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HUL's ad spend up 15.7% to Rs 28.3 bn in FY'11

MUMBAI: For broadcasters who are clamouring for increase in advertising rates, there is a piece of good news.


Hindustan Unilever, the largest ad spender in the country, has upped its spending on a consolidated basis for the fiscal ended 31 March 2011, more than offsetting Marico‘s marginal drop. 
 
India‘s largest household products and consumer goods maker has increased its spend on advertising and promotions by 15.68 per cent to Rs 28.33 billion during the fiscal, up from Rs 24.49 billion in the year-ago period.


Ad spending on a standalone basis also rose 15.59 per cent to Rs 27.64 billion for the fiscal, from Rs 23.91 billion.
 
However, HUL has cut down its standalone ad spend for the fourth quarter, albeit marginally. The company, which owns brands such as Dove soap, Clinic shampoo and Closeup toothpaste, spent Rs 6.23 billion towards advertising and sales promotion, down from Rs 6.26 billion a year ago.


For the quarter, HUL increased brand investment in the personal products and food segment.
 
"A&P spends, at Rs.6.23 billion, remained competitive at 12.7 per cent of sales, with increased brand investment in personal products and foods," the company said in a statement.


The company said net profit in the fourth quarter ended March fell to Rs 5.69 billion, from Rs 5.81 billion a year ago.


The company‘s cost of goods sold went up by 290 basis points in the quarter.


Marico had earlier announced a marginal drop in its ad spend for the fiscal. The company, which manufactures hair-oil brand Parachute, had spent Rs 3.46 billion towards advertising and sales promotion for the year ended 31 March 2011. In the previous fiscal, Marico had an ad spend of Rs 3.51 billion.

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