Parle Biscuits ad spends up 9% in FY25; profits down 39%

Parle Biscuits Private Limited stepped up its advertising and promotional expenditure by nearly 9 per cent in FY25, even as the FMCG major reported a steep decline in profitability amid rising costs, according to its latest financial statements.

Advertising and promotional expenses increased to Rs 482.96 crore in FY25 from Rs 443.17 crore in FY24, underscoring continued investment behind brands despite margin pressure.

The biscuit maker posted revenue from operations of Rs 15,568.49 crore in FY25, up 8.5 percent from Rs 14,349.40 crore in the previous financial year. Total income stood at Rs 16,190.98 crore, compared to Rs 15,085.78 crore in FY24, marking a growth of 7.3 percent year-on-year.

However, rising input and operating costs weighed heavily on profitability. Total expenses jumped 14.6 per cent to Rs 14,881.30 crore in FY25 from Rs 12,980.12 crore a year earlier. Cost of materials consumed rose 16.2 per cent to Rs 10,745.13 crore, while employee benefit expenses increased 9.4 per cent to Rs 420.53 crore.

Profit before tax fell sharply by 37.8 per cent to Rs 1,309.68 crore in FY25, compared to Rs 2,105.66 crore in FY24. Net profit declined even more steeply, dropping 39 per cent to Rs 979.53 crore from Rs 1,606.26 crore in the previous year.

Total tax expense for the year stood at Rs 330.15 crore, down 33.9 per cent from Rs 499.40 crore in FY24, reflecting lower profitability.

Despite the sharp contraction in margins, Parle Biscuits continued to increase its advertising and promotional outlay, signalling a focus on defending market share and brand strength in an increasingly competitive FMCG landscape marked by cost inflation and pricing pressures.