Unilever’s India unit posts lower profit on higher expenses, labour code charge

Feb 12 (Reuters) – Hindustan Unilever reported a 15% fall in third-quarter profit on Thursday, as expenses rose and the Indian consumer giant took a one-time hit from the country’s new labour codes.

The local unit of UK’s Unilever  home to the Dove and Surf Excel brands, said its profit from continuing operations for the three months ended December 31 fell to 25.90 billion rupees ($286.05 million) from 30.39 billion rupees a year earlier.

The company took a one-time charge of more than 1 billion rupees tied to the country’s new labour codes.

India’s new labour codes — the country’s biggest overhaul of workers’ laws in decades — have dragged profits of corporates across sectors, from Godrej Consumer Products and Mahindra Holidays and Resorts to Wipro.

The company also said it would acquire the 49% stake it does not already own in Zywie Ventures for 8.24 billion rupees to beef up its “health & wellbeing” business. It is also selling its minority stake in Nutritionalab for 3.07 billion rupees.

($1 = 90.5450 Indian rupees)