HUL cuts ad spends in Q2 FY25

Hindustan Unilever Limited (HUL) decreased its advertisement and promotion expenses by 2% in Q2 FY25 to Rs 3182 crore, compared to Rs 3247 crore it spent in the same quarter last year.

The total income saw a 1.98% increase, from Rs 31.485 crore in Q2 last year to Rs 32,109 crore in July-September quarter of 2024.

The home care business secured a revenue of Rs 5,731 crore, increasing by 7.9% from Rs. 5308 crore in Q2 of previous fiscal.

The investor presentation mentioned, “Personal care segment’s fabric wash sales volumes grew in high single digit driven by premiumisation and market development actions. Liquids and fabric care portfolio continues to outperform. Household Care saw a high single digit volume growth led by a premium dishwash portfolio.”

The beauty and wellbeing segment earned a revenue of Rs 3,421 crore in this year’s Q2. This same number stood at Rs 3,337 crore in the previous year’s similar quarter.

“Hair Care maintained momentum with volume led high-single digit growth. Sunsilk, Dove and Tresemme grew double-digit. Formats of the future continue to gain consumer traction. The Skin Care and Colour Cosmetics segment saw mid-single digit growth fueled by strong performance in premium skin care. Focus on high growth demand spaces led by 6 big-bets and channels of the future continues to yield results,” as per the presentation.

Personal care and food & refreshment business’ revenues stood at Rs 2411 crore and Rs 3803 crore respectively for the aforesaid quarter. This number stood at Rs 2536 crore and Rs 3851 crore in Q2 FY24.

For personal care specifically, the brand believes the revenue declined primarily on account of pricing actions taken during the year. Premium portfolio grew ahead of the segment, within that body wash strengthened its market leadership, delivering high double-digit growth.

Looking ahead, the brand’s priorities would be focussed on driving competitive volume-led Growth, continue investment behind brands and long-term strategic priorities, and maintain cost savings and discipline through Net Productivity Programme.

Rohit Jawa, CEO and Managing Director commented, “In the September quarter, FMCG demand witnessed moderating growth in Urban markets while Rural continued to recover gradually. In this context, we delivered a competitive and profitable performance. We continued to execute on our strategic priorities of transforming our portfolio whilst generating healthy EBITDA margin and cash flows, providing attractive returns to our shareholders. We remain watchful of gradual recovery in consumer demand while creating a sustained competitive advantage through our business fundamentals: investing behind our aspirational brands, scaling market-making innovations and maintaining operational rigor.”