Coca-Cola India’s Ad Spend Soars 35% To Rs 1,520 Crore In FY24
Increased ad spend and royalties contribute to a sharp decline in profits, while overall revenue continues its upward trajectory
Coca-Cola India's consolidated profit for FY24 saw a sharp decline of 41.82 per cent, falling to Rs 420.29 crore, according to the company's filing with the Registrar of Companies (RoC). The drop occurred despite a 4.24 per cent increase in revenue which reached Rs 4,713.38 crore. The company’s total income including other income, rose by 4.19 per cent, totalling Rs 4,801.84 crore for the fiscal year ending March 2024, as reported by Tofler.
In comparison, Coca-Cola India’s profit for FY23 stood at Rs 722.44 crore, with revenue from operations at Rs 4,521.31 crore.
A major contributor to the decline in profit was a 35.47 per cent increase in advertising and sales promotion expenses, which surged to Rs 1,520.21 crore from Rs 1,122.11 crore in the previous year. Additionally, royalties paid to its parent company, The Coca-Cola Company, rose by 4.68 per cent, totalling Rs 507.51 crore.
On a positive note, Coca-Cola India saw a reduction in its total tax expense for FY24, which dropped by 35.34 per cent, falling to Rs 171.42 crore from Rs 265.14 crore in the previous fiscal year.
The company’s overall expenses grew by 16.27 per cent, amounting to Rs 4,210.11 crore for the year.
Coca-Cola India operates several major brands including Coca-Cola, Thums Up, Limca, Sprite and Minute Maid. Coca-Cola India also runs Hindustan Coca-Cola Beverages (HCCB) which operates 16 bottling plants across the country.
