HUL's Q3 consolidated ad spends up 19% at Rs 1392 crore
The company recorded a 20% growth in sales at Rs 11,969 crore as against Rs 9,953 crore a year ago
FMCG giant Hindustan Unilever Limited's (HUL) consolidated advertising and promotion expense has jumped 19% to Rs 1392 crore for the quarter ended 31st December 2020, compared to Rs 1171 crore in the corresponding quarter of the previous fiscal.
In the preceding quarter, the advertising and promotion expenses stood at Rs 1144 crore. For 9M FY21, the company spent Rs 3336 crore on advertising and promotions, compared to Rs 3538 crore in 9M FY20.
The company recorded a 20% growth in sales at Rs 11,969 crore as against Rs 9,953 crore. Net Profit jumped 19% to Rs 1,938 from Rs 1,631 a year ago. HUL said that the EBITDA margins at 24% remain healthy. The company also said that it has significantly dialed up investments behind its portfolio and in building future-fit capabilities. Net revenue management and savings agenda has enabled the company to drive a healthy bottom line.
“Domestic Consumer Growth (excluding the impact of the merger of GSK CH and acquisition of ‘VWash’) stood at 7%. Higher mobility, consumer-relevant innovations, and investments behind market development are driving business momentum. Our business fundamentals remain strong with 86% of our business gaining penetration. Health, hygiene, and nutrition forming c.80% of our portfolio continues to grow in double digits and we have seen significant improvement in discretionary categories,” the company stated.
HUL Chairman and Managing Director Sanjiv Mehta commented, “With COVID cases coming down sharply and increasing mobility, economic activity in the country continues to improve. The rapid rollout of vaccines will give further impetus to economic growth. Our consumer-relevant innovations, market development, and execution excellence have enabled us to drive broad-based growth across our categories in the December quarter. I am particularly pleased with the performance of our Nutrition business and with the recovery in the discretionary segments of our portfolio; these are structurally attractive and offer immense growth potential. The near-term demand outlook is improving, and we expect to see revival in urban while rural should continue to do well. Inflationary pressures are building up in select commodities and we will manage them judiciously. I am confident that we are very well positioned to capture the growth opportunities and accelerate momentum."
Here’s what the company shared about its different verticals:
With increased mobility, Fabric Wash's performance in the quarter improved sequentially. Our focus on driving market development has enabled us to grow Liquids and Fabric Sensations segments strongly. Household Care continued its strong performance across segments delivering double-digit growth. We continue to step up innovations and have launched ‘Nature Protect’ a range of multi-category hygiene mix powered by plant-based actives. We also entered new demand spaces with the launch of ‘Vim Matic Dishwash’, ‘Surf Excel Smart Spray’, and ‘Surf Excel Active Hygiene’ to cater to our consumer’s needs.
Beauty & Personal Care
Beauty & Personal Care grew 9% with robust performance across categories and strong double-digit growths in Skin Cleansing, Hair Care, and Oral Care. Skin Cleansing performance was led by ‘Lifebuoy’ and double-digit growth in the premium segment. Skin Care portfolio growths were led by good demand pick-up in the winter portfolio. Our consumer-focused portfolio interventions in Hair Care are yielding strong results. ‘Close Up’ and ‘Pepsodent’ accelerated as contextual communications drove brand salience. Color Cosmetics performance is improving sequentially. During this quarter, we launched ‘Vaseline Anti-Bacterial Hand Cream’ and a new range of ‘Dove’ body lotions.
Foods & Refreshment
Foods & Refreshment sustained the high growth momentum growing at 19%. In Tea, all our brands continue to grow in high double-digits and well ahead of the market. Coffee saw the launch of ‘Bru Veda’, a new variant, with an infusion of ayurvedic ingredients. In Foods, Ketchup and Soups performed strongly growing high double-digits. Our Nutrition business too grew in double-digits^ as business returned to normalcy post the restoration of disrupted supply lines. With relaunch as ‘Plus’ range from the house of ‘Horlicks’, we made a strategic intervention into the high sciences space of adult nutrition. Ice Creams, Foods Solutions, and Vending businesses are improving progressively as out-of-home consumption occasions increase.
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