HUL's adex up 34.49% in Q3FY24 to Rs 1626 crore

In the third quarter ended December 31, 2023, of the current fiscal year, Hindustan Unilever has recorded a 34.49% spike (YOY) in its spending on advertising and promotion as it spent Rs 1626 crore in Q3.

Earlier, in the corresponding quarter of the previous fiscal year, the FMCG major had spent Rs 1209 crores.

That being said, the conglomerate also saw its net profit going up marginally by 1.09% from Rs 2481 crores it amassed in Q3FY23 to Rs 2508 crores in the corresponding quarter this year.

This has happened despite HUL’s Total Income being up only 0.47% YoY to Rs 15781 crores in Q3FY24 juxtaposed to last year’s Rs 15707 crores and the company’s total expenses being up  0.65%.

In the third quarter of the current fiscal year, the company had incurred a total expense of Rs 12305 crores, as against Rs 12225 crores in the corresponding period of last fiscal.

In its regulatory filing, the FMCG major also mentioned that the segment revenue coming in from sales and other operating income for its sub brands in categories such as Home Care,  Beauty and Personal Care, and Foods and Refreshment went down 0.19% on a YoY basis from Rs 15597 crores in Q3FY23 to Rs 15567 in the corresponding quarter, this fiscal.

Amongst these categories, it was HUL’s segment revenue from the Home Care category which went down 1.27% in Q3 FY24. However, other categories such as Beauty and Personal Care grew 0.31% and Foods and Refreshment by 0.89% on a yearly basis.

Two of HUL’s sub categories- Home Care, and Beauty and Personal Care, which constitute about 75% of the company’s business saw a volume recovery and had mid-single digit UVG, whereas Foods and Refreshment, on the other hand, saw a low-single digit decline in UVG primarily due to pricing taken in the year to offset impact of higher commodity cost.

Sharing his views on the quarterly update, Rohit Jawa, CEO and Managing Director, Hindustan Unilever said, ‘HUL has delivered another quarter of resilient performance with strong operating fundamentals amidst a challenging operating environment. 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 we expect gradual recovery in market demand to continue aided by increased Government spending, recovery in winter crop sowing and better crop realisation. Rural income growths and winter crop yields are key factors that will determine the pace of recovery. In this context, 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 Indian FMCG sector and HUL remains well positioned to unlock this opportunity whilst navigating the short-term challenges,” he added.

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