HUL's Q4 FY22 ad spends down by 8.6% YoY

Hindustan Unilever Limited spent Rs 1,296 crore on advertising in the fourth quarter of the fiscal year 2022, down by 8.6% from the corresponding quarter of the previous year. The company had spent Rs 1,418 crore in Q4 of FY21.

Although, the Q4 ad spend was 8.6% more than the previous quarter ending December 31, 2021. The company had spent Rs 1,193 crore on advertising and promotions in Q3 FY 2022. 

Altogether, the company spent Rs 4,744 crore on advertising in FY22 in comparison to Rs 4,754 crore spent in FY 2021.

The company’s standalone net profit rose by 8.58% to Rs 2,327 crore for the fourth quarter ended March 31, 2022. It stood at Rs 2,143 crore in the same period last year. HUL’s revenue from the sale of products during Q4FY22 was Rs 13,190 crore, which is up by 10.40% from Rs 11,947 crore from the same quarter of the previous year. 

The company’s turnover stood at Rs 50,336 crore, which grew by 11% with underlying volume growth of 3%. HUL’s EBITDA margin remained healthy at 24.8%, lower than FY 2021. The Board of Directors have proposed a final dividend of Rs 19 per share, subject to the approval of shareholders at the AGM. Together with the interim dividend of Rs 15 per share, the total dividend for the year amounts to Rs 34 per share.

Sanjiv Mehta, CEO and Managing Director, HUL, commented, “In challenging circumstances, we have grown competitively and protected our business model by maintaining margins in a healthy range. I am also pleased that we have become a Rs 50,000 crore turnover company in this fiscal. Our consistent performance is reflective of our strategic clarity, the strength of our brands, operational excellence, and dynamic financial management of our business. While there are near term concerns around significant inflation and slowing market growth, we are confident of the medium to long-term prospects of the Indian FMCG sector and remain focused on delivering a Consistent, Competitive, Profitable and Responsible growth.”

Home Care: Stellar performance continues

Home care growth at 24% was broad-based with a strong performance in Fabric Wash and Household Care. Both categories grew in strong double-digits with all parts of the portfolio performing well.  

Beauty & Personal Care: Steady performance led by Skin Cleansing

Beauty & Personal care grew competitively at 4%. Skin cleansing delivered double-digit growth driven by pricing and led by strong performance in ‘Lux’, ‘Dove’ and ‘Pears’. Hair care continued its strong competitive performance in the quarter with all brands gaining shares. 

Foods & Refreshment: Strong performance on a high base comparator

Foods & Refreshment grew 5% on a very high prior-year comparator, driven by solid performance in Beverages, Foods, and Ice-cream. Tea continued its robust performance and grew competitively on an exceptionally high base. Health Food Drinks continued to gain market share and penetration on the back of focused market development actions and new communications. Ice Cream had a very strong quarter delivering high double-digit growth, broad-based across brands and formats.  

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