Hindustan Unilever’s advertising and promotion expenses grew by 12.82% YoY to Rs 1,505 crore in Q1 of FY24 in comparison to Rs 1,334 crore in the same quarter of last year.
Even on a QoQ basis, the company’s ad spends grew by 14.80%. The FMCG major spent Rs 1,311 crore in Q4 of FY23.
HUL reported a 6.9% rise in consolidated profit after tax at Rs 2,556 crore in the first quarter ended June 30, 2023.
The company had posted a consolidated net profit of Rs 2,391 crore in the same quarter last fiscal, Hindustan Unilever said in a regulatory filing.
Consolidated total income in the first quarter stood at Rs 15,679 crore as against Rs 14,757 crore in the corresponding period last fiscal.
Total expenses were higher at Rs 12,167 crore as compared to Rs 11,531 crore in the same quarter a year ago, the company said.
In Q1 FY24, HUL’s Home Care delivered strong performance with 10% revenue growth and mid-single digit UVG. Both- Fabric Wash and Household Care grew double-digit led by focused market development actions and premiumisation.
Beauty and Personal Care delivered 4% revenue growth with mid-single-digit UVG. Skin Care and Colour Cosmetics grew double-digit on the back of strong performance in the premium portfolio. Hair Care delivered mid-single digit UVG led by Tresemme, Indulekha and Clinic Plus.
Skin Cleansing also had a modest volume-led growth in the period with Lux and Hamam continuing to outperform. Further price reductions were taken in the soaps portfolio in this quarter. Oral Care delivered strong double-digit growth led by Closeup.
Foods and Refreshment revenue also grew by 5% with near flat UVG in Q1 with tea seeing modest volume-led growth as the category continued to witness consumers downgrading due to higher inflation in premium teas vis-à-vis loose tea.
While HFD continued to grow competitively with both Horlicks and Boost performing well, foods grew in mid-single digits led by strong performance in Ketchup and Food Solutions and ice cream grew in mid-single digits on an exceptionally high base. Notably, unseasonal rains also impacted Ice Cream consumption in the quarter.
Commenting on the Rohit Jawa, CEO and Managing Director, Hindustan Unilever, stated, “FMCG markets are recovering gradually although the operating environment remains challenging. In this context, we have delivered a resilient and competitive performance whilst stepping up our EBITDA margin.”
“In the near term, the FMCG industry will continue to witness rebalancing of the price-volume growth equation and a gradual recovery in consumer demand. In this environment, we will continue to provide superior value to our consumers and invest in our brands. We remain focused on driving our long-term strategic priorities including market development and building distinctive capabilities for the future. I am confident of the medium to long-term prospects of the Indian FMCG sector and HUL’s ability to deliver consistent, competitive, profitable and responsible growth,” he added.