughly 62% stake in HUL, would increase to 3.45% of turnover over the next three years, from 2.65% currently.
Total quarterly profit for the company climbed nearly 12% to 25.05 billion Indian rupees ($308.38 million) for the December quarter, HUL said in an exchange filing after markets closed on Thursday. Analysts polled by Refinitiv had expected 24.76 billion rupees.
($1 = 81.2300 Indian rupees)
(Reporting by Praveen Paramasivam in Chennai; Editing by Nivedita Bhattacharjee)
(Only the headline and picture of this report may have been reworked by the Business Standard staff; the rest of the content is auto-generated from a syndicated feed.)
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First Published: Fri, January 20 2023. 10:42 IST
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