HUL ups ad & promotion expenses to Rs 1,175 Cr
The FMCG giant witnessed a rise of 12% in net profit for FY20
Hindustan Unilever Limited (HUL) posted a profit of Rs 1,519 crore in Q4FY20. The company registered a 1.2% decline YOY due to the coronavirus pandemic and the resulting nationwide lockdown.
For the quarter ended March 31, 2020, HUL pegged its income from sales at Rs 8,885 crore compared to Rs 9,809 crore in the year-earlier period. Net profit took a marginal dip, while net profit for FY20 rose 12%, standing at Rs 6,738 crore.
The quarter also witnessed one of HUL’s worst quarterly performances with domestic sales declining by almost 9.5%. Volume growth also dipped by 7% in the March quarter.
Srinivas Phatak, CFO of HUL stated that outbreak and lockdown worsened the slowdown, which was visible in the first two months of the quarter.
But there has been a marginal increase in HUL’s advertising and promotion expenses, unlike other firms. In order to maintain its competitive edge, the firm upped its adex to Rs 1,175 crore in the quarter.
Among HUL FMCG products, beauty and personal care segment witnessed a 24% decline but the hand sanitiser sales saw a 60x increase due to the pandemic. Its food and refreshment segment fell 6.7%.
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