HUL Increases Ad Spend To Rs 1,644 Crore In Q1 FY25

Hindustan Unilever (HUL) reported a 1.5 per cent YoY rise in net profit to Rs 2,538 crore for Q1 FY25. Total sales grew 2 per cent YoY to Rs 15,523 crore, while ad and promotion spending increased by 11 per cent to Rs 1,644 crore from Rs 1,481 crore in Q1 FY24.

Home Care showed robust growth with a 4 per cent USG and high-single-digit UVG. Fabric Wash volumes rose by high-single digits due to strategic actions across both mass and premium segments. Household Care also saw mid-single-digit volume growth, driven by strong performance in the premium dishwash segment.

Beauty & Wellbeing achieved a 3 per cent USG and mid-single-digit UVG. Hair Care saw double-digit volume growth, led by strong performances from Sunsilk, Clinic Plus and Dove. However, skincare and colour cosmetics experienced subdued volume growth due to declines in the mass portfolio. 

Personal Care achieved low-single-digit UVG but saw a 5 per cent decline in USG. Skin Cleansing posted low-single-digit volume growth, though revenue fell due to pricing adjustments. Bodywash reinforced its market leadership, while Oral Care experienced mid-single-digit growth driven by pricing. During the quarter, Lux and Lifebuoy were relaunched with enhanced product formulations.

Foods & Refreshment reported a 1 per cent USG, with volumes holding steady despite the impact of a harsh summer. Nutrition Drinks (Horlicks & Boost) had a subdued performance. Adult nutrition products performed well and Tea strengthened its market leadership through gains in both value and volume share. Coffee achieved double-digit growth, driven by pricing. Foods saw low-single-digit volume growth, led by strong performance in food solutions, mayonnaise, peanut butter and international sauces.

Ice cream experienced double-digit volume growth, boosted by successful launches during the summer. New products introduced included Bru’s speciality coffee range ‘Southern Trails,’ Kwality Walls’ Strawberry Sundae and Hellman’s 5-in-1 mayonnaise seasoning mix.

The EBITDA margin improved to 23.8 per cent, up by 20 basis points compared to JQ’23. Gross Margin increased by 170 bps, while A&P investments rose by 90 basis points.

Rohit Jawa, CEO and Managing Director commented, “HUL’s first quarter performance reflects our decisive actions of transforming our portfolio in high growth spaces aided by gradual recovery of rural markets. Our commitment to unlocking access to aspiration, market making and premiumisation supported by our distinctive capabilities is a key driver of our competitive edge. We continue to focus on driving competitive volume growth, generating fuel to invest behind our brands and making our business future fit. We remain confident of the medium to long-term potential of the Indian FMCG sector. With our strong brands, execution prowess and distribution might, HUL is well positioned to leverage this growth opportunity as we continue transforming our business to outperform.”