Top Story


Home >> Marketing >> Article

HUL and Emami ad spends grow by 24%; Dabur’s up by 10%

Font Size   16
HUL and Emami ad spends grow by 24%; Dabur’s up by 10%

A few of the top companies from the FMCG category had released their second quarter of results for FY2016. Some of them include Hindustan Unilever (HUL), Colgate-Palmolive, Dabur India, Emami, ITC and Nestle India. Since this category is one of the largest spending category in the media marketing space, we take a look at the ad spends and the results of these companies during Q2FY2016 (July – September 2015 quarter).

HUL and Emami ad spends grew by 24%

HUL announced its results a few weeks ago, and saw its ad spends increase by 23.8% in Q2FY2016. The ad spends of the company in the September ended quarter in FY2016 grew to Rs.1,145.04 crore from Rs.925.05 crore during the same quarter last year. However, the company’s ad spends marginally declined by 0.7% since the last quarter (Q1FY2016) as it stood at Rs.1,153.39 crore. During the quarter, the Domestic Consumer business grew at 5%, with 7% underlying volume growth. Profit before interest and tax (PBIT) grew by 7% and PBIT margin improved by +40 bps. Profit after tax before exceptional items, PAT (bei), grew by 1% to Rs.970 crore while Net Profit was at Rs.962 crore, the growth rate impacted by the exceptional income from the sale of properties in the base quarter and a higher effective tax rate.  

Emami’s ad spends during the quarter grew by 23.77% from Q2FY2015. Advertising and sales promotion expenses grew to Rs.111.52 crore in Q2FY’16 from Rs.90.1 crore in Q2FY’15. Similar to the other FMCG companies above Emami too saw a decline in ad spends in comparison to the previous quarter. Ad spends declined to 27.38% from Q1FY2015 as it stood at Rs.142.06 crore. However, in terms of total operating income during the quarter it saw a growth of 17.36% from Q2FY’15. The total operating income grew to Rs.574.62 crore in Q2FY2016 from Rs.489.60 crore in Q2FY2015. The net profit however saw a decline in growth of 49.8% in Q2FY2016 as it stood at Rs.61.06 crore in comparison to Rs.91.52 crore in Q2FY2015.

Dabur’s ad spends up by 10%; clocks in new profit of 18%

Dabur India on the other hand saw a 9.89% growth in ad spends in Q2FY2016 as against the corresponding period last year. The advertising and publicity expenses grew to Rs.278.42 crore in Q2FY2016 from Rs.253.35 crore in Q2FY2015. The ad spends however declined to by 18.74% since the previous quarter (Q1FY2016) as ad spends stood at Rs.330.61 crore. The total operating income saw a growth of 8.6% during the quarter. The operating income in Q2FY2016 grew to Rs.2,096.23 crore from Rs.1,929.58 crore in Q2FY2015. The net PAT on the other had saw a growth of 18.15% as it grew to Rs.341.17 crore in Q2FY’16 from 288.75 crore during the same quarter last year.

Colgate-Palmolive ad spends fall by 20%; strong net profit of 21%

Colgate-Palmolive India during September ended quarter saw its ad spends decline by 20.59% in comparison to the same quarter last year. The advertising and sales promotion expenses of the company during Q2FY2016 stood at Rs.166.68 crore from Rs.201 crore in Q2FY2015. It also saw a 20.29% lower ad spends that Q1FY2016 which stood at Rs.200.5 crore. In terms of the revenues the total operating income grew by 3.79% to Rs.1,038.47 crore in Q2FY2016 from Rs.1,000.52 crore in Q2FY2015. The net PAT however saw a high 21.1% growth in Q2FY2016 to Rs.156.93 crore from Rs.129.58 crore in Q2FY2015.

Nestle and ITC’s total operating income decline

Nestle India saw its total income from operations see a decline in growth for the second quarter this year after hit by the crisis. The total operating income declined by 47.5% since the corresponding quarter last year. The operating income in Q2FY2016 stood at Rs.1,742.36 crore from Rs.2,570.42 crore in Q2FY2015. While the company does not disclose its ad spends separately the ad spends would be part of the other expenses. The other expenses of the company too saw a decline as it stood at Rs.476.17 crore in Q2FY2016 from Rs.635.41 crore. The company however was seen on the road to recovery as it posted a net profit (PAT) Rs.124.2 crore as compared to a loss of Rs.64.4 crore in Q1FY2016. However, it was much lower than the corresponding quarter the previous year which it stood at Rs.311.29 crore.

ITC too saw its total income from operations see a decline in growth of 1.34%. The total operating income during the quarter stood at Rs.8,904.23 crore in Q2FY2016 and in Q2FY2015 stood at Rs.9,023.74 crore. ITC too doesn’t disclose their ad spends separately but is included as a part of the other expenses. The other expenses of ITC grew by 5.8% during the quarter as it stood at Rs.1,674.40 crore in Q2FY2016 from Rs.1,582.06 crore in Q2FY2015. The new profit of the company however saw a very marginal increase as it grew to Rs.2,431.25 crore in Q2FY2016 from Rs.2,425.16 crore in Q2FY2015.

Kranti Gada joined the family business at Shemaroo in 2006 after a successful stint of over two years in marketing at Pepsi Co. She has been associated with the company for 12 years.

Exchange4media interacted with Jaspreet Chandok, Vice President and Head (Fashion) , IMG Reliance Pvt. Ltd on seamless brands integrations planned for Lakme Fashion Week, walking tall despite blazing trails like GST, demonetization and being a part of the larger cultural space

Their strategy to educate the consumers to make well informed decisions at all stages has worked out well.

Bobby Pawar, MD, CCO - South Asia, Publicis India, talks about his idea of chilling out

Launches third phase of TVC campaign ‘Think it. Done’

Based in Mumbai, Usha has nearly two decades of experience in the Indian media and entertainment sector and will serve as a strategic advisor to H+K’s diverse portfolio of clients with a special empha...

Report based on media channel data in 96 countries and detailed findings from the world‘s key ad markets, which between them account for approximately two-thirds of the value of global advertising tra...