HUL’s adex decline by 13.8% (YoY) to Rs 1,501 crore in Q2 FY2025

New Delhi: FMCG giant Hindustan Unilever reported a 13.8% drop in advertising and promotional expenses, totalling Rs 1,501 crore in Q2 FY2025, compared to Rs 1,742 crore in the same quarter last year. 

Quarter-on-quarter, ad spending also decreased by 10.7%, down from Rs 1,681 crore in Q1 FY2025. 

Additionally, on a half-yearly basis, the company’s ad expenditure saw a slight decline of 2%, falling to Rs 3,182 crore from Rs 3,247 crore in the first half of the previous fiscal year. 

The company reported a 2.33% decline in consolidated net profit at Rs 2,595 crore for the second quarter ended September 30, 2024.

The company had logged a net profit of Rs 2,657 crore in the July-September quarter a year ago, the company said in a regulatory filing.

However, revenue from product sales was up 2.36% at Rs 15,703 crore in the September quarter. It was at Rs 15,340 crore in the year-ago period.

"In the September quarter, FMCG demand witnessed moderating growth in urban markets, while rural continued to recover gradually. In this context, we delivered a competitive and profitable performance," HUL CEO and Managing Director Rohit Jawa said.

HUL reported an underlying sales growth of 2% and underlying volume growth of 3%. Total expenses were at Rs 12,581 crore in the September quarter, up 3.03% year-on-year.

HUL's total income, which includes other income, was up 2.14% to Rs 16,145 crore in the September quarter of FY25.