Hindustan Unilever Limited spent Rs 1,024 crore in the first quarter of the fiscal year 2022, up 28.48% from the corresponding quarter in the previous year. The company had spent Rs 797 crore in Q1FY 21.
However, the expenditure on advertising in the quarter ending June 21 was 27.53% less than the previous quarter ending March 21. The FMCG major had spent Rs 1,413 crore in the fourth quarter of FY21.
HUL in the regulatory filing said it delivered a strong performance with Domestic Consumer Growth of 12%, Underlying Volume Growth of 9% and Profit after tax growth of 10%. Performance was broad based with all 3 divisions growing competitively and in double-digits. Our business fundamentals remain strong with a large part of our business gaining penetration.
EBITDA margins at 24% remain healthy. Profit after tax at Rs 2,061 crores increased by 10%.
“We continue to invest behind our brands and portfolio, and in future-fit capabilities. Our focused actions on net revenue management and savings have enabled us to manage inflationary pressures and deliver a healthy bottom-line performance,” the company said.
Sanjiv Mehta, Chairman and Managing Director, HUL, said, “In a challenging environment, we have delivered a strong performance across topline and bottomline. Our performance in the quarter has been resilient and is reflective of our capabilities, the agility in our operations and the intrinsic strength of our portfolio. The second wave of COVID-19 brought upon us a severe humanitarian crisis. We launched ‘Mission HO2PE’ to support the nation during this difficult period and have provided oxygen concentrators, facilitated upgradation of medical infrastructure, and are supporting vaccination of not only our employees and their dependents but also people in our extended value chain.
“Looking forward, we remain cautiously optimistic about the demand recovery. Our focus firmly remains behind delivering volume led competitive growth and margins in a healthy range.”