HUL stepped up ad spends by 25% in Q4 FY2018 to Rs 1,070 cr
“Despite a step-up in competitive intensity, we have delivered another strong performance for the quarter and the year. Growth and improvement in profitability have been sustained through a combination of winning innovations and a relentless focus on operational efficiencies. We are particularly pleased with our track record of sustained margin improvement for the seventh consecutive year,” said Harish Manwani, Chairman, HUL, while commenting on the conglomerate’s performance during Q4 FY2016 as well as FY2018.
During the fourth quarter ended March 31, 2018, HUL stepped up its advertising and promotion spends to support innovations and marketing activations. HUL’s Q4 FY2018 advertising spends stood at Rs 1,070 crore, compared to ad spends of Rs 853 crore in Q4 FY2017, a growth of 25 per cent.
HUL’s ad spends for the financial year 2017-18 were at Rs 4,105 crore, a growth of 18 per cent over spends of Rs 3,470 crore in FY16-17.
The FMCG giant reported comparable domestic consumer growth at 16 per cent in Q4 FY2018, with underlying volume growth at 11 per cent. Net sales were up 3 per cent.
EBITDA at Rs 2,048 crore in Q4 FY2018 was up 24 per cent, as against Rs 1,651 crore in Q4 of the previous fiscal.
Net profit recorded a growth of 14 per cent at Rs 1,351 crore over Rs 1,183 crore in Q4 FY2017.
For the financial year 2017-18, comparable domestic consumer growth was 12 per cent, with 6 per cent underlying volume growth. Net profit was up by 17 per cent at Rs 5,237 crore. HUL’s strong track record of cash generation was sustained.