Emami’s Q1 ad spend up 8.3% to Rs 634 mn

MUMBAI: Kolkata-based Emami has upped its advertising and promotion expenses for the quarter ended 30 June 2012 by 8.28 per cent to Rs 634.2 million.

While the advertising budgets have increased, the percentage to sales has decreased marginally by one per cent. For the first quarter of FY‘13, the company spent 19.7 per cent of its revenue on advertising.

Emami has recorded the smallest YoY spike in advertising expenses among its peers for the first quarter of the financial year. Marico leads the pack with an increase of 61 per cent, followed by Dabur’s 51 per cent. In third place is Colgate with an advertising spend hike of 32 per cent, just ahead of HUL at 30 per cent. Procter and Gamble’s quarterly results are yet to be announced.

Emami’s quarterly revenue for Q1 FY‘13 stood at Rs 3.39 billion; 14.14 per cent more than Q1 FY12’s Rs 2.97 billion. Profits also saw a spurt of 12.3 per cent from Rs 415 million in Q1 FY‘12 to Rs 466.1 million this year.

Recently, Emami roped in Scarecrow Communications to handle the creative duties for its edible oil brand Tasty and Healthy. The other agency on its roster is Curry Nation which handles brands like Hairlife and Vasocare.

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