HUL ad spends down 7.3% YoY in Q3

Ad and promotional expenses saw a 3.9% decrease during the nine months ending December 31, 2024

by e4m Staff
Published: Jan 22, 2025 5:27 PM | 2 min read

Despite economic challenges, Hindustan Unilever Limited (HUL) said that it remains committed to its advertising and promotional activities, allocating Rs 1,507 crore during Q3 FY24. However, this represents a 7.3% decrease compared to Rs 1,626 crore spent in Q3 FY23, as reported in the company's quarterly results on Wednesday.

For the nine months ending December 31, 2024, HUL's advertising and promotional expenses totalled Rs 4,689 crore, marking a 3.9% decrease from Rs 4,873 crore during the same period in the previous year.

This decline aligns with HUL’s strategy of optimising marketing investments in the face of challenging market conditions and inflationary pressures.

Looking ahead, HUL’s total advertising and promotional expenses for the full financial year are projected to reach Rs 6,489 crore, reflecting a strategic recalibration aimed at optimising returns while ensuring sustained brand presence across various consumer touchpoints.

Consolidated revenue for the quarter ending December 31 stood at Rs 15,559 crore, up from Rs 15,259 crore in the same period last year. The Home Care segment saw high-single-digit volume growth in categories such as fabric wash and household care. However, overall underlying volume growth (UVG) was flat, reflecting a negative product mix.

HUL maintained a robust EBITDA margin of 23.5%, despite a 20-basis-point contraction compared to the year-ago period. Profit before tax (PBT) grew 16% to Rs 3,978 crore, bolstered by an exceptional gain of Rs 509 crore. Excluding this gain, profit after tax before exceptional items remained flat year-on-year at Rs 2,540 crore.
HUL has continued to invest strategically in key segments like personal care, Home Care and Foods & Refreshments, ensuring strong brand visibility in highly competitive categories.

It acquired 90.5 percent stake in Minimalist, a homegrown skincare brand, and divested its ice cream business Kwality Wall's in the quarter.

Rohit Jawa, CEO and Managing Director, remarked, “FMCG demand trends remained subdued, with continued moderation in urban growth, while rural markets showed a gradual recovery. In this operating context, we delivered competitive growth by driving unmatched brand superiority, investing behind brands and capabilities, and maintaining healthy margins.”