HUL ad and promo expenses up in fiscal 2019

HUL ad and promo expenses up in fiscal 2019

Advertisment and promotion expenses were up in absolute value as well as per centage of revenue

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BENGALURU: One of the largest advertisers in India, FMCG major Hindustan Unilever Ltd (HUL) spent 10.9 per cent more towards advertisement and promotion (ad expenses) for the year ended 31 March 2019 (FY 2019, year or period under consideration or review) as compared to the previous fiscal (FY 2018, previous year or fiscal). The company’s revenue from sale of products during the period under review increased 8.8 per cent, while net profit after tax (PAT) increased 15.3 per cent as compared to the previous year.

HUL’s revenue from sale of products for FY 2019 was Rs 37,660 crore as compared to Rs 34,619 crore in the previous year. Ad expenses in FY 2019 was Rs 4,552 crore (12.1 per cent of revenue from sale of products) as compared to Rs 4,105 crore (11.9 per cent of revenue from sale of products) in FY 2018. The company’s PAT for fiscal 2019 was Rs 6,036 crore (16 per cent of revenue from sale of products) as compared to Rs 5,237 crore (15.1per cent of revenue from sale of products). Please refer to the graphs below:

 

HUL chairman and managing director Sanjiv Mehta commented: “We have delivered a strong performance for the quarter despite some moderation in rural market growth. Our focus on strengthening the core and leading market development has been consistently delivering good results. We have now grown top line and bottom line for the eighth consecutive year and our 2019 results are a testament to both our strategy and execution. With our ‘Re-imagining HUL’ agenda, we are well poised to build an organisation which is purpose led and future fit. Given the macro-economic indicators, near-term market growth has moderated. However, medium-term outlook stays positive. As an organisation we are well positioned to respond with speed and agility to meet the needs of our consumers. We remain focused on our strategic agenda of delivering consistent, competitive, profitable and responsible growth.”

The HUL board of directors have proposed a final dividend of Rs 13 per share of face value of Re 1 each, subject to the approval of the shareholders at the AGM. Together with the interim dividend of Rs 9per share, the total dividend for the financial year ending 31 March 2019 amounts to Rs 22 per share.