HUL’s ad spend slips 4.5% to Rs 6,199 crore in FY2025

New Delhi: Hindustan Unilever (HUL) pared down its advertising and promotional spending for FY25. According to the consolidated financials reported by the FMCG giant, the AdEx for the fiscal year ended March 31, 2025, stood at Rs 6,199 crore. 

This marked a marginal dip of 4.5% from Rs 6,489 crore spent by the FMCG major in the previous fiscal.

HUL’s advertising and promotional expenses came in at Rs 1,510 crore in Q4, as compared to Rs 1,616 crore in the corresponding quarter of the previous year. 

The AdEx saw a minor uptick of Rs 3 crore on-quarter basis. 

The FMCG major reported a decline of 3.35% in its consolidated net profit at Rs 2,475 crore for the fourth quarter ended March 31, 2025.

The company had logged a net profit of Rs 2,561 crore in the January-March quarter a year ago, the company said in a regulatory filing.

However, revenue from product sales was at Rs 15,416 crore in the March quarter, led by volume growth, up 2.68% from Rs 15,013 crore in the year-ago period.

"HUL reported an Underlying Sales Growth (USG) of 3 per cent and an Underlying Volume Growth (UVG) of 2%," said HUL in its earnings statement.

However, the EBITDA margin, which was at 23.1%, declined 30 bps year-on-year, it added.

HUL's total expenses in the March quarter was at Rs 12,478 crore, up 3.12% and total income, which includes other revenue, was up 3.48 per cent to Rs 15,979 crore.

For the financial year ended March 31, 2025, HUL's net profit was up 3.78% to Rs 10,671 crore. It was Rs 10,282 crore in FY'24.

The company's total income in FY'25 was up 2.28% to Rs 64,138 crore, as against Rs 62,707 crore a year before.

"In FY'25, our turnover surpassed Rs 60,000 crores, with an Underlying Sales Growth of 2% and an EPS growth of 5%. While absolute volume tonnage grew in mid-single digits, it was partially offset by a negative mix," HUL CEO and Managing Director Rohit Jawa said.

Jawa further noted that the company delivered a competitive performance, further strengthening its market leadership during the year.

"This year marked a step up in our portfolio transformation with increased innovation in high-growth spaces, amplified investments in channels of the future, acquisition of Minimalist, divestment of Pureit, and the decision to demerge the ice cream business," he said.

Over the outlook, Jawa said he anticipates demand conditions to gradually improve over the next fiscal year.