FMCG major Hindustan Unilever reported a 12.74% increase in net profit to Rs 2601 crore for the quarter ended March 31, 2023, compared to Rs 2307 crore in the same quarter of the previous year.
The company’s advertising and promotion expenses grew marginally 1.16% to Rs 1311 crore for the quarter ended March 31, 2023 as compared to Rs 1296 crore for the quarter ended March 31, 2022. For the quarter ended December 31, 2022, ad spends of the company stood at Rs 1209 crore.
In a press note, the company said that HUL delivered strong performance with turnover growth of 11% and Underlying Volume Growth of 4%. Growth was competitive with more than 75% of the business winning market shares1. Profit After Tax (PAT) grew 10%.
On building back gross margin, stepping-up Advertising and promotions, in a press note company said, “Gross margin improved 120 bps vs DQ’22 with reduction in price vs. cost gap. We continued to invest competitively behind our brands and stepped-up A&P investments by 80 bps vs DQ’22. EBITDA margin at 23.7% remains healthy. PAT at Rs. 2,552 Crores was up 10% year-on-year.”
Sanjiv Mehta, CEO and Managing Director commented, “In challenging circumstances of geopolitical uncertainties, high commodity inflation and tepid market growths, I am pleased that we have delivered yet another year of strong and resilient performance. We have added c. Rs. 8000 Crores to our topline in this fiscal with volume growth in mid-single digits despite decline in FMCG market volumes. We continue to make steady progress in future-proofing our business through portfolio transformation and building distinctive capabilities”
He further added, “Looking forward, the near-term operating environment is likely to remain volatile. With inflation easing due to lapping of high base and sequential softening in a few commodities, price and volume growths will rebalance. Market volumes will recover gradually as consumption habits readjust. We remain focused on managing our business with agility and growing our consumer franchise whilst maintaining margins in a healthy range. We stay confident of the medium to long term potential of Indian FMCG sector and HUL’s ability to deliver a Consistent, Competitive, Profitable and Responsible growth.”