HUL ad spends up; FMCG major spent Rs 1,626 crore in December quarter
HUL reported a net profit of Rs 2,519 crore and revenue for Q3 FY 2023 stood at Rs 15,188 crore.
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Hindustan Unilever, India's largest consumer goods company, said that there has been a gradual recovery in volumes and while urban markets continue to remain resilient, rural markets remain subdued. HUL owns household brands like Surf Excel, Lifebuoy, Lakme, Dove, Rexona, Vaseline, Pepsodent, Glow & Lovely, Close-up, Brooke Bond Red Label, Bru, Knorr, Horlicks and Rin, among others
The company reported volume growth of 2 percent for the 2023 October to December quarter. HUL reported a net profit of Rs 2,519 crore and revenue for the quarter stood at Rs 15,188 crore. Even on a year-on-year basis, HUL's revenue was nearly the same as the December quarter last year.
Home Care business saw revenue decline 1.3 percent from last year while Beauty and Personal Care segment's revenue remained flat from last year. Volume growth for the beauty and personal care (BPC) business grew in mid-single-digits led by hair and premium skin businesses. The skin cleansing business declined from last year due to price cuts, while the oral care business grew in mid-single digits led by Closeup.
The company reported a consolidated Rs 417 crore rise in its advertising and promotional expenses in the December quarter, as it spent Rs 1,626 crore on ads and promotions, compared to Rs 1,209 crore in the corresponding quarter last year.
Acknowledging a challenging operating environment, HUL CEO and MD Rohit Jawa said in a statement, "Our focus on providing the right consumer value, excellence in execution, increased investments behind brands and capabilities, premiumisation and market development continues to serve us well."
Looking forward, HUL expects a gradual recovery in market demand to continue aided by increased Government spending, recovery in winter crop sowing and better crop realization. Rural income growths and winter crop yields are key factors that will determine the pace of recovery.
Jawa added, "Our focus remains on driving competitive volume growth whilst stepping up investment behind our brands and long-term strategic priorities. We remain confident of the mid to long term potential of the Indian FMCG sector and HUL remains well positioned to unlock this opportunity whilst navigating the short-term challenges."
