Report on Shemaroo

HUL ad spends swell 19% in Q3 2020

Beauty & personal care grew nine per cent with robust performance across categories.

Mumbai: FMCG behemoth Hindustan Unilever Ltd (HUL) has reported a 20 per cent growth in sales and 19 per cent rise in profit for the quarter ended 30 December 2020.

Interestingly, the ad spends for the consumer goods major grew by 19 per cent y-o-y to reach Rs 1,392 crore for the quarter. In 2019, the ad spends for the corresponding quarter stood at Rs 1,171 crore.

EBITDA margins remained healthy at 24 per cent. Net profit grew to Rs 1,921 crore. Domestic consumer growth grew at seven per cent. Higher mobility, consumer relevant innovations and investments behind market development are driving business momentum. Their business fundamentals remained strong with 86 per cent of our business gaining penetration.

The company reported that health, hygiene and nutrition, which makes up 80 per cent of its portfolio, continued to grow in double digits, along with a significant improvement in discretionary categories.

Home Care: With increased mobility, Fabric Wash performance in the quarter improved sequentially. Household care continued its strong performance across segments delivering double-digit growth. 

Beauty & personal care: The category grew nine per cent with robust performance across products  and strong double-digit growths in skin cleansing, hair care and oral care. Skin cleansing performance was led by ‘Lifebuoy’ and double-digit growth in the premium segment. Skin Care portfolio growths were led by good demand pick-up in the winter portfolio. Consumer-focused portfolio interventions in Hair Care are yielding strong results. ‘Close Up’ and ‘Pepsodent’ accelerated as contextual communications drove brand salience. Color Cosmetics performance is improving sequentially. 

Foods & refreshment: The segment sustained its high growth momentum, growing at 19 per cent. In tea, all brands continued to grow in high double-digits and well ahead of the market. In foods, ketchups and soups performed strongly growing high double-digits. The nutrition business too grew in double-digits as business returned to normalcy post restoration of disrupted supply lines. Ice creams, foods solutions and vending businesses are improving progressively as out-of-home consumption occasions increase.

HUL chairman & MD Sanjiv Mehta commented, “With Covid cases coming down sharply and increasing mobility, economic activity in the country continues to improve. The rapid rollout of vaccines will give further impetus to economic growth. The near-term demand outlook is improving, and we expect to see revival in urban while rural should continue to do well. Inflationary pressures are building up in select commodities and we will manage them judiciously. I am confident that we are very well positioned to capture the growth opportunities and accelerate momentum.”

Latest Reads
Guest column: Post Covid, food hygiene is the top priority for F&B brands

One of the most desirable consequences of Covid2019 has been the increased all-round consciousness for hygiene. And among several types of hygiene such as personal hygiene, environmental hygiene etc which impact our day-to-day lives, food hygiene has naturally emerged as a major issue for...

MAM Marketing Brands
Women's Day 2021: Brands inspire, bat for gender equality

Every year in the countdown March 8, brands go all out to woo the ‘fairer sex’, leaving no stone unturned. We are bombarded by a plethora of deals for retail therapy and tempting offers for some actual therapy at spas and salons to pamper women this one day of the year.

MAM Marketing MAM
Central’s new Insta-web series says #WomenWearItBetter

Women’s Day is all about celebrating the true essence of being a woman. To capture the same, Central has released a campaign called #WomenWearItBetter this Women’s Day.

MAM Marketing MAM
Adidas celebrates Women’s Day with Watch Us Move campaign

In the run-up to International Women’s Day, global sportswear giant Adidas has launched Watch Us Move – a campaign to celebrate womanhood and their freedom of movement.

MAM Marketing MAM
Khud Bane Ho Toh, Greenply Banta Hain salutes the resilient human spirit

Furniture manufacturer Greenply Industries has launched a new set of TV campaigns Khud bane Ho Toh, Greenply Banta Hain, which celebrates the resilience of human spirit and highlights the journey of every self-made individual, from humble beginnings, sobering failures to their path of greatness.

MAM Marketing MAM
Jaguar Land Rover to lay off a third of India workforce

Tata Group-owned Jaguar Land Rover (JLR) is undertaking its biggest ever retrenchment drive in its India operations, slashing its workforce by nearly a third, according to a report by Business Today.

MAM Marketing MAM
Why Havells’ new ceiling fan is actually a ‘Feeling Fan’

MUMBAI: Leading FMEG Havells India has rolled out a new advertisement campaign for its technologically advanced ceiling fan category. Conceptualised by Mullen Lintas Delhi, the campaign “It's not just a fan, it's a ‘Feeling Fan’” showcases IoT (Internet of Things) enabled smart features like voice...

MAM Media and Advertising Ad Campaigns
Ahead of Women’s Day, Reebok says ‘It’s A Man’s World’

MUMBAI: British-American footwear and clothing company Reebok has launched its latest campaign titled ‘It’s A Man’s World’ in association with MADWOMEN, an all-female creative collective. The campaign unveiled in the run-up to Women’s Day, featuring two collections comprising six iconic sneakers,...

MAM Media and Advertising Ad Campaigns
Chingari celebrates woman power with #SheGotSpark

MUMBAI: Homegrown short-video sharing platform Chingari is celebrating women power with its distinctive campaign #SheGotSpark. Find women from every walk of life as they share their courageous stories of proving themselves via their videos. The chosen few motivational videos get featured by...

MAM Media and Advertising Ad Campaigns

Sign up for our Newsletter

subscribe for latest stories

* indicates required